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Chapter 1: Q. 82. (page 53)

You look at real estate ads for houses in Naples, Florida. There are many houses ranging from \(200,000 to \)500,000 in price. The few houses on the water, however, are priced 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. single-peaked.

e. too high.

Short Answer

Expert verified

The correct option is (c)

(c) Skewed to the right

Step by step solution

01

Given information. 

The few houses on the water, however, are priced up to $15 million.

02

Step 2. The price distribution of houses will be

Given: a few houses are significantly more expensive than the majority of other houses.

This means that the highest bars should be on the left, with a tail of small bars on the right.

The distribution is then referred to as right-skewed.

As a results:

Skewed to the right

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Part (a). Explain what the dot above −3 represents.

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