1 multiple choice 5 points\nin a sample of 60 households, one house is worth $2,500,000. half of the rest…

1 multiple choice 5 points\nin a sample of 60 households, one house is worth $2,500,000. half of the rest are worth $280,000, and all the others are worth $315,000. which is the better measure of the \center\: the mean or the median?\nmad\nmean\nmedian\nrange

1 multiple choice 5 points\nin a sample of 60 households, one house is worth $2,500,000. half of the rest are worth $280,000, and all the others are worth $315,000. which is the better measure of the \center\: the mean or the median?\nmad\nmean\nmedian\nrange

Answer

Explanation:

Step1: Analyze the data distribution

We have 60 households. One house is worth $2,500,000. The number of remaining households is $60 - 1=59$. Half of the 59 (i.e., $\lfloor\frac{59}{2}\rfloor = 29$) are worth $280,000$ and the other 30 are worth $315,000$. The $2,500,000$ value is an out - lier.

Step2: Recall the effect of outliers

The mean is affected by outliers. Since we have a large outlier ($2,500,000$), it will pull the mean towards it. The median is the middle - value when the data is arranged in ascending or descending order and is not affected by outliers.

Answer:

C. Median