Question

The housing market has homes priced wildly differently with most to fit the affordability of the “middle class” and a select few homes priced for the “1 percent”. Present an argument as to why the real estate market would prefer to describe the housing market pricing based on the median price to prospective buyer. (include thoughts on the type of skew (left, symmetric, right), Mean, Median, and Mode in your description.)

Answer 1

The housing market pricing distribution is skewed to the right (positively skewed): The tail on the right is much longer than the tail on the left. Most data falls to the right side of the graph's peak.The Mode is less than the Median, which is less than the Mean. So, the real estate market would prefer to describe the housing market pricing based on the median price to prospective buyer because the median is less than the mean in positively skewed distribution so that purchaser will see a low price for the housing.