What is the simple arithmetic mean of the four area-wise monthly starting…

2024

What is the simple arithmetic mean of the four area-wise monthly starting salaries given for 2020?

Answer: A. ₹ 60750ConceptThe simple arithmetic mean gives equal weight to every observation in a data set. For n observations, arithmetic mean = (sum of all observations) ÷ n.…

  1. A.

    ₹ 60750

  2. B.

    ₹ 63300

  3. C.

    ₹ 63333

  4. D.

    ₹ 64030

Show answer & explanation

Correct answer: A

Concept

The simple arithmetic mean gives equal weight to every observation in a data set.

For n observations, arithmetic mean = (sum of all observations) ÷ n.

Application

  1. Read the four 2020 monthly starting salaries from column II of the table: Hardware ₹63,800; SQA ₹63,900; Software Development ₹64,400; and Other ₹50,900.

  2. Add the four salaries: ₹63,800 + ₹63,900 + ₹64,400 + ₹50,900 = ₹2,43,000.

  3. Divide the total by the number of employment areas: ₹2,43,000 ÷ 4 = ₹60,750.

Cross-check

Relative to ₹60,750, the deviations are +₹3,050, +₹3,150, +₹3,650, and −₹9,850; their sum is zero, which confirms the mean.

Therefore, the simple arithmetic mean is ₹60,750.

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