What statistical measure illustrates the typical value in a set of data pertaining to rental properties?

The mean is the statistical measure that represents the average value in a data set, making it a useful indicator of a typical value for rental properties. To calculate the mean, you sum all the rental amounts and then divide by the total number of properties considered. This provides a single value that reflects the overall level of rental income within the dataset.

Using the mean is particularly effective in rental property analysis because it incorporates all data points, giving a comprehensive view of rental trends. However, it is essential to note that if the dataset contains outliers—extremely high or low rental amounts—the mean might not fully represent the typical market value.

Other measures, such as standard deviation, mode, and variance, serve different purposes in statistical analysis. The standard deviation quantifies the amount of variation or dispersion in a set of values, which can highlight the consistency of rental rates but does not indicate typical value. The mode identifies the most frequently occurring rental value, providing insight into common prices but not necessarily conveying the average. Variance measures how far the values in a dataset spread out from the mean but, like standard deviation, does not reflect a typical value in isolation.

Thus, the mean effectively captures the average rental prices, giving appraisers a solid basis for