In a market study, what does a frequency distribution of sale prices show?
Correct Answer
B) How many sales fall into each price bracket
A grouped frequency distribution reports the number of observations within each stated sale-price interval. It describes the distribution of prices in that sample. It does not by itself supply closing chronology, an overall mean or a joint price-area relationship. Different interval choices can change the visual appearance; identifying meaningful submarkets requires further evidence.
Why This Is the Correct Answer
Option B is correct because a grouped frequency distribution reports the number of sales within each stated sale-price interval. It shows how the sample's prices are distributed across brackets. A histogram is simply a bar chart of these counts, with bar lengths proportional to the number of observations in each class.
Why the Other Options Are Wrong
Option A: The order in which the transactions closed
Option A, the order in which the transactions closed, describes a chronological listing of sales. A frequency distribution groups sales by price bracket and does not preserve closing order.
Option C: The mean price of all the brackets combined
Option C, the mean price of all the brackets combined, is a single measure of central tendency. A frequency distribution reports counts in each bracket rather than one overall average.
Option D: The relationship between price and living area
Option D, the relationship between price and living area, involves two variables and would be examined with a scatter plot or regression. A frequency distribution of sale prices looks at only one variable, price.
Frequency means how many
The word frequency answers the question how often, so a frequency distribution counts how many sales land in each price bracket.
How to use: Use this link between frequency and counting whenever you must identify what a frequency table or histogram displays.
Exam Tip
If an answer describes two variables together or a single summary number, it is not describing a one-variable frequency distribution.
Common Mistakes to Avoid
- -Confusing a frequency distribution with a time-series listing of sales
- -Treating a histogram as proof of distinct submarkets without further evidence
- -Assuming a frequency distribution shows the relationship between two variables
Concept Deep Dive
Analysis
This question tests what a frequency distribution of sale prices actually reports. A frequency distribution groups observations into intervals and counts how many fall into each interval. It describes how prices are spread across the sample, not timing, an overall average or a relationship with another variable.
Background Knowledge
A frequency distribution sorts data into classes, or intervals, and records how many observations fall into each. Displayed as a histogram, it helps an analyst see where prices concentrate and how widely they spread, though the choice of interval widths can change its visual appearance.
Real-World Application
In a market study for a subdivision, an appraiser groups 60 recent sales into $25,000 price brackets. The resulting table shows that most sales fall between two middle brackets, giving the appraiser a picture of the typical price range before further analysis of submarkets.
More Statistics Questions
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The assessment-to-sale ratios are 0.8, 0.85, 0.9, 0.92, 0.95, 0.98, 1.02, 1.05, 1.08, 1.1, 1.15, 1.2. Calculate COD as [average absolute deviation from the median ÷ median]×100. For even n, average the two middle ratios. Report the COD as a percentage to two decimals.
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Five assessment ratios are 0.90, 0.95, 1.00, 1.05 and 1.10. What is the coefficient of dispersion (COD)?
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Ratios are 0.90, 1.00 and 1.10. Define COD = 100 × mean absolute deviation from the median ÷ median, and sample COV = 100 × sample SD ÷ mean, with sample variance dividing squared deviations by n−1. Which pair results, to one decimal percent?