14. One weekend a salesperson sold cars for \( \$ 22,000 ; \$ 20,000 ; \$ 8000 ; \$ 22,000 \); and \( \$ 24,000 \). What is the outlier in this set of data? What effect does the outlier have when interpreting the mean price of the cars sold?
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In this dataset, the car sold for \( \$ 8000 \) stands out as the outlier. This price is significantly lower than the other four sales, which are clustered between \( \$ 20,000 \) and \( \$ 24,000 \). Outliers can skew the mean, pulling it down and creating a misleading impression of the average sales price. Calculating the mean without considering the outlier may suggest that the salesperson's average sale is much lower than it actually is. To better analyze the sales data, it might be useful to calculate the median price, which provides a clearer measure of central tendency that isn't affected by extreme values like the outlier. In this case, remove the \( \$ 8000 \) sale from the calculation, and you'll find the median reflects the typical sales prices much more accurately, giving a better understanding of the salesperson's performance.
