CMA Foundation · Fundamentals of Business Mathematics and Statistics · Measures of Central Tendency and Dispersion
The mean monthly bonus of 10 employees is ₹30 (in hundreds). The company increases every employee's bonus by 20% and then adds a fixed ₹5 (in hundreds) to each. What is the new mean bonus (in hundreds of rupees)?
The new mean is 41 hundred rupees. The mean undergoes the same transformation as each value: multiply 30 by 1.2 to get 36, then add 5. Applying the 20% increase after adding 5 gives 42, which reverses the stated order and is wrong.
- A35
- B36
- C41Correct
- D42
Explanation
The mean changes in the same way as each value. New mean = 30 × 1.2 + 5 = 36 + 5 = 41. The value 42 arises from adding 5 first and then applying 20%, which reverses the order of operations, and 36 omits the fixed addition.
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