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The average price of a share is the average of 5 readings taken at regular intervals in a day. The index price is taken by a weighted arithmetic average price of a class A and class B stock. The respective weights are 1.1 and 0.9 for the two kinds of stocks. If the five readings of a class A stock were 19, 26, 31, 35, 39 and for a class B stock the readings were 7, 8, 17, 20, 23 then what was the index price that day?
  • a)
    46.5
  • b)
    25
  • c)
    23.25
  • d)
    45
Correct answer is option 'C'. Can you explain this answer?
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Given:
- Five readings of a class A stock: 19, 26, 31, 35, 39
- Five readings of a class B stock: 7, 8, 17, 20, 23
- Weights for class A and class B stocks: 1.1 and 0.9 respectively

To find:
The index price for the day

Solution:
1. Find the average price of a share for class A and class B stocks separately:
- Average price of a share for class A stock = (19 + 26 + 31 + 35 + 39) / 5 = 30
- Average price of a share for class B stock = (7 + 8 + 17 + 20 + 23) / 5 = 15

2. Calculate the weighted arithmetic average price of the two kinds of stocks using the given weights:
- Weighted average price = (1.1 * 30 + 0.9 * 15) / (1.1 + 0.9) = 23.25

Therefore, the index price for the day is 23.25.

Hence, option (c) is the correct answer.
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The average price of a share is the average of 5 readings taken at regular intervals in a day. The index price is taken by a weighted arithmetic average price of a class A and class B stock. The respective weights are 1.1 and 0.9 for the two kinds of stocks. If the five readings of a class A stock were 19, 26, 31, 35, 39 and for a class B stock the readings were 7, 8, 17, 20, 23 then what was the index price that day?a)46.5b)25c)23.25d)45Correct answer is option 'C'. Can you explain this answer?
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