Question

For the large cars sold at an auction that is summarized in the table above, what was the average sale price per car?

Hint:

Pay close attention to units given in tables and charts, such as "(in thousands)" or "(in millions)". Forgetting to convert these units to their full value is a common source of error.

Answer 1

Step 1: Understanding the Concept:
This question asks for the average (arithmetic mean) sale price. The average is calculated by dividing the total amount of sales by the number of items sold.
Step 2: Key Formula or Approach:
\[ \text{Average Price} = \frac{\text{Total Sales Value}}{\text{Number of Units Sold}} \] We need to extract the correct values from the "Large Cars" column in the provided table (Figure 7).
Step 3: Detailed Explanation:
From the table, for "Large Cars":
- The "Number of cars sold" is 20.
- The "Actual sales total (in thousands)" is 120.
It is crucial to note that the sales total is given "in thousands". So, the actual sales total is:
\[ \text{Total Sales} = 120 \times 1000 = 120{,}000 \] Now, we can calculate the average sale price per large car:
\[ \text{Average Sale Price} = \frac{120{,}000}{20} = 6{,}000 \] Step 4: Final Answer:
The average sale price per large car was $6,000.