(1) Which measure of center would be best used to advertise the house prices for this area? Also, please add?

[Donald]

You've left out part of question 1 in your homework assignment.

Now, in the real world, the answer depends. (I'm a Realtor; I work with home prices every day.) If you have prices like: $100,000, $105,000, $110,000, and $350,000, then the median is far better than the average. (The $350,000 figure would distort your findings.)

If all the prices are clustered around the same point--say $100,000, $105,000, $110,000, and $115,000--then either median or average (mean) is fine. But I'm guessing your assignment had prices similar to the ones I described above, and in that case the median is the best. So if you remove the one outlier, then I'm guessing your teacher wants you to say that the mean is a better calculation. Problem is: Your teacher knows nothing about the real world, but that's the answer he/she wants.

Hope that helps.