Critical Reasoning

Which of the following most logically completes the argument?

Yorco and Zortech are two corporations that employ large numbers of full-time workers who are paid by the hour. Public available records indicate that Yorco employs roughly the same number of such hourly wage workers as Zortech does but spends a far higher total sum per year on wages for such workers.Therefore,hourly wages must be higher,on average at Yorco than at Zortech,since__________

A).Zortech spends a higher total sum per year than Yorco does to provide its hourly wage workers with benefits other than wages.

B) The work performed by hourly wage workers at Zortech does not require a significantly higher level of skill than the work performed by hourly wage workers at Yorco does.

C) The proportion of all company employees who are hourly wage workers is significantly greater at Yorco than it is at Zortech.

D).Overtime work,which is paid at a substantially higher rate than work done during the regular work week,is rare at both Yorco and Zortech.

E). The highest hourly wages paid at Yorco are higer than the highest hourly wages paid at Zortech.

conclusion

hourly wages must be higher,on average at Yorco than at Zortech,

And Since indicates...we need to find a reason for conclusion

A).Zortech spends a higher total sum per year than Yorco does to provide its hourly wage workers with benefits other than wages.

Does not gives any explanation for conclusion

C) The proportion of all company employees who are hourly wage workers is significantly greater at Yorco than it is at Zortech.

Again fails to give reason for conclusion. Gives a reason why Y spends more but cannot say anything about hourly wages

B

) The work performed by hourly wage workers at Zortech does not require a significantly higher level of skill than the work performed by hourly wage workers at Yorco does.

Perfect Answer

Hope this helps

IMO C

Yes v need to find the reason why the conclusion has been derived...

If the proportion of hourly employes in yarco is greater than zortec then it is justified why yarco spends more than zortec.

I think talking bout skills of the workers goes a lil bit out scope.

IMO ... Pls correct my thinking.

I will solve this analytically

total spending

Y>Z

hourly wages must be higher,on average at Yorco than at Zortech

so why will Hourly wages be higher??

C can be correct if the questions ask for the total spending

but B is correct because the conclusion only says hourly wages and not total

Hope this makes things more clear

It's D. If Yorco spent more money on their hourly workers because they worked more overtime, then it's not he case that they get paid more per hour. They were paid more because they worked more. If we say that both companies used similar amounts of overtime, then we can conclude that Yorco hourly wage employees made more money per hour than Zortec.

PAB2706 wrote:IMO C

Yes v need to find the reason why the conclusion has been derived...

If the proportion of hourly employes in yarco is greater than zortec then it is justified why yarco spends more than zortec.

I think talking bout skills of the workers goes a lil bit out scope.

IMO ... Pls correct my thinking.

We are looking for evidence to justify that hourly wages ON THE AVERAGE MUST be higher at Yorco than at Zortech.

Hourly wages on the average MUST be higher at Yorco than at Zortech if one of this case scenario happens.

1) The number of hourly wages workers(all things being equal) is higher at Yorco than at Zortech.(information in the stem says the number is the same)

2.Yorco pays very high hourly wages on the average more than Zortech (since they have the same number of hourly wages workers)

3) The number of hours done at Yorco is higher than at Zorco.(if they have the same number of hourly wages workers and the same number of pay per hours)

4.Yorco pays very high hourly wages on overtime more than Zortech (since they have the same number of hourly wages workers)Eliminate D

OA is D. IMO, the answer should be E,based on my analysis of each answer choice.

D."Overtime work,which is paid at a substantially higher rate than work done during the regular work week,is rare at both Yorco and Zortech." This does not say anything about the difference.It just eliminate another possibility for the difference.

Experts,over to you.

I am was confused between C and E. Eliminate C as it is opposite to the fact mentioned in the argument.

Argumnet says that the no of hourly workers are roughly same and C says that there is significant difference which is contradictory.

Hence E can be the answer but might only if the author means that total highest hourly wages are greater than it is in zortec


D can be correct as follows -

avg hour wages = (wages + overtime)/no of employees

Y(wages) > Z

wages+overtime/no of emp yorko > wages + overtiem/ no of empl zorte


employees are same
Therefore,
Wages + overtime > wages + overtime (zortec)

Now above equality will be true only if the overtime wages are same or zero.

Acording to D, ovvertime wages are zero

Hence, Y(wages) > Z (wages)


What is the source of this Question??

awesomeusername wrote:It's D. If Yorco spent more money on their hourly workers because they worked more overtime, then it's not he case that they get paid more per hour. They were paid more because they worked more. If we say that both companies used similar amounts of overtime, then we can conclude that Yorco hourly wage employees made more money per hour than Zortec.

I second for D
I also think that the total amount spent=#workers*#hours worked*avrg salary
So, we need to know the number of hours worked and D lets us know that the numbers are the same for Y and Z,so wages must be different because of higher salaries at Z

schumi_gmat wrote:I am was confused between C and E. Eliminate C as it is opposite to the fact mentioned in the argument.

Argumnet says that the no of hourly workers are roughly same and C says that there is significant difference which is contradictory.

Hence E can be the answer but might only if the author means that total highest hourly wages are greater than it is in zortec


D can be correct as follows -

avg hour wages = (wages + overtime)/no of employees

Y(wages) > Z

wages+overtime/no of emp yorko > wages + overtiem/ no of empl zorte


employees are same
Therefore,
Wages + overtime > wages + overtime (zortec)

Now above equality will be true only if the overtime wages are same or zero.

Acording to D, ovvertime wages are zero

Hence, Y(wages) > Z (wages)


What is the source of this Question??

GMAT question.Really,all the questions i have posted in this forum are some of the toughest you can see on GMAT.

Sample Values..
# of employees in Y == 10
# of employees in Z == 10


Total Wages in Y = 500
Total Wages in Z = 100

Lets say that they worked for ONE DAY.
Case A)
Total Hours worked in ONE DAY = 10 hours

# of work hours(assuming all employees work) = 10 * 10 = 100 employee work hours.
There fore,
Average hourly wage in Y = ( total employee work hours / # of employees) = 5

# of work hours = 10 *10 = 100 employee hours.

Average hourly wage in Y = ( total employee work hours / # of employees) = 5

Average hourly wage in Z = 1.

This is irrespective of the skills of the employees as mentioned in B.
Even if the skills required in Y is greater than Z, the average hourly wage still holds true where in the average hourly wage in Y will be more, considering few ppl get paid higher and few lower..
Although the point of skill level would mean that the work can get done faster this cannot be infered from the answer choice. what if the nature of the job in Y is very complicated and even the higher skilled ppl would put in same # of hours as put in Z...


Case B)
Here
Number of hours worked in Y is 20 (for that same one day.) ( 10 overtime)

# of employee hours in Y = 20 * 10 = 200

Average hourly wage = 500/200 = 2.5

number of hours worked in Z is 10.
# of employee hours in Z = 10*10 = 100
Average hourly wage = 100/100 = 1.0

As noticed above, the average hourly rate in Y decreases if we introduce the overtime factor and hence ( overtime should be rare for the above to hold true).

ANSWER :
D).Overtime work,which is paid at a substantially higher rate than work done during the regular work week,is rare at both Yorco and Zortech.

My $0.02.

here in this question the conclusion is given. i.e. average hourly wages are more at yorco than those at zortech. now E states almost similar thing that has been mentioned in the conclusion itself. but what we need here is the statement that is not mentioned in the stimuli and supports the conclusion, so D states the correct option that we are looking for. coz here if we consider D in the stimuli, then it supports the argument and thus is the answer.

Looking at it now, D makes sense

D is the best for this question