Chapter 10.1, Problem 19HP

To determine

To Find: Whether the mean, median and mode is the most useful average for the home buyers.

Answer to Problem 19HP

The median gives the average values for the prices thus it makes more sense to use the median.

Explanation of Solution

Given:

The guide lists the average home prices for the counties in the state.

Calculation:

All the home prices are very precise to the amount. So the chances that the there is any repeated values is unlikely. Thus, it rules out the modes.

There must be a variety of values in which some of the homes are very expensive.

Consider the data set is,

  $\left\{150000,150000,160000,250000,10000000\right\}$

The above that is the price for the 5 random houses. The mean of the above data set is $\$2,142000$ and the median is $\$160000$

As, the median gives the average values for the prices thus it makes more sense to use the median.