GMAT prep-average median

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GMAT prep-average median

by taneja.niks » Sat Oct 16, 2010 11:33 am
Last month 15 homes were sold in the town . The average (arithmetic mean) sale price of the homes was 1,50,000 and the median was 1,30,000 which of the following must be true??

1. At least one of the homes was sold for more than 1,65,000
2. at least one of the homes was sold for more than 1,30,000 and less than 1,50,000.
3. At least one of the homes was sold for less than 1,30,000

Please explain..........
Source: — Data Sufficiency |

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by shovan85 » Sat Oct 16, 2010 11:45 am
We have median and mean.

Calculate total 15 houses price = 1,50,000 * 15 = 2250000
8th House cost = 1,30,000. (Median)

Now we know that total house from the first to 7th (7 houses) each can cost < or = 1,30,000

For the maximum cost of these 7 houses let us take each value as 1,30,000 (We need to prove must be true so will try to destroy a single possibility to knock that option out)
Thus total first 8 houses will cost(At best) = 1,30,000*8 = 1040000

Rest 7 houses cost = 2250000 - 1040000 = 1210000.

Each house cost 1210000/7 = 172857 (approx)

1. At least one of the homes was sold for more than 165,000: So if on an average if you can get a value of rest 7 houses to be more than 170000 then at least one house has to be more than 1,65,000 . This is a MUST true option.

2 At least one of the homes was sold for more than 130,000 and less than 150,000: This is not a necessary case as we can have all the 7 houses (those cost more than 130000[median]) as 172857 (approx). Thus 2 is a could be true option but not a Must be true option.

3. At least one of the homes was sold for less than 130,000: Still this is a could be true option. You can see while proving 1 we take the first 7 houses to their extreme values by taking all 130000 (each). So this is not at Must be True option.

Only Option 1 MUST BE TRUE .

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by lunarpower » Thu Oct 28, 2010 4:57 am
the main deal with 'at least one' problems - which come up more often on probability than on other problem types - is that they're very difficult to treat directly. instead, when you see 'at least one', you should treat the OPPOSITE situation - i.e., none.

so, because 'at least one' and 'none' are opposites, the following statements are exactly equivalent:
* there must be at least one
* it's IMPOSSIBLE to have NONE
the second is the easier way to think about it.

so:
in this problem, you should consider the case in which NONE of the homes was sold for whatever price is mentioned in the problem, and see whether it's IMPOSSIBLE.

NOTE: I AM NOT GOING TO WRITE THE THOUSANDS. so, '130' means $130,000. you'll thank me; this problem will be much easier to read.

(preface)
the median of 15 values is the value that comes 8th in the list. therefore, the first seven values are 130 or less, the 8th value is 130, and the 9th-15th values are 130 or more.
also, Sum = Average x Number of data points, so the sum of all the prices is 15 x 150 = 2250.

(i)
let's consider the case in which NONE of the homes was sold for more than 165.
the MAXIMUM sum of prices in this case would be 8(130) + 7(165), which is the case if all of the first 8 values are 130 each (the biggest they can be) and values 9-15 are 165 each.
that's a total of 1040 + 1155 = 2195.
not high enough.
therefore, it's IMPOSSIBLE to have NO prices over 165, so this statement must be true.

(ii)
let's try to create a list with NO such house prices.
let the first 7 prices be, say, 100 each.
the 8th is 130.
so the first 8 have a sum of 830, meaning that the highest 7 have a sum of 2250 - 830 = 1420.
there are all kinds of ways to do that with no values between 130 and 150, but the simplest is to make all seven of them equal to 1420 / 7, which is greater than 200.
so (ii) doesn't have to be true.

(iii)
let's try to create a list with NO such house prices.
this would mean that the first 8 prices are all 130.
so, the last 7 prices sum to 2250 - 8(130) = 1210.
that's an average of 1210/7, which is a shade over 170. you could let all 7 of the high prices equal that value, and it would work.
therefore, (iii) doesn't have to be true.

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by goyalsau » Fri Oct 29, 2010 8:39 am
lunarpower wrote:the main deal with 'at least one' problems - which come up more often on probability than on other problem types - is that they're very difficult to treat directly. instead, when you see 'at least one', you should treat the OPPOSITE situation - i.e., none.

so, because 'at least one' and 'none' are opposites, the following statements are exactly equivalent:
* there must be at least one
* it's IMPOSSIBLE to have NONE
the second is the easier way to think about it.

so:
in this problem, you should consider the case in which NONE of the homes was sold for whatever price is mentioned in the problem, and see whether it's IMPOSSIBLE.
Awesome..............
Your approach is excellent but In pressure cooker situation. I don't know whether i be able to use it or not.
Saurabh Goyal
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