Question

The U.S. Department of Housing and Urban Development​ (HUD) uses the median to report the average price of a home in the United States. Why do you think HUD uses the​ median?A. HUD uses the median because the data are bimodal. B. HUD uses the median because the data are skewed right. C. HUD uses the median because the data are symmetrical. D. HUD uses the median because the data are skewed left.

Answer 1

Answer: B. HUD used the median because the data are skewed right.

Step-by-step explanation: If you use the mean, houses that are extremely expensive (which are generally a few) can affect the average and show house values that are not realistic (most likely higher than the real average). The median, however, is a value of equal probability. As an example, 4 houses are for sale at $100,000, 200,000 and 1,000,000. The average = $433,000. The median is $200,000 (a more realistic value).