Housing prices in a country where 25% of the houses cost below $350,000, 50% of the houses cost below $450,000, 75% of the houses cost below $1,000,000 and there are a meaningful number of houses that cost more than $6,000,000. The distribution is expected to be:

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Mathematics

Cristopher Liu

14 August, 00:59

Housing prices in a country where 25% of the houses cost below $350,000, 50% of the houses cost below $450,000, 75% of the houses cost below $1,000,000 and there are a meaningful number of houses that cost more than $6,000,000. The distribution is expected to be:

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Gunner · Answer 1

Housing prices in a country where 25% of the houses cost below $350,000, 50% of the houses cost below $450,000, 75% of the houses cost below $1,000,000 and there are a meaningful number of houses that cost more than $6,000,000. The distribution is expected to be:

Answer: The distribution is expected to be right skewed.

Because the 50% of the houses cost below $450,000, which means the median house costs is approximately $450,000. And we see there are meaningful number of houses that cost more than $6,000,000. Which clearly indicates that the data will be right skewed.

In the right skewed distribution, the mean is greater than median and median is greater than mode. A right-skewed distribution has a long right tail. Right-skewed distributions are also called positively-skewed distributions there is a long tail in the positive direction on the number line.