[Exercise 6] For each variable in HOMES, explain based on the data type of the variable why or why not the average (arithmetic mean) is a meaningful and useful statistic. [For each of the variables indicated in the square brackets, select the ONE best explanation from the two given]

A. [HOME] This is a label indicating the observation for a given house and probably not useful for any statistics.B. [HOME] This is numerical, discreet, it indicates the order a home appears in the data. As a numerical variable, the average is always meaningful and useful.C. [PRICE] It is a numerical, continuous variable that is a measure of value. So the average home sale price is a useful indicator of what typically or what we might expect a home in the data set to sell for.D. [PRICE] It is numerical but discreet because 0.01 is the smallest unit and not any fractional unit is meaningful. The average price can be any fractional value and so it cannot represent a meaningful PRICE data value.E. [BEDS] It is numerical and discreet because it counts the number of rooms. The average is not meaningful because the value is likely not a valid number of bedrooms (e.g. 2.34 bedrooms is nonsense).F. [BEDS] May be numerical discreet or categorical, but probably categorical because we likely are more interested in this as a quality of a home rather than a measure of some amount. As a categorical variable the average is not useful or meaningful.G. [SQFT] The average is meaningful and useful for the same reason as PRICE.H. [SQFT] The average is NOT meaningful useful for the same reason as PRICE.I. [LOTSIZE] The average is meaningful and useful for the same reason as PRICE.J. [LOTSIZE] The average is NOT meaningful useful for the same reason as PRICE.K. AGE: If we use it as a numerical variable, the average is meaningful and useful for the same reason as PRICE. If we consider it a categorical variable, then because it's a measure of time, the average is still meaningful since the we can interpret exactly what its value means relative to any of the groups.L. AGE: May be numerical discreet or categorical, but probably categorical because we likely are more interested in this as a quality of a home rather than a measure of some amount. As a categorical variable the average is not useful or meaningful.M. [BATHS] The average MAY be useful for the same reasons as BEDSN. [BATHS] The average is NOT useful for the same reasons as BEDSO. [CAC] It's categorical, but a dummy variable coded to focus on one group (has central AC) and exclude all others. So the average is the same as the proportion of homes that have central AC which is meaningful and useful.P. [CAC] Even though there are numerical values, it's a categorical variable and the average cannot be computed as the numbers are not numerically meaningful and only indicate if the home have central AC or not.Q. [STYLE] As a purely categorical variable the average cannot be computed as there are no meaningful numerical values to sum.R. [STYLE] If the styles are numerically coded 1,2,3 then the average can be computed and is meaningful and useful.S. [GARAGE] The average MAY be useful for the same reasons as BEDST. [GARAGE] The average is NOT useful for the same reasons as BEDSU. [POOL] It's categorical, but a dummy variable so the average is useful for the same reason as CAC.V. [POOL] It's categorical, but a dummy variable so the average is NOT useful for the same reason as CAC.W. [VIEW] It's categorical, but since no view is less than some view which is less than good view, the coding of these as 1,2,3 is numerically meaningful and useful and so the average would indicate the typical goodness of home views.X. [VIEW] Even though it's coded with numerically meaningful values, the average is not meaningful since there is no interpretation of values that's not one of the codes and there is no measure of how the any value relates to one of the coded values e.g. While an average view of 2.8 is closer to 3, a good view, we have no interpretation of what this means.Y. [SAD] The average is meaningful for the same reasons as STYLEZ. [SAD] The average is NOT meaningful for the same reasons as STYLE