Question

the department of housing and urban development (hud) uses the median to report average home prices in the united states. why do they use the median?
○ hud uses the median since the distribution of home prices is symmetric.
○ hud uses the median since the distribution of home prices is skewed to the right and the mean does not adequately represent the average price of a home.
○ hud uses the median since the distribution of home prices is skewed to the left and the mean does not adequately represent the average price of a home.

Explanation:

The distribution of home - prices often has a right - skew due to a small number of very expensive homes. The mean is pulled in the direction of the skew and may not represent the 'typical' home price. The median, which is the middle value when data is ordered, is less affected by extreme values and gives a better representation of the central tendency of home prices in this case.

Answer:

HUD uses the median since the distribution of home prices is skewed to the right and the mean does not adequately represent the average price of a home.