What is the median value of the following sale prices: $310,000, $285,000, $295,000, $325,000, and $305,000?
Correct Answer
A) $305,000
The median is the middle value when data is arranged in order. Arranged: $285,000, $295,000, $305,000, $310,000, $325,000. The middle value is $305,000.
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
Option B: $295,000
$295,000 is the second value in the ordered list, not the middle value. This would be incorrect as it represents the position below the median in this five-value dataset.
Option C: $310,000
$310,000 is the fourth value in the ordered sequence, which is above the median position. This represents the second-highest value, not the middle value needed for the median calculation.
Option D: $304,000
$304,000 appears to be an attempt to calculate the mean (average) but is incorrect. The actual mean would be $304,000 ($1,520,000 ÷ 5), but the question asks for median, not mean.
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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