I have a few math problems that I need some help with. I am somewhat confused on the one below.
Nancy hears a report that the average price of gasoline is $2.82. She averages the prices of gasoline near her home. She finds the average price of gas to be $3.03. Why are the averages different?
The price of gas varies depending upon the part of the country in which it is sold.
Good evening Ms. Sue,
I understand what you are saying about this now. Would the below also be a good answer?
Because the average she heard is not near her home.
Yes. It's possible the figure she heard is a nationwide average.
Okay. Thank you Ms. Sue for you assistance on this one.
You are welcome, Patrick.
The averages are different because Nancy's calculated average is specific to the prices of gasoline near her home, while the reported average of $2.82 is an average price across a larger population or geographic area.
To understand why the averages are different, we need to consider how averages are calculated. An average is the sum of a set of numbers divided by the number of values in the set.
In this case, Nancy calculated the average price of gasoline by adding up the prices of gas near her home and dividing it by the number of prices she included. Her average of $3.03 reflects the specific prices she encountered in her area.
On the other hand, the reported average of $2.82 is likely a result of collecting data from a larger sample size or a wider geographic area. This average takes into account a variety of prices from different locations, which may include areas with lower gas prices.
Therefore, the difference in averages can be attributed to the fact that Nancy's average is based on a smaller, more localized sample, while the reported average is likely based on a larger and more diverse dataset.