Hello,
Can you please assist with this question? I was not sure how to solve Statement 2.
What is the average income at Town A?
(1) The combined income of the people at Town A is $42,000,000.
(2) 60 percent of the people at Town A have an average income of
$36,000 and the rest have an average income of $55,000.
OA: B
Thanks,
Sri
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Weighted averages - To find the average income of the town
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gmattesttaker2
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Statement 1: The combined income of the people in Town A is $42,000,000.gmattesttaker2 wrote: What is the average income in Town A?
(1) The combined income of the people in Town A is $42,000,000.
(2) 60 percent of the people in Town A have an average income of
$36,000 and the rest have an average income of $55,000.
Without knowing the number of people in Town A, we cannot determine the average income.
INSUFFICIENT.
Statement 2: 60 percent of the people in Town A have an average income of $36,000 and the rest have an average income of $55,000.
60% = 3/5.
Thus, of every 5 people, 3 earn an average of $36000, while the remaining 2 people earn an average of $55000.
Resulting average for every 5 people = (3*36000 + 2*55000)/5 = 43,600.
SUFFICIENT.
The correct answer is B.
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As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
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Hi Sri,
Mitch has provided a great explanation for this question. I want to add a bit more "proof" to Fact 2, in the (likely) event that you face something like this on the Official GMAT...
Fact 2 essentially tells you about a 60/40 ratio between people who average $36,000 and those who average $55,000.
That could be
3 @ $36,000
2 @ $55,000
Average = [3(36,000) + 2(55,000)]/5 = 43,600
It could also be
6 @ $36,000
4 @ $55,000
Average = [6(36,000) + 4(55,000)]/10 = 43,600
Since the average stays the same, Fact 2 is SUFFICIENT. If you're ever unsure about how to assess ratio "data", then just track two examples - if the answers are the same, then you're dealing with Sufficient information.
GMAT assassins aren't born, they're made,
Rich
Mitch has provided a great explanation for this question. I want to add a bit more "proof" to Fact 2, in the (likely) event that you face something like this on the Official GMAT...
Fact 2 essentially tells you about a 60/40 ratio between people who average $36,000 and those who average $55,000.
That could be
3 @ $36,000
2 @ $55,000
Average = [3(36,000) + 2(55,000)]/5 = 43,600
It could also be
6 @ $36,000
4 @ $55,000
Average = [6(36,000) + 4(55,000)]/10 = 43,600
Since the average stays the same, Fact 2 is SUFFICIENT. If you're ever unsure about how to assess ratio "data", then just track two examples - if the answers are the same, then you're dealing with Sufficient information.
GMAT assassins aren't born, they're made,
Rich
