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House prices The mean and median selling prices of existing single-family homes sold in September 2016 were \(276,200 and \)234,200. Which of these numbers is the mean and which is the median? Explain your reasoning.

Short Answer

Expert verified

Mean is $276,200 and median is $234,200.

Step by step solution

01

Step 1. Given information.

The given values are $276,200 and $234,200.

02

Step 2. Identify the mean and median

We expected the selling price distribution to be skewed to the right because we expect a few houses to sell for an unusually high price (while the rest houses are all in the same price range).

Then the mean must be higher than the median in a right-skewed distribution because the mean is influenced more by the data set's abnormally big data values.

As a result, the mean is the highest figure, and the median is the lowest.

$276,200 is the Mean and $234,200 is the Median.

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