By definition of average, Average of x and |y| = x + |y| / 2. To answer this question, we need a unique value for x + |y|, which in turn depends on the values of x and y.
From statement I alone, x+y = 20.
If x = 20 and y = 0, x+y = 20. Average of x and |y| = 20 + |0| / 2 = 10
If x = 40 and y = -20, x+y = 20. Average of x and |y| = 40 + |-20| / 2 = 40 + 20 / 2 = 30
Statement I alone is insufficient. Answer options A and D can be eliminated.
From statement II alone, |x+y| = 20.
This means x+y = 20 or x+y = -20. While working with the information given in statement I, we saw how it was insufficient. Therefore, the information that we have here is hopelessly insufficient.
Statement II alone is insufficient. Answer option B can be eliminated.
Combining statements I and II, we can see that x+y = 20. This means that after combining the statements, we are back to square one i.e. to the data given in statement I, which is insufficient.
The combination of statements is insufficient. Answer option C can be eliminated.
The correct answer option is E.
Hope that helps!
Aravind BT