The following table shows the income (in ₹ lakh) and profit percentage of a…

2023

The following table shows the income (in ₹ lakh) and profit percentage of a company over six years from 2017 to 2022.

Year-wise Income and Profit of a Company

Year

Income (in ₹ lakh)

Profit (%)

2017

120

7.5

2018

160

15

2019

130

22.5

2020

170

17.5

2021

190

20

2022

150

27.5

The median income of the company over the six years from 2017 to 2022 was:

Answer: A. ₹ 155 lakhCONCEPTTo find a median, first arrange all observations in ascending order. For an even number n of observations, the median is the arithmetic mean of the…

  1. A.

    ₹ 155 lakh

  2. B.

    ₹ 150 lakh

  3. C.

    ₹ 160 lakh

  4. D.

    ₹ 153.33 lakh

Show answer & explanation

Correct answer: A

CONCEPT

To find a median, first arrange all observations in ascending order.

For an even number n of observations, the median is the arithmetic mean of the observations at positions n/2 and (n/2) + 1.

APPLICATION

  1. Arrange the six income values in ascending order: ₹120, ₹130, ₹150, ₹160, ₹170, and ₹190 lakh.

  2. Here n = 6, so the two central positions are the 3rd and 4th; their values are ₹150 lakh and ₹160 lakh.

  3. Median income = (₹150 lakh + ₹160 lakh) / 2 = ₹310 lakh / 2 = ₹155 lakh.

CROSS-CHECK

There are three income values below ₹155 lakh and three above it, confirming the midpoint of the two central observations.

Therefore, the median income is ₹155 lakh.

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