Question

5. You are looking for a home in three neighborhoods. In one neighborhood, the mean price is much smaller than the median price. In a second neighborhood the mean and median price are the same. In the third neighborhood, the mean price is larger than the median price. What does this information tell you about homes in the three neighborhoods? Would you be more inclined to buy a home in one neighborhood than the two others? Explain your reasoning. Exercise 21 in Section 6.1 is relevant to this topic. What effect might an outlier have on the five-number summary? Exercise 23 in Section 6.1 is relevant to this topic.

Answer 1