You have decided to buy a new automobile and have been gathering information about the purchase price. The manufacturer's website shows a "list price" of $24,500, which includes your preferred options: leather trim and digital audio player. You have also consulted the "Blue Book" guide to car prices and found that the average price paid for a similar new vehicle is $19,500. However, the guide also indicates that recent selling prices have ranged from $18,000 up to $22,000.

Required:

1. Which price quote, the "list price" or the "Blue Book" average price, is the more relevant for your decision? Why?

2. Which price quote is more representationally faithful? Why?