Five homes were recently sold in Oxnard Acres. Four of the homes sold for $400,000, while the fifth home sold for $2.5 million. Which measure of central tendency best represents a typical home price in Oxnard Acres?
A)The mean or median.
B)The median or mode.
C)The mean or mode.
D)The midrange or mean.

Question

Quizplus · Accepted Answer

The median or mode best represents a typical home price in this scenario because the presence of an outlier ($2.5 million) would significantly skew the mean, making it not representative of the typical home price. The median, being the middle value when the prices are ordered, and the mode, being the most frequently occurring value, are less affected by outliers and thus provide a more accurate representation of a typical home price in this case.

Five Homes Were Recently Sold in Oxnard Acres