A real estate agent is marketing a neighborhood of 10 homes. Nine of the homes are valued at approximately $200,000 each, while one newly built mansion is valued at $3,200,000. The agent advertises the 'average home value' in the neighborhood as $500,000. Which statement best evaluates the agent's use of this figure?

Example of the Mean's Sensitivity to Outliers

In a highly skewed distribution, how does the presence of extreme scores typically affect the mean?

In a distribution of reaction times, the mean will typically be more significantly shifted by the presence of a few extreme outliers than the median will.