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# A certain builder is selling five homes for the following

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Joined: 02 Sep 2012
Posts: 180
Location: United States
Concentration: Entrepreneurship, Finance
GMAT Date: 07-25-2013
GPA: 3.83
WE: Architecture (Computer Hardware)
A certain builder is selling five homes for the following  [#permalink]

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29 Jul 2013, 06:03
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96% (00:51) correct 4% (00:53) wrong based on 199 sessions

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A certain builder is selling five homes for the following prices: $157,000,$168,000, $195,000,$235,000, and $256,000. If the price of the most expensive home is increased$10,000, which of the following statements best describes the change in the mean and the median of the home prices?

(A) The mean and the median will remain unchanged.
(B) The mean will remain unchanged but the median will increase.
(C) The mean will increase but the median will remain unchanged.
(D) The mean and the median will increase by the same amount.
(E) The mean and the median will increase by different amounts.
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Joined: 02 Sep 2009
Posts: 60460
Re: A certain builder is selling five homes for the following  [#permalink]

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29 Jul 2013, 06:08
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skamal7 wrote:
A certain builder is selling five homes for the following prices: $157,000,$168,000, $195,000,$235,000, and $256,000. If the price of the most expensive home is increased$10,000, which of the following statements best describes the change in the mean and the median of the home prices?

(A) The mean and the median will remain unchanged.
(B) The mean will remain unchanged but the median will increase.
(C) The mean will increase but the median will remain unchanged.
(D) The mean and the median will increase by the same amount.
(E) The mean and the median will increase by different amounts.

Old set = {157, 168, 195, 235, 256}.

New set = {157, 168, 195, 235, 266} --> the median (middle term) will remain the same and the mean will increase.

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A certain builder is selling five homes for the following  [#permalink]

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15 Nov 2017, 05:49
skamal7 wrote:
A certain builder is selling five homes for the following prices: $157,000,$168,000, $195,000,$235,000, and $256,000. If the price of the most expensive home is increased$10,000, which of the following statements best describes the change in the mean and the median of the home prices?

(A) The mean and the median will remain unchanged.
(B) The mean will remain unchanged but the median will increase.
(C) The mean will increase but the median will remain unchanged.
(D) The mean and the median will increase by the same amount.
(E) The mean and the median will increase by different amounts.

If not sure: Use small numbers that follow the prompt's pattern, namely, five increasing values.

Pick numbers that sum to a multiple of 5, so that the mean is easy to find. Pick four numbers, add them, and have the fifth number (greater than all others) make the total sum = multiple of 5.

The houses sell for:

$1,$2, $3,$4, $10 Median:$3
Mean: $$\frac{20}{5} = 4$$

The most expensive home increases by $5:$1, $2,$3, $4,$15
Median: $3 Mean: $$\frac{25}{5} = 5$$ Mean is increased, median is unchanged. Answer C _________________ SC Butler has resumed! Get two SC questions to practice, whose links you can find by date, here. Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has -- Margaret Mead Board of Directors Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 4850 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) Re: A certain builder is selling five homes for the following [#permalink] ### Show Tags 15 Nov 2017, 08:31 skamal7 wrote: A certain builder is selling five homes for the following prices:$157,000, $168,000,$195,000, $235,000, and$256,000. If the price of the most expensive home is increased $10,000, which of the following statements best describes the change in the mean and the median of the home prices? (A) The mean and the median will remain unchanged. (B) The mean will remain unchanged but the median will increase. (C) The mean will increase but the median will remain unchanged. (D) The mean and the median will increase by the same amount. (E) The mean and the median will increase by different amounts. No calculations required for this one as Median of 5 values will remain the same$195,000 , though the mean will increase, among the given options only (C) is correct!!
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Re: A certain builder is selling five homes for the following  [#permalink]

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15 Jan 2020, 08:59
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Re: A certain builder is selling five homes for the following   [#permalink] 15 Jan 2020, 08:59
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