An investment company advertised that last year its clients, on average, made a

Question

An investment company advertised that last year its clients, on average, made a profit of 10%. Assuming that average refers to the mean, which of the following claims must be true based on this information? Last year some of their clients made a profit of exactly 10%. Last year some of their clients made a profit of at least 10%. Last year all of their clients made a profit of less than 15%. Two years ago at least one of their clients made a profit of at least 10%. Last year fewer than half of their clients a profit of 10% or less. None of the above statements is true.

Explanation / Answer

Last year fewer than half of their clients made profit of 10% or less.

This statement is true because, while taking the mean we take the sum of all available values and then divide by the number of values. If fewer than half of the values are below the expected mean, this will give us the value of expected mean.

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