SOLUTION: A real estate agent is collecting rental rates in a city for a client. The data represents the monthly rate for rent of 15 apartments in the same city. {$800, $850, $900, $950, $1

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Question 1210253: A real estate agent is collecting rental rates in a city for a client. The data represents the monthly rate for rent of 15 apartments in the same city.
{$800, $850, $900, $950, $1,000, $1,050, $1,100, $1,200, $1,250, $1,300,
$1,350, $1,400, $1,500, $1,550, $1,600 }
The client asked the agent what the typical monthly payment for rent is in the city.What measure should the real estate agent use to describe the data and answer the client’s question?
 mean
 range
 median
 interquartile range
Answer by math_tutor2020(3817)   (Show Source): You can put this solution on YOUR website!

Answer: Mean (choice A)


Explanation

You should find the following five number summaryI'll let the student do the scratch work.

Then,
IQR = interquartile range
IQR = Q3 - Q1
IQR = 1400-950
IQR = 450

And
LF = lower fence
LF = Q1 - 1.5*IQR
LF = 950 - 1.5*450
LF = 275
UF = upper fence
UF = Q3 + 1.5*IQR
UF = 1400 + 1.5*450
UF = 2075

If x is a value such that LF < x < UF, then x is not considered an outlier.
Specifically in this problem, if 275 < x < 2075, then x is not an outlier.
Note that min = 800 and max = 1600. Both of which are in the interval mentioned.
Therefore all values in the set are not considered outliers.

Since we do not have outliers, we can use the mean as the measure of center.
If there were outliers, then you should use the median.

The range and interquartile range are never used as a measure of center.
They measure how spread out the data set is.
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