Question

A. The local real estate reported a sampling of house prices in a certain area as: $56,000; $78,000; $64,000; $190,000; $60,000; $74,000; $56,000. What would be the best, most realistic house price to report, and why?
the Mean, the Median, the mode

A deviation value is just how far is a single value from the mean. This is several subtraction problems.

b. For the series of values 12, 15, 17, 22, 24:
Calculate the Mean and show what the deviations from the Mean would look like. A deviation value is just how far is a single value from the mean. This is several subtract problems and different from standard deviation.

Answer 1

(a)

Correct option:

the Median

Explanation: It is seen that $190,0000 is an outlier. The mean and mode are much affected by outlier, where the Median is not much affected by outlier. The Median gives more realistic measure of Central Tendency when outlier is present in the data.

(b)

(i) Variance:

From the given values:

Sample mean =

x	x -	(x - )2
12	- 6	36
15	- 3	9
17	- 1	1
22	4	16
24	6	36
Total =		98

Variance (s²) is given by:

So,

Variance (s²) = 24.5

(ii) Standard Deviation (s) is given by:

(iii) Mean Absolute Deviation (MAD) is got as follows:

From the given values:

Sample mean =

x	x -
12	- 6	6
15	- 3	3
17	- 1	1
22	4	4
24	6	6
Total =		20

Mean Absolute Deviation (MAD) is given by:

So,

MAD = 4