A certain bank has ten branches. What is the total amount of : GMAT Data Sufficiency (DS)
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# A certain bank has ten branches. What is the total amount of

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A certain bank has ten branches. What is the total amount of [#permalink]

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18 Nov 2011, 13:00
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A certain bank has ten branches. What is the total amount of assets under management at the bank?

(2). $160mil per branch times 10 branches gives total assets. SUFFICIENT. Current Student Joined: 12 Feb 2011 Posts: 104 Followers: 0 Kudos [?]: 30 [0], given: 3362 Re: A certain bank has ten branches. What is the total amount of [#permalink] ### Show Tags 06 Aug 2014, 19:15 1 This post was BOOKMARKED The OA is B. Following is the explanation from MGMAT: (1) INSUFFICIENT: When the average assets under management (AUM) per customer of each of the 10 branches are added up and the result is divided by 10, the value that is obtained is the simple average of the 10 branches’ average AUM per customer. Multiplying this number by the total number of customers will not give us the total amount of assets under management. The reason is that what is needed here is a weighted average of the average AUM per customer for the 10 branches. Each branch’s average AUM per customer needs to be weighted according to the number of customers at that branch when computing the overall average AUM per customer for the whole bank. (2) SUFFICIENT: The average of$160 million in assets under management per branch spoken about here was NOT calculated as a simple average of the 10 branches’ average AUM per customer as in statement 1. This average was found by adding up the assets in each bank and dividing by 10, the number of branches (“the total assets per branch were added up…”). To regenerate that original total, we simply need to multiply the $160 million by the number of branches, 10. (This is according to the simple average formula: average = sum / number of terms) The correct answer is B. Manager Joined: 22 Feb 2009 Posts: 229 Followers: 5 Kudos [?]: 133 [2] , given: 148 Re: A certain bank has ten branches. What is the total amount of [#permalink] ### Show Tags 08 Aug 2014, 22:01 2 This post received KUDOS enigma123 wrote: A certain bank has ten branches. What is the total amount of assets under management at the bank? (1) There is an average of 400 customers per branch. When each branch’s average assets under management per customer is computed, these values are added together and this sum is divided by 10. The result is$400,000 per customer.
(2) The bank has a total of 4,000 customers. When the total assets per branch are added up, each branch is found to manage, on average, 160 million dollars in assets.

As the OA is not provided, for me its D. Can someone please have a look and let me know if you think otherwise?

(1) we have assets for each branch = a1, a2,...a10; customers for each brand = c1,c2,...c10
(a1/c1 + a2/c2+ ....+a10/c10)/10= 400,000
On the other hand, total amount of assets under management for each brand= C = c1+ c2+....+c10, Total customer =C = c1+ c2+...+c10
Total assets/Total customer = A/C = Average assets per customer for all brand.
A/C = (a1+...+a10)/(c1+...+c10) is different from (a1/c1 + a2/c2+ ....+a10/c10).
INSUFFICIENT

(2) We can calculate total assets per branch * 10 branches = total amount of assets = 160million*10
SUFFICIENT

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Re: A certain bank has ten branches. What is the total amount of [#permalink]

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20 Apr 2015, 00:26
enigma123 wrote:
A certain bank has ten branches. What is the total amount of assets under management at the bank?
(1) There is an average of 400 customers per branch. When each branch’s average assets under management per customer is computed, these values are added together and this sum is divided by 10. The result is $400,000 per customer. (2) The bank has a total of 4,000 customers. When the total assets per branch are added up, each branch is found to manage, on average, 160 million dollars in assets. As the OA is not provided, for me its D. Can someone please have a look and let me know if you think otherwise? (1) we have assets for each branch = a1, a2,...a10; customers for each brand = c1,c2,...c10 (a1/c1 + a2/c2+ ....+a10/c10)/10= 400,000 On the other hand, total amount of assets under management for each brand= C = c1+ c2+....+c10, Total customer =C = c1+ c2+...+c10 Total assets/Total customer = A/C = Average assets per customer for all brand. A/C = (a1+...+a10)/(c1+...+c10) is different from (a1/c1 + a2/c2+ ....+a10/c10). INSUFFICIENT (2) We can calculate total assets per branch * 10 branches = total amount of assets = 160million*10 SUFFICIENT great explanation..thank you so much! +1 kudos! B is indeed the correct answer GMAT Club Legend Joined: 09 Sep 2013 Posts: 13510 Followers: 577 Kudos [?]: 163 [0], given: 0 Re: A certain bank has ten branches. What is the total amount of [#permalink] ### Show Tags 28 Sep 2016, 15:37 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Manager Joined: 23 Jun 2009 Posts: 199 Location: Brazil GMAT 1: 470 Q30 V20 GMAT 2: 480 Q33 V22 GMAT 3: 550 Q44 V28 GMAT 4: 630 Q44 V33 GMAT 5: 600 Q43 V33 GMAT 6: 620 Q42 V34 Followers: 4 Kudos [?]: 43 [1] , given: 132 Re: A certain bank has ten branches. What is the total amount of [#permalink] ### Show Tags 10 Nov 2016, 09:51 1 This post received KUDOS my two cents... Attachments foto.jpg [ 405.31 KiB | Viewed 299 times ] Re: A certain bank has ten branches. What is the total amount of [#permalink] 10 Nov 2016, 09:51 Similar topics Replies Last post Similar Topics: The total amount that a certain bank loaned in 1998 was$47 million. 3 16 Aug 2016, 02:17
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