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Is the range of salary of 100 people smaller than 100,000? [#permalink]
14 Jan 2005, 08:53

Is the range of salary of 100 people smaller than 100,000?
1) The deviation of the salary of the 100 people is 20.
2) Each employee's salary is within 40000 of the average salary _________________

"Forums are meant to benefit all. No one is interested in knowing what your guesses are. Please explain the reasoning behind the answer you chose. This will also help you organize your thoughts quickly during the exam."

statement B says that each data point is 40000 (max) of the mean. Assuming that there are two values on either side of the mean. i.e mean + 40000 and mean - 40000 . maximum diff between the two values would be 80000. So stmt 2 is suff.

1) Can't say
Just the Std Deviation here does not give much data about range.
Need the mean to decide!

For example,
out of 100 people's salary, 98 people's salary can be closely clustered around the mean (reducing the std deviation), whereas 2 of the salaries can very low and very high values respectively. So eventhough the std deviation is low, the range can be high

or

Everyone of the 100 people's salaries can be closely clustered around the mean and therefore the range can be low.

2) Min salary = mean-40,000, Max salary = mean+40000.
Range = Max-Min
B)

From i, it is insufficient. here the information is given about deviation, which means mean deviation (or deviation from the mean) not the standard deviation. if the deviation means standard deviation and it is 20, then the statement is definetly sufficient to answer the question because a set of values whose SD is 20 cannot have range 100,000 unless probabilityy distribution is given. even if prob distribution is given, the range of such values can not be 100,000 with SD 20.

Re: Std Deviation - Salary [#permalink]
15 Jan 2005, 05:57

I am getting it as B.

(I) we cannot do anything with the deviation. So, insufficient.

(II)40000 can be the worstcase mean. Then 100 * 40,000 > 100,000. Thus, the answer to the question is a definite NO.

Hence it is B.

pb_india wrote:

Is the range of salary of 100 people smaller than 100,000? 1) The deviation of the salary of the 100 people is 20. 2) Each employee's salary is within 40000 of the average salary

_________________

Awaiting response,

Thnx & Rgds,
Chandra

gmatclubot

Re: Std Deviation - Salary
[#permalink]
15 Jan 2005, 05:57