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?
He should use the mean because it is in the center of the data.
He should use the median because it is in the center of the data.
He should use the median because there is an outlier that affects the mean.
He should use the mean because there are no outliers that affect the mean.
Answers
Jasper should use the median to make an inference about the house values in his neighborhood.
What is Addition?
The process of combining two or more numbers is called the Addition. The 4 main properties of addition are commutative, associative, distributive, and additive identity.
We have been given the house values in Jasper's neighborhood as:
House Value
A $150,000
B $175,000
C $200,000
D $167,000
E $2,500,000
Now, We can see the value of house E is very high from other houses in Jasper's neighborhood.
And, The value of house E will make the mean house value above the center of the data as House E is an outlier for our given data.
Since, We know that;
The median of a data set with an outlier is not affected by the value of outlier,
Therefore, Jasper should use the median to make an inference about the house values in his neighborhood.
Thus, Jasper should use the median to make an inference about the house values in his neighborhood.
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In this case, the outlier / 'extreme value' is E. We can see that most of the house prices are between $150,000 to $200,000, but E is much higher, therefore making it an outlier.
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