Q 71. - The Practice of Statistics for AP

Question

You look at real estate ads for houses in Naples, Florida. There are many houses ranging from $\backslash (200,000 \mathrm{to} \backslash )500,000$ in price. The few houses on the water, however, have prices up to $\$15 million$. The distribution of house prices will be

(a) skewed to the left. 

(b) roughly symmetric. 

(c) skewed to the right. 

(d) unimodal. 

(e) too high. 

Step-by-Step Solution

Answer

The correct option is (c) skewed to the right.

Step 1: Given information

Given data :

Houses are ranging from $\$200,000 \mathrm{to} \$500,000$

Houses on the water cost : $\$15 \mathrm{million}$

Step 2: Concept

A unimodal distribution is one with only one distinct peak. The values first rise to a single greatest point, after which they begin to fall. The mean, mode, and median of a symmetrical distribution are all the same. A skewed distribution is one that is not symmetrical.

Step 3: Explanation

The residences range in price from $\$200,000$ to $\$500,000,$ with only a couple near the water selling at more over $\$15$ million. On the right, the extreme value $(\$15 million)$ is shown. As a result, the distribution will be skewed to the right.