Question

The prices of 7 race cars are 126,000 140,000 140,000 180,000 400,000 400,000 819,000 The mean is $315,000?
the median is 180,000

which of these measures of central tendency best represents the value of the seven race cars and why??

Answer 1

Both the median and mean values are correct. The mean is usually a more meaningful because it is the average car sales price. It will give you the minimum average error when comparing the price of a car selected at random.

Answer 2

I think the median is better because the 819,000 skews the mean high. We could argue about this for quite a while :)