What is the median value of the following sale prices: $310,000, $285,000, $295,000, $325,000, and $305,000?
Correct Answer
D) $305,000
Why this is correct: The median is the middle number in an ordered dataset. First, arrange the five prices in ascending order: $285,000, $295,000, $305,000, $310,000, $325,000. With five values, the third (middle) one is $305,000. Why the other choices are wrong: "$295,000" is the second value in the ordered list, not the median. "$310,000" is the fourth value. "$304,000" is the arithmetic mean (average), calculated as ($310,000 + $285,000 + $295,000 + $325,000 + $305,000) / 5 = $1,520,000 / 5 = $304,000, but the question asks for the median, not the mean. Exam tip: Always order the data first. For an odd count of numbers, the median is the exact middle. For an even count, it's the average of the two middle numbers.
Why This Is the Correct Answer
To find the median, arrange the values in ascending order: $285,000, $295,000, $305,000, $310,000, $325,000. With five values (odd number), the median is the middle value, which is the third position. The value at position 3 is $305,000, making A the correct answer.
Why the Other Options Are Wrong
Memory Technique
Remember 'Median = Middle' - arrange values like soldiers in height order, then pick the one standing in the center position.
Exam Tip
Always arrange values in ascending order first, then count to the middle position for odd numbers of values.
Common Mistakes to Avoid
- -Confusing median with mean (average)
- -Not arranging values in order before finding the middle
- -Selecting the wrong position when counting to the middle value
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