Question

The following table shows the revenue (in millions) of five companies for the past year. What is the average revenue of the five companies?

Hint:

A quick way to divide by 5 is to divide by 10 and then multiply by 2. For example, \(2850 / 10 = 285\), and \(285 \times 2 = 570\). This can be faster for mental calculations.

Answer 1

Step 1: Understanding the Concept:
The question asks for the average (arithmetic mean) revenue of the five companies. The average is calculated by summing all the values and dividing by the number of values.
Step 2: Key Formula or Approach:
\[ \text{Average} = \frac{\text{Sum of all values}}{\text{Number of values}} \]
Step 3: Detailed Explanation:
First, list the revenues for the five companies from the table:
500, 650, 400, 700, 600.
Next, calculate the sum of these revenues:
\[ \text{Sum} = 500 + 650 + 400 + 700 + 600 \]
\[ \text{Sum} = 1150 + 400 + 700 + 600 \]
\[ \text{Sum} = 1550 + 700 + 600 \]
\[ \text{Sum} = 2250 + 600 \]
\[ \text{Sum} = 2850 \]
The number of companies (values) is 5.
Now, divide the sum by the number of companies to find the average:
\[ \text{Average} = \frac{2850}{5} = 570 \]
Step 4: Final Answer:
The average revenue of the five companies is 570 million.