A real estate company is selling 32 houses. One of the houses costs $834,000, but in order to attract more buyers, the price is dropped to $819,000. By how much does this change the average price of the 32 houses?
With your limited data, I assume that these are the prices of all the houses.
$834,000 - $819,000 = ?
Are you doing the Berkeleyx course???
To find how the change in price affects the average, we need to calculate the difference in total price before and after the reduction, and then divide it by the total number of houses. Here's how to do it step by step:
1. Calculate the total price before the reduction:
Multiply the original price ($834,000) by the number of houses (32):
Total price before = $834,000 * 32 = $26,688,000
2. Calculate the total price after the reduction:
Multiply the reduced price ($819,000) by the number of houses (32):
Total price after = $819,000 * 32 = $26,208,000
3. Calculate the difference in price:
Difference in price = Total price before - Total price after
Difference in price = $26,688,000 - $26,208,000 = $480,000
4. Calculate the change in average price:
Divide the difference in price by the number of houses (32):
Change in average price = Difference in price / Number of houses
Change in average price = $480,000 / 32 = $15,000
Therefore, the reduced price of $819,000 reduces the average price of the 32 houses by $15,000.