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The 10 households on a certain street have household incomes

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by AAPL » Tue Dec 17, 2019 1:21 pm
GMAT Paper Tests

The 10 households on a certain street have household incomes that range from $34000 to $150000 and an average(arithmetic mean) household income of $60000. If the household with the highest income and the one with the lowest income and the one with the lowest income are excluded, what is the average household income for the remaining 8 households?

A. $41000
B. $47000
C. $52000
D. $61000
E. $75000

OA C
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by Gene@KaplanGMAT » Tue Dec 17, 2019 4:49 pm
10 households with average of $60K.
So, their sum is 10x60 = $600K.
Remove the highest ($150K), and the lowest ($34K), and we're left with 600 - 150 - 34 = $416K

$416K divided by 8 houses ----> $52K. Answer (C).

When the GMAT's talking about an average, they're also talking about a sum, and vice-versa.

And side note: If you were running out of time and had to make a strategic guess, the $34K house is much closer to the average than the $150K house, so removing the highest and lowest will have a net effect of bringing the average DOWN, so you can eliminate (D) and (E). $$$$ $$$$
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by Scott@TargetTestPrep » Fri Jan 10, 2020 1:04 pm
AAPL wrote:GMAT Paper Tests

The 10 households on a certain street have household incomes that range from $34000 to $150000 and an average(arithmetic mean) household income of $60000. If the household with the highest income and the one with the lowest income and the one with the lowest income are excluded, what is the average household income for the remaining 8 households?

A. $41000
B. $47000
C. $52000
D. $61000
E. $75000

OA C
The sum of the 10 incomes is 60,000 x 10 = 600,000. Subtracting out the lowest and highest income we are left with:

600,000 - 34,000 - 150,000 = 416,000 for an average of 416,000/8 = 52,000

Answer: C

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