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In Alioth Industries, 20% of the employees have advanced deg
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23 Nov 2018, 05:50
23 Nov 2018, 05:50
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94% (01:36) correct
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In Alioth Industries, 20% of the employees have advanced degrees and the others have bachelor’s degrees. The average salary for the employees with an advanced degree is $ 350,000, and the average salary for employees with a bachelor’s degree is $ 100,000. What is the average salary, in dollars, for all the employees at Alioth Industries?
Show: :: OA
150,000
Re: In Alioth Industries, 20% of the employees have advanced deg
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05 Feb 2020, 15:05
05 Feb 2020, 15:05
1
This is a weighted average. Let's make all the salaries 1000x smaller, just to simplify calculations.
weighted average = 0.2*(350) + 0.8*(100) = 70 + 80 = 150
The average for all employees is $150,000.
Frequently Asked Questions:
FAQ: Why didn't we divide the total average by 2?
A: The kind of problem we have here is a weighted average and is done slightly differently than other averaging problems.
You would be right that in a normal averaging problem, we could simply add the two numbers and divide by two. In a sense, we're able to do this because the two numbers have the same weight and therefore are two halves (50%) of the average. Think of dividing by two as setting the weight of each number to 50% each.
On the other hand, one of our numbers (the number of employees with advanced degrees) is weighted at 20%, while the other number (the number of employees with bachelor's degrees) must therefore be weighted at 80%. The weights are not balanced as in the previous example, and we must adjust our method to account for this change.
Actually, the formula for weighted averages is pretty simple to use:
weighted average = sum (percent weight *number )
All we have to do to find the weighted average is sum the percent weights of the numbers times the numbers themselves. =D
weighted average = 0.2*(350) + 0.8*(100) = 70 + 80 = 150
The average for all employees is $150,000.
Frequently Asked Questions:
FAQ: Why didn't we divide the total average by 2?
A: The kind of problem we have here is a weighted average and is done slightly differently than other averaging problems.
You would be right that in a normal averaging problem, we could simply add the two numbers and divide by two. In a sense, we're able to do this because the two numbers have the same weight and therefore are two halves (50%) of the average. Think of dividing by two as setting the weight of each number to 50% each.
On the other hand, one of our numbers (the number of employees with advanced degrees) is weighted at 20%, while the other number (the number of employees with bachelor's degrees) must therefore be weighted at 80%. The weights are not balanced as in the previous example, and we must adjust our method to account for this change.
Actually, the formula for weighted averages is pretty simple to use:
weighted average = sum (percent weight *number )
All we have to do to find the weighted average is sum the percent weights of the numbers times the numbers themselves. =D
Re: In Alioth Industries, 20% of the employees have advanced deg
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19 Jul 2024, 14:52
19 Jul 2024, 14:52
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Thanks to another GRE Prep Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).
Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
