Todd Lindsey & Associates, a commercial real estate company located in Boston, owns six office buildings in the Boston area that it leases to businesses. The lease price per square foot differs by building due to location and building amenities. Currently, all six buildings are fully leased at the prices shown here.

a. Compute the weighted average (mean) price per square foot for these buildings.
b. Why is the weighted average price per square foot preferred to a simple average price per square foot in this case?

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Building 1 Building 1 Building 3 Building 4 Building 5 Building 6 Price per Square Foot S 75 S 85 S 90 S 45 S 55 S110 Number of Square Feet 125,000 37.500 77,500 35.000 60,000 130,000