Question

Sebastian got estimates from 7 companies for his kitchen remodel: $ 27,500 ; $31,000 ; $36,000 ; $92, 000; $29,000 ; $30,500 ; $28,500. Which measure of center best describe the data, is it the mean or the median?

Answer 1

We have been given that Sebastian got estimates from 7 companies for his kitchen remodel: $ 27,500 ; $31,000 ; $36,000 ; $92,000; $29,000 ; $30,500 ; $28,500. We are asked to find the best measure of center for the given data.

We can see that our given data set has a large valued data point that is $92,000.

We know that mean is very much affected by large valued outliers. The data point $92,000 will increase the mean. Therefore, mean is not a best measure of center for given data.

We know that median is very less affected by outliers, therefore, median will be best measure of center for the given data.