Question

Home Prices - $144,277 $149,000 $159,000 $169,000 $174,900 $179,000 $189,000 $195,000 $200,000 $209,000

Mean = $177,087.70 Median = $176,950 Mode = None

1. Which measure of central tendency do you feel best represents the typical home price meeting those criteria?

2. Why?

3. Why are the measures of central tendency the same or different?

Answer 1

(1) we have 10 data values. Mean is $177087.70 and median is $176,950. I think mean best represents the typical home price meeting those criteria

(2) I think mean best represents the typical home price meeting those criteria because there is no outlier or any value which has large impact on the mean value. So, mean value is giving us the best or most appropriate measure of central tendency

(3) measures of central tendency are different because median is the middle value of all data values and mean is the average price of all the 10 given prices. Median is the average of 5th and 6th value in this case.