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A company has two divisions. Division A has 105 employees and an avera
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17 Feb 2023, 00:26
17 Feb 2023, 00:26
Expert Reply
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Question Stats:
88% (01:20) correct
11% (01:12) wrong based on 9 sessions
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A company has two divisions. Division A has 105 employees and an average salary of $60,000. Division B has 93 employees and an average salary of $70,000.
A) Quantity A is greater.
B) Quantity B is greater.
C) The two quantities are equal.
D) The relationship cannot be determined from the information given.
Quantity A |
Quantity B |
The average salary of all the employees at the company |
$65,000 |
A) Quantity A is greater.
B) Quantity B is greater.
C) The two quantities are equal.
D) The relationship cannot be determined from the information given.
Re: A company has two divisions. Division A has 105 employees and an avera
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19 Feb 2023, 07:15
19 Feb 2023, 07:15
Expert Reply
OE
A lot of unnecessary computation could go into answering this QC question. Notice that your benchmark value in Quantity B is exactly halfway between the average salaries of the two divisions. This is very convenient because you can use the principle of weighted averages. Suppose that instead of 198 employees (105 + 93), you have six employees: three people in each division. To simplify things, you can say that everyone in Division A makes $60,000 and everyone in Division B makes $70,000.
3(60,000)+3(70,000)/6=65,000
There are an equal number of people in each division, so the average salary is the average of 60,000 and 70,000.
The common information tells you there are more employees in Division A (105 vs. 93). The average salary of the whole company will be less than $65,000
B is the answer
A lot of unnecessary computation could go into answering this QC question. Notice that your benchmark value in Quantity B is exactly halfway between the average salaries of the two divisions. This is very convenient because you can use the principle of weighted averages. Suppose that instead of 198 employees (105 + 93), you have six employees: three people in each division. To simplify things, you can say that everyone in Division A makes $60,000 and everyone in Division B makes $70,000.
3(60,000)+3(70,000)/6=65,000
There are an equal number of people in each division, so the average salary is the average of 60,000 and 70,000.
The common information tells you there are more employees in Division A (105 vs. 93). The average salary of the whole company will be less than $65,000
B is the answer
gmatclubot
Re: A company has two divisions. Division A has 105 employees and an avera [#permalink]
19 Feb 2023, 07:15
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