Beautiful Problem !!
Let us assume that the set is in ascending order, i,e, a<b<c<d<e.
Therefore, median of the set M = c
From the problem we get,
\(Remainder of (c/D) = 5 ......................(I)\\
\)
D' is really a dummy because the standard deviation does not change when the same number is added to all the elements of the set.
Therefore, D'=D
Since, all elements are added by x, the Median of the new set becomes (c+x).
\(Remainder of (x/D) >=8\) (from the problem statement) .......................(II)
\(Remainder of [(c+x)/D] = r\) (from the problem statement) ......................(III)
If we see statement II, D cannot be less than or equal to 8 because if D is less than or equal to 8, it cannot leave a remainder that is greater or equal to 8. Since the divisor is always greater than the remainder, we can conclude that,
\(D>8\)
But in the problem statement we are told that 6<=D<=9.
So combining the two statements, we can see that the only possible value of D is 9.Again see statement (II), which has now turned into:
\(Remainder of (x/9) >=8\)
But realise that remainder of (x/9) must always be less than 9 (Because if it becomes 9, the quotient increases by 1 and the remainder becomes zero).
So, from the above two statements, we conclude:
\(Remainder of (x/9) =8 ......................(IV) \)
Recall statement (III) :
\(Remainder of [(c+x)/D] = r \)(from the problem statement) ......................(III)
We use a little property of modular arithmetic here which states (c+x)mod D = ((c mod D) + (x mod D))mod D
which put in simple terms, translates to:
\(Remainder of [(c+x)/D] = Remainder of [(Remainder of c/D) + Remainder of (x/D))/D]\)
Put D=9 in the equation:
\(Remainder of [(Remainder of c/9) + Remainder of (x/9))/9]\)
We know from statement (I) and (IV), the values of (Remainder of c/9)=5 and Remainder of (x/9) = 8,
=> r = Remainder of [(Remainder of c/9) + Remainder of (x/9))/9] = Remainder of [(5+8)/9] = Remainder of (13/9) = 4.
So, when M was divided by D, remainder was 5 (Statement I).
r=4
Therefore r is 20% smaller than 5.
Option A.