Multiple choice

Directions: In the following question, two quantities are given. Compare these quantities and choose the correct option accordingly. The owner of a company buys an oil at Rs. 10, 12, 15 and 20 per litre for 4 successive years. She spends Rs. 5000 each year. Quantity I: The average cost per litre of oil (approximately) Quantity II: The average cost of oil per litre for the given 4 years

  1. Quantity I > Quantity II

  2. Quantity I < Quantity II

  3. Quantity I ≤ Quantity II

  4. Quantity I ≥ Quantity II

  5. Quantity I = Quantity II or No relation
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Quantity I is the weighted average cost per litre, calculated by dividing the total expenditure of Rs. 20000 by the total quantity purchased (500 plus 416.67 plus 333.33 plus 250), which is approximately Rs. 13.79. Quantity II is the simple arithmetic mean of the four prices, calculated as (10 plus 12 plus 15 plus 20) divided by 4, which is Rs. 14.25. Since Rs. 13.79 is less than Rs. 14.25, Quantity I is less than Quantity II.

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