Question

Suppose there are 20 people in a room and the mean amount of cash held by these 20 people is $14.50 per person. If two people enter the room carrying $4.00 and $5.00 respectively, what does the mean amount of cash in the room become? Give your answer in dollars and cents; that is, precise to two decimal places.

Answer 1

13.59

Explanation:

The calculation of amount of cash in the room is shown below:-

`\$14.50 = (\Sigma xi)/(20)`

= 20 × $14.50

= $290

Now, the new sum is

= ∑xi + $4.00 + $5.00

= $290 + $4.00 + $5.00

= $299

Total person in the room is

= 20 + 2

= 22

So,

Mean amount of cash in the room = New sum ÷ Total person in the room

= $299 ÷ 22

= 13.59