Several years ago, the average price for homes sold in my neighborhood was $200,000. Now homes are selling for an average of $145,000 (presumably due to the failing economy and people losing their jobs - the unemployment rate is 12.5 because of job loss).
How do I calculate the mean price of houses over this time period?
How do I calculate the median price of houses over this time period?
Do the mean and median prices differ from one another?
Originally, the average price of houses was 200K. Now it is 145K. These are your original averages (remember, an average is a mean).
To calculate a mean, you add all of your values together and then divide that sum by the number of values you added. In this case, you have two values (200K and ...
This solution explains how to identify the mean and the median price of houses over several years. It explains the difference between the mean and the median, and how they are related to one another. The solution demonstrates how to calculate the mean and the median for a data set with only two scores.