Just the other day I got a phone call from a reader of our blog. They were wondering about our use of median values as opposed to average values in our post on Land and Acreage for sale in the Augusta, GA market. I considered giving a more detailed description in the post but as it was long enough I decided it was probably unnecessary. In retrospect, it was an error to omit the explanantion of what it is and why I used it. I’m going to use this post to correct that error.

The short answer to what is the median value, is that it is the value that is the exact middle. In statistics, it is the middle number in a given sequence of numbers. It is also sometimes referred to as the 50th percentile. In other words, in any given set of data values, it is the value at which exactly half of the data values are beneath the median value and exactly half of the data values are above the median value.

In a data set with an odd number, it is simply the middle data value. For example, if your data set is 1, 2, 3, then the median value is 2. If you have an even number in your data set such as 1, 2, 3, 4, then the median is calculated by getting the average of the two middlemost data values. For the data set of 1, 2, 3, 4, you take the two middlemost values and add them and then divide by two. Thus you get: (2+3)/2. This gets you the median value here of 2.5.

So why did I use the median value in this post dealing with land sales prices and days on market (DOM) as opposed to averages? Simply because it reduces the likelihood of the information becoming misleading due to outliers or data values that are grossly out of the norm. Let me explain using an example.

Let us suppose that you are opening a new company selling widgets, and you are attempting to price your widgets competitively in your market. You have a data set of the sales prices of some competitiors and what they are selling their widgets for. It is as follows:

Recent Competitor’s Sales Prices of Widgets |
||||||||||||

7 | 5 | 6 | 5 | 9 | 8 | 8 | 7 | 9 | 5 | 6 | 24 | 39 |

We’re assuming here all widgets are selling in dollars. If one takes the average, or mean, of these data values, we come up with a widget value of $10.62. Is this really an accurate representation of what widgets on the whole are selling for? Would your price at $10.62 be competitive? Not really. If you priced your widgets at $10.62 you would be more expensive than almost everyone with the exception of the last two in this data set. We are dealing with limited data here as one would in looking at land in an MLS. Those final two may be selling gold widgets or diamond encrusted widgets for all we know, and that may explain their drastic difference in price from the others in the data set. The reason the mean or average is skewed is because of the two outliers of 24 and 39. It raises the mean value above the range of what the great majority of widgets are selling for in this market.

What about the median? What is it’s value in this set? In order to do this one must order the data values.

5 | 5 | 5 | 6 | 6 | 7 | 7 | 8 | 8 | 9 | 9 | 24 | 39 |

As this data set is an even number, to calculate the median one must average the two middlemost values. The two middlemost values are $7 and $7. Therefore the median is $7. The mean value of $10.62 is nearly 33% higher than the median value. I would argue that the median value of $7 is a much more accurate representation of the value of a widget in this example market than the $10.62 mean value. At $7 you would have a very competitively priced widget. At $10.62 you are clearly outpriced by almost all of your competition. The median is a statistical value that is designed very specifically to counter the effects of outliers such as the $24 and $39 widgets in our example.

This dampening effect of outliers is why I chose to use the median value. It is also why you see in most statistical analysis’ they use it as well to define data sets rather than averages. Averages can be very deceiving in the right circumstances. I will always try to portray the data and information in this blog in such a fashion as to be clear and accurate as much as possible.

This of course reminds me why I am such a skeptic of studies and statistics. By manipulating the sample size, the population size and which measures you use, one can make statistics say anything you want. Count me as a disciple of the school of thought popularized by Mark Twain and often attributed to Benjamin Disraeli, “There are three kinds of lies: lies, damned lies, and statistics.”

ゴローズ レザーブレス

Just want to say your article is as astounding. The clarity

in your post is simply excellent and i can assume you’re an expert on this subject.

Well with your permission allow me to grab your feed to keep updated with

forthcoming post. Thanks a million and please carry on the gratifying

work.

Look into my blog post :: interior kitchen designs

These things do not happen car shipping and your car is a specially equipped classic car

or truck. This way you can save a lot of special or a business and the

new Chinese leadership is in search of quality of growth

and not quantity. 4%, while north Gower has seen a healthy

jump in its share of the smartphone demographic.

My web blog – car transport (http://carshippinghq.com/)

A large thank you for that report blog site.A total ton many

thanks again. Will examine on…

My web blog: AskNow Psychics Review; Blair,

naturally like your web site but you need to taake a look at the spelling

on quite a few of your posts. Several of them are rife with spelling issues and I find it very

bothhersome to inform the reality however I’ll certainly cpme

again again.

Hi there! This is my first visit to your blog!

We are a group of volunteers and starting a new project in a community

in the same niche. Your blog provided us valuable information to work on. You have done a extraordinary job!

The component earth is believed of as becoming extremely solid and genuine.

Does the advisor tell you that he/she will solid a spell

or brew a potion to get you what you want? You have a circle of individuals

who adore and care for you.

my weblog: psychic source ricky

Your mode of telling all in this post is genuinely good,

every one be able to effortlessly be aware of it, Thanks a lot.

Feel free to visit my homepage http://www.acapellagold.com

This is really interesting, You’re a very skilled blogger.

I have joined your feed and look forward to

seeking more of your fantastic post. Also, I’ve shared your site in my

social networks!

my blog – moving calculator

I’ve read some excellent stuff here. Certainly worth bookmarking for revisiting.

I wonder how so much effort you set to make the sort of

wonderful informative website.

Fine way of telling, and good paragraph to get facts concerning

my presentation subject, which i am going to deliver in institution of higher

education.

I’m nnot that much off a internet reader to be honest but your sites relly nice, keep it up!

I’ll go ahead and bokmark your site to come back down the

road. Cheers

Feel free to surf to my web blog :: cession-parts-sci.fr (Reta)

Valuable information. Lucky me I found your site accidentally, and I’m shocked why this accident did not happened earlier!

I bookmarked it.

Hi there to every body, it’s my first go to see of this

blog; this blog carries amazing and really excellent information in favor of visitors.

What i don’t understood is actually how you are not actually much more

neatly-preferred than you might be right now.

You are so intelligent. You know therefore considerably when it comes

to this topic, produced me in my view consider

it from a lot of varied angles. Its like women and men don’t seem to be fascinated except it is one thing to do with

Woman gaga! Your individual stuffs outstanding. Always handle it up!

This paragraph gives clear idea in support of the

new people of blogging, that truly how to do running a

blog.

Founded in 1913, the German company Claas is a market leader in Europe

and one of the biggest manufacturers of combine harvesters in the world.

The most basic form of this is the humble sound card built into most computers.

Many additional features and accessories can be purchased at a later date and fused with

your current setup to accommodate a growing child and family.

> Unions in the US seemed confrontational and downright destructive to a This is the direct result of the *backlash* against Unions and the long-term demonization of them, not a result of them in the first The *owners* got so adversarial that the Unions have had http://www.bridalshowerthemes.info/2015/09/05/custom_candy_favor_tin_paris_france_theme_candy_tin-3/ little choice but to make it us vs This isn’t to say it hasn’t been taken too far, but there are plenty of times where owners are essentially forcing people to work shit conditions for shit pay, and if they don’t like it they can leave, but all that happens is someone else more desperate comes in, and eventually gets hurt or In a way, they’re protecting those people, it’s just hard to show how *potential* harm is being stopped in any meaningful In particular, we have Unions to thank for much of our safety and labor Conditions and work situations have been particularly terrible numerous times in our history, and it’s taken unions and strikes to fix They have a purpose, but they’re being abused, just as the position of ownership has been all too often as People that speak of unions making goods cost too much and sinking business aren’t thinking of a Union SOCIETY, where everyone is unionized, meaning wages are universally higher for workers, meaning they can *afford* those raised costs as The business doesn’t sink because people still buy the There’s no easy answer, but without Unions, we’ve have rampant exploitation and death in our job sites, so I’d rather take ‘em than leave ‘em any

Es atendido por personal perfectamente formado y constituye un punto único de contacto para cualquier solicitud que el cliente quiera plantear: recepción y estado de avisos de reparación, venta de accesorios y repuestos, información de producto e incluso, en numerosas ocasiones, dudas de funcionamiento que, resultas por teléfono, evitan el desplazamiento de un técnico.

LOS MENORES ABONAN A PARTIR DE LOS 2(DOS) AÑOS CUMPLIDOS LAS ENTRADAS SON SIN NUMERAR SINOPSIS Nueva versión del clásico cuento, donde Cenicienta recibe órdenes de su madrastra y hermanastras. El Parador de Valeria”, con música original del Maestro Carlos Gianni, quien apuesta nuevamente a que niños y adolescentes sean los protagonistas de una historia que los representa y atraviesa, generando una gran alegría y expectativa en la familia de la comedia musical. Este espectáculo está protagonizado por Tutuli Tatito, un títere que vive en un libro de tela.