Question

Table 22-20 The table below shows the preferred city budget (in millions) for in the city of Springfield.

Percent of Voters Preferred Budget

4% $60

6% $50

14% $0

16% $40

18% $20

20% $30

22% $10

Refer to Table 22-20.

In an election, each voter will select the budget closest to his or her most preferred budget. Using this information, what is the most preferred budget of the median voter?

a. $10

b. $20

c. $30

d. $40

Answer 1

The given table shows that -

14% voters would prefer a budget of $0

36% of voters would prefer a budget of $10 million or less

54% of voters would prefer a budget of $20 million or less

74% of voters would prefer a budget of $30 million or less

90% of voters would prefer a budget of $40 million or less

96% of voters would prefer a budget of $50 million or less

100% of voters would prefer a budget of $60 million or less

The median voter theorem states that in majority voting system, the median voter stands at the simple majority.

The simple majority (more than 50%) is attained at budget of $20 million because 54% of voters prefer budget of $20 millin or less.

Thus,

The most preferred budget of the median voter is $20 million.

Hence, the correct answer is the option (b).