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CMA Foundation · Fundamentals of Business Mathematics and Statistics · Measures of Central Tendency and Dispersion

A shop in Pune recorded daily sales (in ₹ thousand) over five days as 12, 15, 18, 20 and 25. Which of these figures is the arithmetic mean of the sales, and so serves as the single representative value that uses every observation?

The arithmetic mean is 18 thousand rupees, because the five sales figures add up to 90 and dividing by five observations gives 18. The mean uses every value, which is why it is a good single representative figure for the data.

  1. A16
  2. B18
  3. C19Correct
  4. D20

Explanation

Sum = 12+15+18+20+25 = 90. Mean = 90/5 = 18 thousand. Hence 18 is the mean. The value 20 is the second-highest observation and is not the mean; 19 and 16 do not match the sum of 90 divided by 5 either.

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