josh was preparing a speech about home real estate and wanted to give an idea how home prices had fallen in all seven recognized neighborhoods in his city. he found that the rounded percentage decreases were 3, 3, 5, 6, 7, 7, and 19. why would using the mean, or average, decrease be misleading?

Question

01-12-2022
Mathematics

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josh was preparing a speech about home real estate and wanted to give an idea how home prices had fallen in all seven recognized neighborhoods in his city. he found that the rounded percentage decreases were 3, 3, 5, 6, 7, 7, and 19. why would using the mean, or average, decrease be misleading?

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Yogeshkumari Yogeshkumari · Answer 1 · 2022-12-06T11:32:13+01:00

The mean of the decrease in rounded percentage of home is 7.14 which would used as misleading the about data as raw data very far away from 7.14.

As given in the question,

Given rounded percentage decrease in home price is:

3, 3, 5, 6, 7, 7, 19

Mean of the rounded percentage

= ( Sum of all the values)/ (Number of values)

= ( 3 + 3 + 5 + 6 + 7 + 7 + 19) / 7

= 50 /7

=7.1428

= 7.14

7.14 is very far away from 3 and 19.

Mean is not representing the correct information of the home price.

Using mean is misleading the correct information about percentage decrease.

Therefore, value of the mean is equal to 7.14 which mislead the decrease percentage.

Learn more about mean here

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