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Averages

by shivaraj iyer » Thu Oct 04, 2012 3:54 am
In the island of Hoola Boola Moola , inhabitants have a strang process of calculating their average incomes and expenditures. According to an old legend prevalent on that island. the average monthly income had to be calculated on the basis of 14 months in a calendar year while the average monthly expenditure was to be calculated on the basis of 9months per year. This would lead to people having an underestimation of their saving since there would be an underestimation of the income and overestimation of their expenditure per month.

1) If it is known that Mr.Magoo Hoola Boola estimates his savings at 10 Moolahs and if it isfurther known that his actual expenditure is 288 Moolahs in the year(Moolahs, for those who are not aware is the of�cial currency of Hoola Boola Moola), then what will happen to his estimated savings if he suddenly calculales on the basis of a 12 month calendar year?

a) will increase by 5
b) will increase by 15
c) will increase by 10
d) will triple
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by Anurag@Gurome » Fri Oct 05, 2012 12:52 am
Assuming that the savings is 10 moolahs per month.

By hoola Boola Moola(hbm) way of calculating:
monthly avg savings based on hbm way = 10
Annual Expenditure = 288
monthly Expenditure based on hbm way = 288/9 = 32
avg monthly income based on hbm way = avg Expenditure + avg Savings = 32 + 10
total income = 42 * 12 = 588
avg income based on annual calendar = 588/12 = 49
avg Expenditure based on annual calendar = 288/12 = 24
avg savings based on annual calendar = 49 - 24 = 25

difference between both savings = 25 - 10 = 15
hence, it is b
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by kshsharma86 » Mon Jul 15, 2013 2:22 am
But Sir, average monthly expenditure according to the hbm way is being calculated considering 9 months a year and not 12 months a year while the criterion for savings is not known(it's simply written 10 Moolahs here). So, how can you add the monthly expenditure(288/9=32) and the savings(i.e 10)?

Thankyou!!
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