Travel and Transportation According to a report from TrueCar.com, the average transaction price…
Travel and Transportation According to a report from TrueCar.com, the average transaction price for a new vehicle reached a record high in August 2013 of $31,252.7 A transaction price of a vehicle is the out-the-door-price, which includes the price of the vehicle, discounts, add-ons, taxes, and license fees. A random sample of new vehicles purchased in August 2014 was obtained, and the transaction price of each was recorded. Assume that the underlying distribution of newvehicle transaction price is continuous.
a. Is there any evidence to suggest that the median new vehicle transaction price has increased (from ($31,252)?
b. Why is the median, rather than the mean, new-vehicle transaction price a better measure of the center of this distribution?