In the island of Hoola Boola Moola , inhabitants have a strang process of calculating their average incomes and expenditures. According to an old legend prevalent on that island. the average monthly income had to be calculated on the basis of 14 months in a calendar year while the average monthly expenditure was to be calculated on the basis of 9months per year. This would lead to people having an underestimation of their saving since there would be an underestimation of the income and overestimation of their expenditure per month.
1) If it is known that Mr.Magoo Hoola Boola estimates his savings at 10 Moolahs and if it isfurther known that his actual expenditure is 288 Moolahs in the year(Moolahs, for those who are not aware is the of�cial currency of Hoola Boola Moola), then what will happen to his estimated savings if he suddenly calculales on the basis of a 12 month calendar year?
a) will increase by 5
b) will increase by 15
c) will increase by 10
d) will triple
Averages
This topic has expert replies
-
- Newbie | Next Rank: 10 Posts
- Posts: 2
- Joined: Thu Sep 20, 2012 6:09 am
GMAT/MBA Expert
- Anurag@Gurome
- GMAT Instructor
- Posts: 3835
- Joined: Fri Apr 02, 2010 10:00 pm
- Location: Milpitas, CA
- Thanked: 1854 times
- Followed by:523 members
- GMAT Score:770
Assuming that the savings is 10 moolahs per month.
By hoola Boola Moola(hbm) way of calculating:
monthly avg savings based on hbm way = 10
Annual Expenditure = 288
monthly Expenditure based on hbm way = 288/9 = 32
avg monthly income based on hbm way = avg Expenditure + avg Savings = 32 + 10
total income = 42 * 12 = 588
avg income based on annual calendar = 588/12 = 49
avg Expenditure based on annual calendar = 288/12 = 24
avg savings based on annual calendar = 49 - 24 = 25
difference between both savings = 25 - 10 = 15
hence, it is b
By hoola Boola Moola(hbm) way of calculating:
monthly avg savings based on hbm way = 10
Annual Expenditure = 288
monthly Expenditure based on hbm way = 288/9 = 32
avg monthly income based on hbm way = avg Expenditure + avg Savings = 32 + 10
total income = 42 * 12 = 588
avg income based on annual calendar = 588/12 = 49
avg Expenditure based on annual calendar = 288/12 = 24
avg savings based on annual calendar = 49 - 24 = 25
difference between both savings = 25 - 10 = 15
hence, it is b
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)
Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)
Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
- kshsharma86
- Newbie | Next Rank: 10 Posts
- Posts: 1
- Joined: Mon Jul 15, 2013 2:16 am
But Sir, average monthly expenditure according to the hbm way is being calculated considering 9 months a year and not 12 months a year while the criterion for savings is not known(it's simply written 10 Moolahs here). So, how can you add the monthly expenditure(288/9=32) and the savings(i.e 10)?
Thankyou!!
Thankyou!!