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Explanation:

Let the number excluded be 'x'

Sum of the 5 numbers = 5 × 18 = 90

Sum of remaining 4 numbers = 90 - x = 4 × 16

⇒ x = 90 - 64 = 26

Alternately,
Had the excluded number been 18, the average of the remaining numbers wouldn't have changed. 

Since the average of remaining 4 numbers decreased by 2, it means the excluded number is 4 × 2 = 8 more than the original average.

∴ Excluded number = 18 + 8 = 26.

Hence, option (c).

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