Question

You look at real estate ads for houses in Sarasota, Florida. Many houses have prices

from \(200,000 to \)400,000. The few houses on the water, however, have prices up to

$15 million. Which of the following statements best describes the distribution of home

prices in Sarasota?

a. The distribution is most likely skewed to the left, and the mean is greater than the

median.

b. The distribution is most likely skewed to the left, and the mean is less than the

median.

c. The distribution is roughly symmetric with a few high outliers, and the mean is

approximately equal to the median.

d. The distribution is most likely skewed to the right, and the mean is greater than the

median.

e. The distribution is most likely skewed to the right, and the mean is less than the

median.

Short answer

The correct option is:

d. The distribution is most likely skewed to the right, and the mean is greater than the median.

Step-by-step solution

Given information

We have been given four options from which we have to select the correct one.

Explanation

Because the few extreme housing values are on the right side of the distribution, it is biassed to the right. The mean is bigger than the median because it is more affected by extreme values (further to the right).Therefore,The distribution is most likely skewed to the right, and the mean is greater than the

median.