Question

You are considering selling your home. You consult with an agent who gives you the asking prices of five homes (comps) in your area: $165,000, $188,000, $175,000, $150,000 and $400,000. The $400,000 is an outlier so you will not include it in your evaluation. In determining a reasonable asking price, what is the mean of the four remaining comps?

Answer 1

Answer:

$169,500

Step-by-step explanation:

Mean is the average of the numbers. It is expressed as the ratio of the sum of the numbers to its sample size.

Mean = sum of the amounts/sample size

Sum of the amounts = $165,000 + $188,000 + $175,000+$150,000

Sum of amounts = $678,000

Sample size = 4 (excluding the outlier)

Mean = $678,000/4

Mean = $169,500

Hence the mean of the four remaining comps is $169,500