Homework: HW 2: Chapter 3 Score: 0 of 3 pts 3.1-2.9 20, 6 (5 complete) HW Score:
ID: 1150626 • Letter: H
Question
Homework: HW 2: Chapter 3 Score: 0 of 3 pts 3.1-2.9 20, 6 (5 complete) HW Score: 45 t's census bureau, in February 2010, the median sales price of new houses was $220,500 and the mean sales price was $282600 a. Interpret the median sales price b. Interpret c. Discuss the shape of the distribution of the price of new houses the mean sales price A. Half of the prices for a new house are smaller than or equal to $282,600, and the other half the prices for a new house are larger than or equal to $282,600 O B. Half of the prices for a new house are smaller than $282,600, and the other half of the prices for a new house are larger than $282,600 O C. Half of the prices for a new house are smaller than $220,500, and the other half of the prices for a new house are larger than $220,500 O D. Half of the prices for a new house are smaller than or equal to $220,500, and the other half the prices for a new house are larger than or equal to $220,500Explanation / Answer
median Sales price = $ 220,500 and the mean sales price is $ 282,600.
a) Median sales price tell us that what is the exact price of the middle observation of a sample. It means that half of the house which stands left of the median is lower than 220,500 and the other half which stands on the right side of the median is higher than 220,500.
b) The mean sales price average out all the new houses, considering all the extremes (lower or upper) and come up with a mean price. Mean can be very baised as it takes into consideration all the extremes.
c) A normally distributed curve will have mean & median in the middle. But over here we see that the mean is higher than median ( hence mean comes to the right of median) which means that the distribution is negatively skewed with a longer tail on the left side
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.