Question

A small, upscale boutique examines the income of 10 random households to determine if the community will be a good location for a store. Four of the households have an income between $30,000 - $55,000. Five of the households have an income between $70,000 - $100,000. One household has an income of over $700,000. For the business to consider building a new store, the typical household income must be at least $100,000. The average income in this community is $143,000. However, the boutique decides not to build a store there. What is the LIKELY reason that the boutique chooses not to locate in the community?
A) The data produces an exaggerated median because of an outlier.
B) The data produces an exaggerated typical income because of an outlier.
C) With a typical income of $143,000, the typical household makes too much money.
D) The boutique will not locate a store in a community where everyone does not make at least $100,000.

Answer 1

The correct answer for the question that is being presented above is this one:  "D) The boutique will not locate a store in a community where everyone does not make at least $100,000. " The likely reason that the boutique chooses not to locate in the community is that the boutique will not locate a store in a community where everyone does not make at least $100,000.