Page 71 - Mathematics of Business and Finance

Chapter 1 | Review of Basic Arithmetic 51

WEIGHTED AVERAGE (WEIGHTED MEAN)
11. The average of a set of three grades is 85.5% and the average of a different set of four grades is 91%. Determine the
average of all seven grades. Round your answer to two decimal places.
12. The average of a set of four numbers is 60 and the average of a different set of two numbers is 50. Determine the average
of all six numbers. Round your answer to two decimal places.

13. A call center has four categories of employees, each paid a particular wage. Managers are paid $27 an hour, clerks $18
an hour, technicians $22 an hour, and administrative assistants $16 an hour. The call center has 3 managers, 22 clerks,
4 technicians, and 6 administrative assistants. Calculate the average pay per employee based on:
a. Simple arithmetic average. b. Weighted average (category of employees).
Round your answer to the nearest cent.
14. A footwear retailer sold 10 pairs of sneakers for $50 each, 14 pairs of leather shoes for $150 each, 3 pairs of boots for
$225 each, and 6 pairs of sandals for $25 each. Calculate the average price of shoes sold based on:
a. Weighted average. b. Simple arithmetic average.
Which method is more suitable in this situation and why?
15. Sven invested 40% of his money in mutual funds, 30% in real estate, and the balance in stocks. If the value of the money
that he invested in mutual funds, real estate, and stocks grew by 4%, 6%, and 9%, respectively, what was the average
growth on his total investment?
16. The manager of a sporting goods store was given the following data regarding the sales made for the month of March.
Product Price per unit Items sold
Snowboards $450.00 30
Skis $175.00 18
Rollerblades $230.00 22
Basketballs $65.00 43
What was the average price per unit sold in March? Round your answer to the nearest cent.
GEOMETRIC AVERAGE (GEOMETRIC MEAN)
17. Calculate the geometric mean for the following sets of data. Express the final answer rounded to two decimal places.
a. 9, 25 b. 4, 6, 8 c. 1.08, 1.09, 1.05, 1.12

18. Calculate the geometric mean for the following sets of data. Express the final answer rounded to two decimal places.
a. 4, 36 b. 2, 4, 8 c. 1.10, 1.16, 1.13, 1.18

19. Bianca invested $10,000 for four years. If the growth rate for each year was 3%, 5%, 6%, and 9%, calculate the average
annual growth rate using the geometric mean.

20. Mehar invested $12,800 for three years. If the growth rate for each year was 5%, 6%, and 8%, calculate the average
annual growth rate using the geometric mean.