Average

This topic has expert replies
User avatar
Master | Next Rank: 500 Posts
Posts: 269
Joined: Sun Apr 27, 2014 10:33 pm
Thanked: 8 times
Followed by:5 members

Average

by prachi18oct » Tue May 05, 2015 9:32 am
Image

Please tell me if the below reasoning is sufficient to answer the question correctly :-

Let M, J and K be the annual salaries of Mary, Jim and Kate
M >J, K and M-J = 2 (M-K)
=> that K is the median or mean salary of the three, since the difference b/w M and J is twice the diff b/w M and K => J < K < M

(1) Not sufficient as we dont know anything about K or mary.
(2) Sufficient as we now know the avg salary of the three.

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pm
Location: Vancouver, BC
Thanked: 5254 times
Followed by:1268 members
GMAT Score:770

by Brent@GMATPrepNow » Tue May 05, 2015 9:57 am
In a certain year the difference between Mary's and Jim's annual salaries was twice the difference between Mary and Kate's annual salaries. If Mary's annual salary was the highest of the 3 people, what was the average annual salary of the 3 people that year?

1) Jim's annual salary was $30,000 that year
2) Kate's annual salary was $40,000 that year
Let's first deal with the given information.
Let J = Jim's salary
Let M = Mary's salary
Let K = Kate's salary

Notice that the salaries (in ascending order) must be J, K, M
Also, if the difference between Mary's and Jim's annual salaries equals twice the difference between Mary's and Kate's annual salaries, then we can conclude that the 3 salaries are equally spaced.

Target question: What was the average annual salary of the 3 people that year?

Statement 1: Jim's annual salary was $30,000 that year.
In other words, J = 30,000
So, the three salaries, arranged in ascending order are: 30,000, K, M
Plus we know that the 3 salaries are equally spaced.
Do we now have enough information to answer the target question? No.

For proof that that we don't have enough information, consider these 2 cases:
Case a: J=30,000, K=30,001, M=30,002, in which case the average salary is $30,001
Case b: J=30,000, K=30,002, M=30,004, in which case the average salary is $30,002
Since we cannot answer the target question with certainty, statement 1 is NOT SUFFICIENT

Statement 2: Kate's annual salary was $40,000 that year.
In other words, K = 40,000
Perfect!
Since the 3 salaries are equally spaced, we can use a nice rule that says, "If the numbers in a set are equally spaced, then the mean and median of that set are equal"
Since Kate's salary must be the median salary, we now know that the average salary must be $40,000
Since we can answer the target question with certainty, statement 2 is SUFFICIENT

Answer = B

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pm
Location: Vancouver, BC
Thanked: 5254 times
Followed by:1268 members
GMAT Score:770

by Brent@GMATPrepNow » Tue May 05, 2015 9:58 am
prachi18oct wrote:
Please tell me if the below reasoning is sufficient to answer the question correctly :-

Let M, J and K be the annual salaries of Mary, Jim and Kate
M >J, K and M-J = 2 (M-K)
=> that K is the median or mean salary of the three, since the difference b/w M and J is twice the diff b/w M and K => J < K < M

(1) Not sufficient as we dont know anything about K or mary.
(2) Sufficient as we now know the avg salary of the three.
Perfect!

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image