The table below shows the daily expenditure on food of 25 households in a locality.
| Daily expenditure (in ₹) | 100 - 150 | 150 - 200 | 200 - 250 | 250 - 300 | 300 - 350 |
|---|---|---|---|---|---|
| Number of households | 4 | 5 | 12 | 2 | 2 |
Find the mean daily expenditure on food by a suitable method.
To find the mean daily expenditure, we use the Direct Method because the class size is uniform and the values are manageable. First, we calculate the class mark () for each class interval, which is the mid-point.
| Daily expenditure | |||
|---|---|---|---|
| 100 - 150 | 4 | 125 | 500 |
| 150 - 200 | 5 | 175 | 875 |
| 200 - 250 | 12 | 225 | 2700 |
| 250 - 300 | 2 | 275 | 550 |
| 300 - 350 | 2 | 325 | 650 |
| Total |
Using the formula: Mean . Substituting the values: Mean .
Thus, the mean daily expenditure on food is ₹ 211.
Explanation
The Direct Method is appropriate here as the class intervals are continuous and the calculation involves manageable numbers. The class mark () is calculated for each interval by averaging the upper and lower limits. The sum of the product of frequencies and class marks () is divided by the total number of households () to find the mean.
Solution Steps
Step 1: Calculate class marks () for each interval: , , etc.
Step 2: Calculate the product for each class: , , , , .
Step 3: Find the summations: and .
Step 4: Apply the mean formula: Mean .