The weekly expenditure (in dollars) of 5 families on groceries is: Family A = 250, Family B = 400, Family C = 350, Family D = 500…

Question

The weekly expenditure (in dollars) of 5 families on groceries is: Family A = 250, Family B = 400, Family C = 350, Family D = 500, Family E = 300.Determine: (i) Average expenditure, (ii) Family spending above average, (iii) Difference between highest and lowest expenditure.

1. A. Average = 350, Families above average = B, D, Difference = 250
2. B. Average = 360, Families above average = B, D, Difference = 250 (Correct answer)
3. C. Average = 360, Families above average = C, D, Difference = 250
4. D. Average = 360, Families above average = B, D, Difference = 200

Correct Answer

Option B — Average = 360, Families above average = B, D, Difference = 250

Detailed Solution & Explanation

The correct answer is Average = $360, Families above average = B, D, Difference = $250.

Key Points

• Total expenditure = 250 + 400 + 350 + 500 + 300 = $1,800, over 5 families, so the average is $360.
• Comparing each against 360:
  • A = 250 ✗, B = 400 ✓, C = 350 ✗, D = 500 ✓, E = 300 ✗
  • so B and D are above average
• Difference between highest and lowest = 500 − 250 = $250.

Additional Information

• Family C at 350 is just below the average of 360, which is what separates the correct option from the one naming C and D — the numbers are chosen so a careless comparison fails.
• The difference between the largest and smallest value is the range, the simplest measure of dispersion.
• A three-part question of this shape is best answered by computing all three quantities before reading the options, since each distractor changes only one component.
• The average lies between the median (350) and the highest value, reflecting the pull of the $500 outlier.