Question

When describing average home sales prices, explain why the median might be more appropriate measure of center than the mean. Are all home prices about the same in a city?

Answer 1

Q. When describing average home sale prices, explain why the median might be more appropriate measure of center than the mean. A. When looking for the average, we usually don't get the approximate price that we are looking for. What we are instead receiving is the rounded figure from the various other prices, rather than finding the "center" price. Whereas, in finding the median, we get the center price (since using median we find the number that is in the approximate middle). That will get us the "core" price for the selection of the homes instead of getting the rounded figure in average. Q. Are all home prices about the same in a city? A. There are no approximate answer for this. This topic is similar to when you are deciding where to start your next business. You need to look at the environment, education, communication etc., before deciding to buy a house. From my point, I would say that not all the houses in the city have the same price. You need to look most at the built-in architectural designs to have a higher price. However, if you look for a some-what luxury house, then you will have more of a lower price.