Sale prices are arrayed from lowest to highest before analysis. What is the primary purpose?
Correct Answer
B) To reveal the distribution and locate the middle
Why this is correct: Sorting sale prices from lowest to highest (creating an ordered array) is a fundamental step in exploratory data analysis. It allows the appraiser to visually inspect the distribution, identify the median value directly, and spot clusters, gaps, and potential outliers. Why the other choices are wrong: The array does not show which sale closed most recently; that requires a separate date field. The mean is calculated from the values, not their order, so ordering does not make it more accurate. The array does not identify which sales require verification. Exam tip: Always array your data. It's the first step to understanding its shape and central tendency before calculating any statistics.
Why This Is the Correct Answer
Why this is correct: Sorting sale prices from lowest to highest (creating an ordered array) is a fundamental step in exploratory data analysis. It allows the appraiser to visually inspect the distribution, identify the median value directly, and spot clusters, gaps, and potential outliers. Why the other choices are wrong: The array does not show which sale closed most recently; that requires a separate date field. The mean is calculated from the values, not their order, so ordering does not make it more accurate. The array does not identify which sales require verification. Exam tip: Always array your data. It's the first step to understanding its shape and central tendency before calculating any statistics.
More Statistics Questions
A set of comparable sales has a mean of $250,000 and a standard deviation of $20,000. What is the coefficient of variation?
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