Explanation:

- Initial Problem: The average of 22 numbers is 37.5, so their total sum is \(22 \times 37.5 = 825\).

- First 12 Numbers: The average is 40.6, making their total sum \(12 \times 40.6 = 487.2\).

- Last 12 Numbers: The average is 35.4, adding up to \(12 \times 35.4 = 424.8\).

- Overlap of 11th and 12th Numbers: Since both sums include these two numbers, we subtract the total once (11th and 12th numbers).

- Sum of 11th and 12th Numbers: Calculating both average sums includes 11th and 12th twice, leading to a sum of 912 (487.2 + 424.8). From this, subtract 825 (total of all 22, counted once) to find the overlap sum, \(912 - 825 = 87\).

- Remaining 20 Numbers: Exclude these two summed to 87, leaving \(825 - 87 = 738\).

- New Average: Divide the remainder by 20, \(738 \div 20 = 36.9\).

Correct Answer: Option 2: 36.9