Question

A subdivision of 50 houses has a mean price of $300,000, a median of $260,000, and a standard deviation of $30,000. a new house is then built in the subdivision that has a price of $800,000. what is the new mean?

Answer 1

A subdivision of 50 houses has a mean price of $300,000, a median of $260,000, and a standard deviation of $30,000. a new house is then built in the subdivision that has a price of $800,000. what is the new mean?

Solution: We are given that the mean of 50 houses = $300,000.

Therefore, the total price of 50 houses = 50 x $300,000 = $15,000,000

Now if one new house is built and cost of the new house = $800,000

Now the total price of 51 houses $15,000,000  + $800,000 = 15,800,000

Therefore, the new mean of 51 houses is:

$\frac{15800000}{51}=$$309803.92$