Question : The line chart given below shows the expenditure of two companies J and K in five different years.
L1 = The difference between the average expenditure of company J in years A and B and the average expenditure of company K in years C and D.
L2 = The value of average expenditure of company K in all 5 years.
What is the value of (L2 – L1)?
Option 1: 490
Option 2: 540
Option 3: 350
Option 4: 420
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Correct Answer: 490
Solution :
From the image description,
The average expenditure of company J in years A and B = $\frac{(400+300)}{2}$ = 350
The average expenditure of company K in years C and D = $\frac{(500+300)}{2}$ = 400
L1 = The difference between the average expenditure of company J in years A and B and the average expenditure of company K in years C and D.
⇒ L1 = 400 – 350 = 50
L2: The value of the average expenditure of company K in all 5 years = $\frac{(1000+700+500+300+200)}{5}$ = 540
Therefore, the value of (L2 – L1) = 540 – 50 = 490
Hence, the correct answer is 490.
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