Bunuel wrote:

If each of 4 subsidiaries of Corporation R has been granted a line of credit of $700,000 and each of the other 3 subsidiaries of Corporation R has been granted a line of credit of $112,000, what is the average (arithmetic mean) line of credit granted to a subsidiary of Corporation R?

(A) $1,568,000

(B) $448,000

(C) $406,000

(D) $313,600

(E) $116,000

A Logical way of answering the question in just 20 seconds (this is what I took to answer it ...Average of 4 Subsidiary = 700_____________________Average of other 3 Subsidiary = 112 (lets take 100 approx)

Average of all 7 Subsidiary would be exactly (700+100)/2=400

But since there are 4 subsidiary with average of 400 so the average must be closer to 700 than 100

i.e. Average must shift towards greater than 400 and the change won't just be 6 (i.e. wont be 406) because we already have taken value of 3 subsidiary lesser than actual value and we are yet to consider one more subsidiary

Hence, Only relevant choice is 448

Answer: Option B

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