Question

The data given below gives the yearly profits of two companies A and B.
(Year)=1980,1981,1982
(Profits)= A=10,000, 8000, 13000
B=15000, 13000, 14000

Answer 1

The average annual profit formula is the sum of annual profits divided by the number of years. Company A projects annual profits of $10,000, $8,000 and $13,000 for three years

$$average\ annual\ profit={10000+ 8000+13000\over 3}=10333.33$$

Company B projects annual profits of $15,000, $13,000 and $14,000 for three years

$$average\ annual\ profit={15000+ 13000+14000\over 3}=14000$$