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You look at real estate ads for houses in Sarasota, Florida. Many houses range from $\backslash (200,000$ to $\backslash )400,000$ in price. The few houses on the water, however, have been priced up to $\$15$ million. Which of the following statements best describes the distribution of home prices in Sarasota?

(a) The distribution is most likely skewed to the left, and the mean is greater than the median.

(b) The distribution is most likely skewed to the left, and the mean is less than the median.

(c) The distribution is roughly symmetric with a few high outliers, and the mean is approximately equal to the median.

(d) The distribution is most likely skewed to the right, and the mean is greater than the median.

(e) The distribution is most likely skewed to the right, and the mean is less than the median.

Step by step solution

01

Given information

Range of prices of most of the homes $=(\$200,00,\$400,00)$

The highest range of prices wherein few of them were $\$15$ million.

02

Concept

Distribution is the set of numbers observed from some measure that is taken.

03

Explanation

If a distribution is positively skewed,

Mode $>$ Median $>$ Mean

The majority of the values here are between ($\$200,00$ and $\$400,00$), with only a few exceeding $\$15$ million.

The distribution is therefore skewed to the right, indicating that housing values are positively skewed. Using the aforementioned principle, due to skewness, mean prices will shift to the right (towards $\$15$ million), and mean will be bigger than median.

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