Question

an electronics store placed an ad in the newspaper showing flat - screen tvs for sale. the ad says our flat - screen tvs average $700. the prices of the flat - screen tvs are $1499, $699, $700, $1099, $1399, and $700.
a. find the mean, median, and mode of the prices.
b. which measure is the store using in its ad? why did they choose it?
c. which measure would a consumer want to see advertised? explain.

1. the mean is $ (round to the nearest cent as needed.)

the median is $ (round to the nearest cent as needed.)
the mode is $
b. which measure is the store using in their ad? why did they choose it?
the store is using the because it
c. which measure would a consumer want to see advertised? explain.
a. a consumer would want to see the mode advertised because it is the most frequently occurring price, which means it is the price they are most likely to pay.
b. a consumer would want to see the mode advertised because the mean and the median of a data set might not be data values in that set. the mode is always one of the exact data values.
c. a consumer would want to see the median advertised because its resistance to outliers means that the median gives the most realistic information.
d. a consumer would want to see the mean advertised because the mean is what most people think of when they think of an average price.

Explanation:

Step1: List all given prices

Prices: $\$949, \$1449, \$900, \$700, \$1099, \$1399, \$700$

Step2: Calculate the mean

Sum the prices, divide by count.
$\text{Mean} = \frac{949 + 1449 + 900 + 700 + 1099 + 1399 + 700}{7} = \frac{7196}{7} \approx \$1028.00$

Step3: Calculate the median

Sort prices, find middle value.
Sorted prices: $\$700, \$700, \$900, \$949, \$1099, \$1399, \$1449$
Middle value (4th term): $\$949.00$

Step4: Identify the mode

Find most frequent price.
$\$700$ appears twice, others once. Mode = $\$700$

Step5: Analyze store's ad choice

Store uses mode ($\$700$) to appear cheaper.

Step6: Analyze consumer's preferred measure

Consumer prefers median for reliable central value.

Answer:

a. The mean is $\$1028.00$
The median is $\$949.00$
The mode is $\$700$
b. The store is using the mode because it is the lowest value, making TVs seem more affordable to attract customers.
c. C. A consumer would want to see the median advertised because its resistance to outliers means that the median gives the most reliable information.