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Chapter 1: Q 71. (page 49)

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

Short Answer

Expert verified

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

Step by step solution

01

Given information

Given data :

Houses are ranging from $200,000to$500,000

Houses on the water cost : $15million

02

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.

03

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 ($15million) is shown. As a result, the distribution will be skewed to the right.

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