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Problem-Solving and Data AnalysisMediumWhich measure best represents a typical value

Problem-Solving and Data Analysis practice question

Six houses on a street sold for $50,000, $55,000, $60,000, $60,000, $75,000, and $300,000. Which statement is true?

  1. A. The median, $60,000, is a better measure of a typical price than the mean, $100,000, because one very high price inflates the mean.Correct
  2. B. The mean, $100,000, is a better measure of a typical price than the median.
  3. C. The mean and median are equal.
  4. D. The mode is $300,000.

Answer: A. The median, $60,000, is a better measure of a typical price than the mean, $100,000, because one very high price inflates the mean.

Mean = 600,000/6 = 100,000; median = 60,000. Five of six houses sold for under $80,000, so the median is more typical.

Why the other answers are wrong

B. The mean, $100,000, is a better measure of a typical price than the median.
The mean is pulled far above five of the six prices.
C. The mean and median are equal.
100,000 ≠ 60,000.
D. The mode is $300,000.
The mode is $60,000 (it appears twice).

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