Concept:
Mean deviation about median is defined as:
\[
\text{Mean Deviation} = \frac{1}{n}\sum |x_i - \text{Median}|
\]
For an arithmetic sequence with an even number of terms, the median is the average of the two middle terms.
Step 1: Identify the median.
The given sequence is:
\[
k, 2k, 3k, \ldots, 1000k
\]
Number of terms \(n = 1000\) (even).
Median:
\[
\text{Median} = \frac{500k + 501k}{2} = \frac{1001k}{2}
\]
Step 2: Write the general term and deviation from median.
General term:
\[
x_i = ik
\]
Deviation from median:
\[
|x_i - \text{Median}| = \left| ik - \frac{1001k}{2} \right|
= k\left| i - \frac{1001}{2} \right|
\]
Step 3: Use symmetry to find total deviation.
Due to symmetry about the median:
\[
\sum |x_i - \text{Median}|
= 2k \sum_{i=1}^{500} \left(\frac{1001}{2} - i\right)
\]
The terms form an A.P. from \(499.5\) to \(0.5\).
Number of terms \(= 500\)
Average term:
\[
\frac{499.5 + 0.5}{2} = 250
\]
Sum:
\[
500 \times 250 = 125000
\]
Thus,
\[
\sum |x_i - \text{Median}| = 2k \times 125000 = 250000k
\]
Step 4: Calculate mean deviation.
\[
\text{Mean Deviation} = \frac{250000k}{1000} = 250k
\]
Given:
\[
250k = 500 \Rightarrow k = 2
\]
Step 5: Find \(k^2\).
\[
k^2 = 4
\]
\[
\boxed{k^2 = 4}
\]