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Question

Part 1
A family is looking for a new home. The family is comparing homes in two towns. The median home price of Town 1 is ​$400 comma 000. In Town 2 the median home price is ​$342 comma 122. Based on the median home prices of each​ town, what inference can be​ made? What else might a person conclude from the median​ values?
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Part 1
Which of the following is a correct inference based on the median​ values?
A.The homes in Town 1 are more expensive.
The homes in Town 1 are more expensive.
B.The homes in Town 2 are more expensive.
The homes in Town 2 are more expensive.
C.The homes in Town 1 and Town 2 are similarly priced.
The homes in Town 1 and Town 2 are similarly priced.
Which of the following is a correct inference based on the median values?

Answer 1

Based on the median home prices provided:

• Town 1: $400,000
• Town 2: $342,122

The correct inference based on the median values is:

A. The homes in Town 1 are more expensive.

Additional Conclusion from Median Values:

While the median prices indicate that homes in Town 1 are more expensive, it's important to recognize that median values provide limited information. Other factors to consider include:

• The overall range of home prices in each town (e.g., presence of higher or lower-priced homes).
• The size and condition of homes.
• Local amenities and neighborhood characteristics.
• Market trends (whether home prices are rising or falling).
• The number of homes available for sale in each town.

Thus, while the median values suggest that Town 1 is more expensive, other qualitative and quantitative factors are also important in making a well-rounded decision regarding purchasing a home.