Question

Sally is interested in taking a job in a city in which she's not familiar with the cost of living. She is especially concerned about the cost of housing and is interested in the average cost of a three bedroom home. Which of the following averages will be most influenced by three bedroom homes owned by millionaires?a. Mean
b. Median
c. Mode
d. None of the above; all will be equally influenced.

Answer 1

Answer:

a. Mean

Step-by-step explanation:

We have been given that the Sally is interested in taking a job in a city in which she's not familiar with the cost of living. She is especially concerned about the cost of housing and is interested in the average cost of a three bedroom home.

We know that in a normal distribution all central tendencies (mean, mode, median) are equal.

When a very large or very small valued data point is added to data set, mean is mostly affected by that outlier.

We know that mode of a data set is the point that appears at-most in the data set, so outliers doesn't affect mode.

Median of a data set is less affected by outliers.

The price of the three bedroom homes owned by millionaires will be greater than prices of houses owned by people in the neighborhood.

Therefore, mean will be most influenced by three bedroom homes owned by millionaires.