It is currently 17 Oct 2017, 12:02

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A certain bank has ten branches. What is the total amount of

Author Message
TAGS:

Hide Tags

Director
Status: Finally Done. Admitted in Kellogg for 2015 intake
Joined: 25 Jun 2011
Posts: 535

Kudos [?]: 4113 [0], given: 217

Location: United Kingdom
GMAT 1: 730 Q49 V45
GPA: 2.9
WE: Information Technology (Consulting)
A certain bank has ten branches. What is the total amount of [#permalink]

Show Tags

18 Nov 2011, 14:00
8
This post was
BOOKMARKED
00:00

Difficulty:

95% (hard)

Question Stats:

36% (01:50) correct 64% (01:03) wrong based on 164 sessions

HideShow timer Statistics

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.
[Reveal] Spoiler: OA

_________________

Best Regards,
E.

MGMAT 1 --> 530
MGMAT 2--> 640
MGMAT 3 ---> 610
GMAT ==> 730

Kudos [?]: 4113 [0], given: 217

Manager
Joined: 29 Oct 2011
Posts: 180

Kudos [?]: 157 [0], given: 19

Concentration: General Management, Technology
Schools: Sloan '16 (D)
GMAT 1: 760 Q49 V44
GPA: 3.76
Re: A certain bank has ten branches. What is the total amount of [#permalink]

Show Tags

19 Nov 2011, 12:11
I believe D is correct.

Total of 10 branches.

(1) 400 customers per branch times \$400k per customer times 10 branches gives you total assets. SUFFICIENT.

(2). \$160mil per branch times 10 branches gives total assets. SUFFICIENT.

Kudos [?]: 157 [0], given: 19

Current Student
Joined: 13 Feb 2011
Posts: 104

Kudos [?]: 48 [0], given: 3385

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

Show Tags

06 Aug 2014, 20:15
3
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)

Kudos [?]: 48 [0], given: 3385

Manager
Joined: 22 Feb 2009
Posts: 214

Kudos [?]: 173 [3], given: 148

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

Show Tags

08 Aug 2014, 23:01
3
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

_________________

.........................................................................
+1 Kudos please, if you like my post

Kudos [?]: 173 [3], given: 148

Manager
Joined: 22 Aug 2014
Posts: 190

Kudos [?]: 11 [0], given: 49

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

Show Tags

20 Apr 2015, 01:26
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

Kudos [?]: 11 [0], given: 49

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 16761

Kudos [?]: 273 [0], given: 0

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

Show Tags

28 Sep 2016, 16:37
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.
_________________

Kudos [?]: 273 [0], given: 0

Manager
Joined: 23 Jun 2009
Posts: 201

Kudos [?]: 101 [1], given: 138

Location: Brazil
GMAT 1: 470 Q30 V20
GMAT 2: 620 Q42 V33
Re: A certain bank has ten branches. What is the total amount of [#permalink]

Show Tags

10 Nov 2016, 10:51
1
KUDOS
my two cents...
Attachments

foto.jpg [ 405.31 KiB | Viewed 987 times ]

Kudos [?]: 101 [1], given: 138

Re: A certain bank has ten branches. What is the total amount of   [#permalink] 10 Nov 2016, 10:51
Display posts from previous: Sort by