Question

You spent these amounts on gasoline for the past four months: $67,$78,$53,$89. What should you budget for gasoline this month? A:$89 B:70 C:72 D$53

Answer 1

When we are making a budget based on the expenses we incurred in the previous months on the same commodity, we take the average of the expenses.

To find the average we add all expenses and divided by the number of expenses.

Here the expenses incurred in the previous months are $67, $78, $53 & $89.

The total expenses for the four moths are

= 67 + 78 + 53 + 89

= $287

To find the average we divided by 4

So average expenses = 287/4 = $71.75

So we must Budget $72 for this month.

Option C) is the right answer