Question

Nine homes recently sold in your community in the following order and for these amounts: $360,000; $460,000; $360,000; $380,000; $360,000; $420,000; $380,000; $520,000; and $360,000. Your boss, Andrew Santoso, a realtor with Hagen & Associates, wants you to compute the mean, median, and mode for this real estate market.

Compute the mean, median, and mode for the recently sold homes. Explain your analysis as well as the characteristics of each type of “average.”

Answer 1

Mean:

Mean = SUm of Prices / Count

= [ $ 360000 + $ 460000 + $ 360000 + 380000 + 420000 + 380000+ 520000+ 360000 ] / 9

= $ 3,600,000 / 9

= $ 400,000

Meadian:

Median is the middle amount

360000, 360000 , 360000, 360000, 380000 , 380000, 420000, 460000 & 520000

Thus median is 5 th item ( 9+1) / 2.

Thus median is $ 380000

Mode: It is highest repeated amount

360000 - 4 times

380000 - 2 times

420000 - 1 time

460000 - 1 time

520000 - 1 time

Thus Mode is $ 360000