How you calculate Median sales price vs Average sales price.?
Quick answer: Median price is half are below, half are above Average price: All sold prices are added together into a sum; the sum is then divided by the number of houses that sold. An answer to an earlier Trulia Thread with the same question: http://www.trulia.com/voices/Financing/Read_detail_seciton_b The big difference between the median and mean is illustrated in a simple example: 1. Suppose 19 workers and 1 billionaire are in a room. Everyone removes all money from their pockets and puts it on a table. Each worker puts $5 on the table; the billionaire puts $1 billion there. The total is then $1,000,000,095. If that money is divided equally among the 20 people, each gets £50,000,004.75. That amount is the average amount of money that the 20 people brought into the room. But the median amount is $5, since one may divide the group into two groups of 10 people each, and say that everyone in the first group brought in no more than $5, and each person in the second group brought in no l
Quick answer: Median price is half are below, half are above Average price: All sold prices are added together into a sum; the sum is then divided by the number of houses that sold. An answer to an earlier Trulia Thread with the same question: http://www.trulia.com/voices/Financing/Read_detail_seciton_b The big difference between the median and mean is illustrated in a simple example: 1. Suppose 19 workers and 1 billionaire are in a room. Everyone removes all money from their pockets and puts it on a table. Each worker puts $5 on the table; the billionaire puts $1 billion there. The total is then $1,000,000,095. If that money is divided equally among the 20 people, each gets £50,000,004.75. That amount is the average amount of money that the 20 people brought into the room. But the median amount is $5, since one may divide the group into two groups of 10 people each, and say that everyone in the first group brought in no more than $5, and each person in the second group brought in no l
