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Mean, Median, Mode

Suppose you were a real estate agent and a client asked you about the typical home in a subdivision. Being the intelligent agent you are, you have gathered the following information on each house in the subdivision: price, square footage, # bedrooms, # bathrooms, and the # people in each household. What statistic would you use to describe each aspect of the "typical" home? You might use the MEAN for price, the MEDIAN for square footage, the MODE for ..., or you might use one statistic for all five. Whatever you decide, justify your answer. Include, in your answer, how measures of dispersion would enter in to your decision to use a certain statistic. Try to imagine the type of answers you would be giving your client based on your selections for a subdivision that has 100 homes with a wide variety of sizes and prices.

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Price: Median would be a good metric for price. This is because the price of the house can vary substantially. Just one outlier can skew the mean price upward or downward. Thus Median would be a good measure of the central tendency. Mode is also not good as there can be several houses that are priced lower or higher than a 'typical' house.

Square Footage: Median would be a good metric for square footage as ...

Solution Summary

The solution is very easy to understand and concise. It is an excellent response for students who want to understand the concepts and then use the same concepts to solve similar problems in the future. Overall, an excellent response. The solution provides the necessary steps which are easy to follow.