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 Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

56% (01:29) correct
44% (01:52) wrong based on 124 sessions

HideShow timer Statistics

Hey everyone.

Please let me know how you separate between C and E.

i understand why C is right, but still dont understand why E is wrong.

Lets say i had in 1980 three companies - that all had 50 workers. and in 2000 - we have one company with 2 workers, one company with 5 workers and one company with 1,000,000 workers. the median will be lower but the total number of workers will be higher in 2000 than in 1980.

The argument says the 'typical' software firm employs fewer people now than in 1980. That conclusion is based on a study which compares the number of employees in 1980 and now at the *same* firms. The study thus ignores any firms that came into existence after 1980. Those newer firms might be today's 'typical' software firms, so you can't just ignore them, which is why C is correct.

E is not correct; if you want to work out what is 'typical', you normally want to look at the median and not the average. The average takes into account wildly extreme values (that is, values which are *not* 'typical'), and the median does not. For example, if some entrepreneur making $10 billion per year were to buy a house in an otherwise low-income neighbourhood, the average annual income in that neighbourhood would be enormous, because that $10 billion would make a significant contribution to the sum of the incomes in the neighbourhood. The average would not represent the 'typical' income level for that neighbourhood. The median would, however, represent in some way the typical income, since (being a bit imprecise) half of people will earn more than the median, and half will earn less. The presence of one extreme income in the neighbourhood barely affects the median at all. So for the argument in question, you genuinely do want to look at the median and not the average precisely because you do not want some extreme values to distort your statistics.
_________________

GMAT Tutor in Toronto

If you are looking for online GMAT math tutoring, or if you are interested in buying my advanced Quant books and problem sets, please contact me at ianstewartgmat at gmail.com

hmm... im sorry im nagging again about this one... i understand why C is right, but still dont understand why E is wrong.

Lets say i had in 1980 three companies - that all had 50 workers. and in 2000 - we have one company with 2 workers, one company with 5 workers and one company with 1,000,000 workers. the median will be lower but the total number of workers will be higher in 2000 than in 1980.

hmm... im sorry im nagging again about this one... i understand why C is right, but still dont understand why E is wrong.

Lets say i had in 1980 three companies - that all had 50 workers. and in 2000 - we have one company with 2 workers, one company with 5 workers and one company with 1,000,000 workers. the median will be lower but the total number of workers will be higher in 2000 than in 1980.

Am i missing something?

I think you're trying to answer a different question from the one that's being asked.

The question is not asking whether the total number of workers increased. If it were, then yes, the mean would be a better measurement than the median. The question asks instead about the number of workers at *one* 'typical' software firm. The median is more likely to tell you what is 'typical' than is the mean, because the median is not affected by crazy extreme values.
_________________

GMAT Tutor in Toronto

If you are looking for online GMAT math tutoring, or if you are interested in buying my advanced Quant books and problem sets, please contact me at ianstewartgmat at gmail.com

In addition to the qualified reasoning above: "E" diverts the context from "firm" to "industry". Firm is just one company. Industry is the entire Software industry.

Conclusion: Number of people employed by a firm decreased.

E's reasoning: Median is not a good indicator for the number of employees in an industry.

Author: Ok true!!! But, Median may be a good indicator for deducing the number of employees in a software firm.

This becomes a fact that has little to no effect on the conclusion.
_________________

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.

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.

We’ve given one of our favorite features a boost! You can now manage your profile photo, or avatar , right on WordPress.com. This avatar, powered by a service...

Sometimes it’s the extra touches that make all the difference; on your website, that’s the photos and video that give your content life. You asked for streamlined access...

“Keep your head down, and work hard. Don’t attract any attention. You should be grateful to be here.” Why do we keep quiet? Being an immigrant is a constant...

“Keep your head down, and work hard. Don’t attract any attention. You should be grateful to be here.” Why do we keep quiet? Being an immigrant is a constant...