Nine observed sale prices lie between $240,000 and $260,000 and one is $95,000. Which listed central measure is most resistant to the low extreme when summarizing these ten observations?
Correct Answer
D) The median, because it is resistant to an extreme observation
The fifth and sixth ordered prices both lie in the $240,000–$260,000 cluster. Their average is the median and is resistant to the low extreme. The mean uses the $95,000 magnitude and is pulled downward. Range is spread, and repeated values supporting a unique mode were not established. This is a summary of these prices, not an independent subject-value conclusion.
Why This Is the Correct Answer
The fifth and sixth ordered prices both lie in the $240,000–$260,000 cluster. Their average is the median and is resistant to the low extreme. The mean uses the $95,000 magnitude and is pulled downward. Range is spread, and repeated values supporting a unique mode were not established. This is a summary of these prices, not an independent subject-value conclusion.
More Statistics Questions
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Compared with analyzing one matched sale pair for one feature, what can a suitably specified multiple regression do?
The base-period median sale price is $400,000 and the current-period median is $460,000. Compute the price relative defined as current ÷ base, as a decimal to three places.
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Assessment-to-sale ratios are 0.94, 0.96, 0.98, 1, 1.01. Compute the arithmetic mean. Report as a decimal ratio to three places.
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A sale price is $450,000. The sample mean is $420,000 and the standard deviation is $15,000. What is the z-score of this sale price, to two decimals?
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A set of adjusted sale prices has a mean of $250,000 and a standard deviation of $20,000. What is the coefficient of variation, and why might it be preferred to the standard deviation?