The Measures of Central Tendency are Mean Median and Mode Th

The Measures of Central Tendency are Mean, Median, and Mode. There is a reason they are always listed together because they each tell you something. For example, in an academic situation, when grading according to the Normal Curve, an A might be within one standard deviation of the mean. A B might be within one to two standard deviations of the mean. When one sees the prices of homes in a particular area, Realtors usually use the Median Price. Why do you think that is?

Solution

Ans.

The median price of homes is midway point of all homes sold at market prices over a period of month or a year.The median price is price in the middle of data set where sale price of homes are arranged from low to high, where, median price is the amount at which half of the homes are sold at high price and other half at lower prices. For example if 51 homes were sold in a month the median price would be home price in middle i.e that has 25 home prices above it and 25 home prices below it. Median price gives an idea about price of real estate in certain area and area\'s performance over recent months and years. Median price is used because it reflects sample size being used such that it is more accurate indicator of the market.The problem of median is the large differences in median price of area every month if there has been large amount of more expensive or less expensive homes sold in a month.