DS: Finding percents from averages

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DS: Finding percents from averages

by Striver » Fri Jun 08, 2012 6:30 am
Each employee on a certain task force is either a manager or director. What percent of the employees on the task force are directors?

(1) The average (arithmetic mean) salary of the managers on the task force is $5,000 less than the average salary of all employees on the task force.

(2) The average (arithmetic mean) salary of the directors on the task force is $15,000 greater than the average salary of all employees on the task force.
Source: — Data Sufficiency |

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by dimochka » Fri Jun 08, 2012 8:08 am
There are two ways to do it - try to think through it and possibly plug in numbers, or actually write down the equations and simplify. Often in questions where you don't need an exact value for the variables, but rather a ratio, you should be able to plug numbers in to solve it.

If you know how weighted averages work, you know that you cannot just average them out, because they hold different weights (example if we have one director earning 10k and 1 manager earning 5k, the average salary will not be the same as 10 directors earning 10k on average, and 1 manager earning 5k).
Based on this logic, neither (1) nor (2) is sufficient on its own.

Now let's consider the case of both being true.
If we had the same number of managers and directors, their average would be an equal distance from 100k (so if there are 5 of each, and directors are making 120k, managers would need to be making 80k to exactly offset). Thus, since the total average is closer to the manager average, there are more managers than directors (for each director salary that's farther away from the mean, we need several manager salaries to bring it back to the mean).

We use this idea to calculate how many managers are needed for each director based on what we know.
Assume we have 1 director and x managers:
average employee salary = 100k
average director salary = 115k
average manager salary = 95k

(115*1 + 95x) / (1+x) = 100
115+95x = 100+100x
15 = 5x
x = 3
For each director, there are 3 managers. Thus 1/4 of the employees are directors, and 3/4 are managers.

Answer is C

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For those who are interested, here's the fully mathematical answer:

Let M = # of managers
Let Sm = Avg salary of managers
Let D = # of directors
Let Sd = Avg salary of directors

(1) Sm = (m * Sm + d * Sd) / (m + d) - 5000
(2) Sd = (m * Sm + d * Sd) / (m + d) + 15000

Subtract (1) from (2) to get Sd - Sm = 20000, and so Sm = Sd - 20000
Plug in to first equation:

Sd - 20000 = [m * (Sd - 20000) + d * Sd] / (m + d) - 5000
Sd - 20000 = (m * Sd - 20000m + d * Sd) / (m + d) - 5000

Move the 5000 over, and multiply both sides by (m + d):

Sd - 15000 = (m * Sd - 20000m + d * Sd) / (m + d)
m * Sd + d * Sd - 15000m - 15000d = m * Sd - 20000m + d * Sd

m * Sd and D * Sd cancel out on both sides:

-15000m - 15000d = -20000m
5000m = 15000d
m = 3d --> the number of managers is 3x the number of directors.

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by Stuart@KaplanGMAT » Fri Jun 08, 2012 8:28 am
Hi!

Dimochka presents a great mathematical explanation, but let's focus on efficiency, remembering one key rule:

To get the point on a DS question, you don't need to actually answer the question - you just need to determine whether it's possible to do so.

Keeping this rule in mind will save you a lot of time in DS!

Along those lines, let's tackle the question, starting with Step 1 of the Kaplan Method for DS: analyze the stem.
Each employee on a certain task force is either a manager or director. What percent of the employees on the task force are directors?
We see a "what" question, so we know we're being asked for a value. We think: for sufficiency, we need one and only one possible value.

We also note that we have a percent question, so we jot down the relevant formula:

% = part/whole = #directors/#(directors+managers)

Next, we think about THE most powerful rule in data sufficiency: # of equations vs # of unknowns. Right now we have 1 equation and 3 unknowns. What do we need to solve? 2 more distinct and linear equations OR 1 equation that gives us the exact ratio in the equation above.

Step 2 of the Kaplan Method for DS: Evaluate the Statements

(1) we can certainly turn this statement into a linear equation. Let's go through a short checklist:

- does it introduce any new variables? NO
- is it identical to the original equation? NO
- does it give us the exact ratio we want? NO

only 1 standard equation, but we needed 2... insufficient.

(2) identical kind of statements as (1); (1) was insufficient, so this definitely will be as well.

TOGETHER: 2 distinct linear equations + the original equation means that we have 3 equations for our 3 unknowns... SUFFICIENT, choose (C)!

* * *

As an aside, if we wanted to solve, a graphical approach is the fastest way to do so for this type of weighted average question.

A fancy word for the method we're about to use is "alligation" (I just learned that it had a special name a little while ago!). Of course, understanding how it works is far more important to knowing what it's called.

When you have 2 subgroups and an overall average, plot the subgroup averages and the overall average on the number line. Using the info from both statements, we have:

Managers ---------- all ----------------------------- directors

Next, write in the known information:

Managers ------5000------ all ---------------15000-------------- directors

Finally, you can now write out the ratio of the parts:

Managers/Directors = 15000/5000 = 3/1

and we quickly see that directors make up 1 in 4 parts, i.e. 25% of the whole.

In generic terms, the ratio always works out as:

group 1 average---------------x-------------overall average--------y--------group 2 average

group 1/group 2 = y/x

This method is extremely useful both in problem solving and data sufficiency!
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by GMATGuruNY » Fri Jun 08, 2012 8:30 am
Striver wrote:Each employee on a certain task force is either a manager or director. What percent of the employees on the task force are directors?

(1) The average (arithmetic mean) salary of the managers on the task force is $5,000 less than the average salary of all employees on the task force.

(2) The average (arithmetic mean) salary of the directors on the task force is $15,000 greater than the average salary of all employees on the task force.
A quick review of WEIGHTED AVERAGES.

In a certain group:
Let M = the average weight of the men
Let W = the average weight of the women.
Let G = the average weight of the entire group.

If the distance between M and G is x times the distance between W and G, then the NUMBER of men is 1/x times the NUMBER of women.
Note the RECIPROCAL relationship between the DISTANCES and the NUMBER of each group.

In the problem at hand:

Statement 1: The distance between the average salary of the directors and the average salary of the entire task force = 15,000.
Statement 2: The distance between the average salary of the managers and the average salary of the entire task force = 5000.
The directors' distance is THREE TIMES the managers' distance.
This means that the NUMBER of directors is 1/3 times the NUMBER of managers.
Thus, for every 3 managers, there is 1 director.
Thus, of every 4 employees, exactly one is a director, implying that the directors = 1/4 = 25% of the task force.

The correct answer is C.
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by ronnie1985 » Sat Jun 09, 2012 10:58 am
Given: Only Directors and Managers are there.

To find: No of Directors

Solution:

Let Directors = D
Managers = M
Salary (avg) of Directors = Sd
Salary (avg) of Managers = Sm

S1:
Sm = (Sd*D+Sm*M)/(D+M)-5000
N S

S2:
Sd = (Sd*D+Sm*M)/(D+M)+15000
NS

Comb
Relation between Sm and Sd can be obtained which will be a linear relation ship.

Sm = Sd-A

Putting in any of the equations giving the relationship of number of Directors and Managers gives us the ratio of managers to directors hence sufficient.

(C)
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