Question

Study the given data carefully and answer the question that follows:

Country	Monthly income of citizens in ₹
	I	II	III	IV	V
A	9,500	10,500	9,800	1,000	10,200
B	500	500	500	500	4,800

Identify the average monthly income of citizens in country A.

• A. 8,200
• B. 9,000
• C. 1,000
• D. 9,020

Hint:

Add the five incomes of country A and divide by five. Estimate first, since four incomes are near ten thousand and one is very low, so the average must be a little above eight thousand.

Answer 1

The Correct Option is A

Concept:

• Average income, also called per capita income, is the total income of a country divided by its total population.
• Here the country has five citizens, so the five incomes are added and the sum is divided by five.

Step 1: Write the formula.
$$\text{Average income} = \frac{\text{Total income of all citizens}}{\text{Number of citizens}}$$

Step 2: Add the five incomes of country A.
$9{,}500 + 10{,}500 = 20{,}000$
$20{,}000 + 9{,}800 = 29{,}800$
$29{,}800 + 1{,}000 = 30{,}800$
$30{,}800 + 10{,}200 = 41{,}000$
So the total monthly income of country A is $\textrm{Rs.}\ 41{,}000$.

Step 3: Divide by the number of citizens.
$$\frac{41{,}000}{5} = 8{,}200$$

Step 4: Check the answer against the data.
Four of the five citizens earn between $9{,}500$ and $10{,}500$, but the fifth earns only $1{,}000$. That one low figure pulls the average down to $8{,}200$, which is why the average is lower than most of the individual incomes.

Final Answer: (A) 8,200