Question

Jasper is using the following data samples to make a claim about the house values in his neighborhood:

|House| Value |
| A | $150,000 |
| B | $175,000 |
| C | $200,000 |
| D | $167,000 |
| E | $2,500,000|
Based on the data, should Jasper use the mean or the median to make an inference about the house values in his neighborhood?
A. He should use the mean because it is in the center of the data.
B. He should use the median because it is in the center of the data.
C. He should use the median because there is an outlier that affects the mean.
D. He should use the mean because there are no outliers that affect the mean.

Answer 1

I assume you know what mean and median are

You want to use the one that isn't affected by any outliers (extremes in values from your data)
Else you have a higher value that doesn't represent the whole neighborhood

Answer 2

Skewed data = use median and IQR because they contain statistical resistance
Less variation = mean and SD

You can mathematically calculate for outliers by

\(u≥1.5IQR + Q3\)
\(v≤Q1 - 1.5IQR\)

But in this case it's pretty observable.

Answer 3

So the answer is C

Answer 4

Ya