Question

2. Five houses in a neighborhood were recently sold.

Answer 1

2. Five houses in a neighborhood were recently sold.

Their sale prices were: $110,000, $90,000, $250,000, $100,000 and $150,000

The average selling price in this neighborhood is $140,000.
Now, the real estate agency decides to widen the sample set by including a house that was sold over 3 years ago in a new development that borders this neighborhood. The selling price was $1,000,000. The new average price is $283,333.33
Is it accurate for the real estate agent to advertise that the average selling price for houses in the neighborhood is $283,333.33? Is this new sample set representative of the population?

Answer 2

Nope. That house was sold over 3 years ago and only 1/6 houses were sold at that price and the rest are lower, so it doesn't represent the population

Answer 3

thanks