Types of Averages

The mean is the average of the numbers. It is easy to calculate: add up all the numbers, then divide by how many numbers there are. In other words it is the sum divided by the count.

Median vs. Average The median of a set of numbers is that number where half the numbers are lower and half the numbers are higher. In the case of real estate, that means that the median is the price where half the homes sold in any given area that month were cheaper, and half were more expensive than the median.

The mode of a set of data values is the value that appears most often. It is the value x at which its probability mass function takes its maximum value. In other words, it is the value that is most likely to be sampled.