Tom Is Trying to Summarize the Housing Values in His

question 16

Multiple Choice

Tom is trying to summarize the housing values in his neighborhood.There are ten houses in total which fall into the following value ranges: $$\begin{array} { lc } \hline \text { Value } & \text { Number of Houses } \\\hline \$ 200,000 \text { to } \$ 300,000 & 1 \\\$ 700,000 \text { to } \$ 800,000 & 3 \\\$ 800,001 \text { to } \$ 850,000 & 5 \\\text { Over } \$ 5,000,000 & 1\\\hline\end{array}$$ Which summary measure is most appropriate to summarize this data?

• A)mean
• B)median or mode

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Definitions:

Average Product

The output per unit of input, calculated by dividing total production by the number of units of input.

Marginal Product

The additional output that is produced by adding one more unit of a particular input, keeping other inputs constant.

Short-Run Curve

Refers to a period in economics during which at least one factor of production is fixed, affecting production and cost decisions.

Marginal Product

The change in output resulting from employing one more unit of a particular input while holding all other inputs constant.