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# It appears that the number of people employed by a typical

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Manager
Joined: 11 Jul 2005
Posts: 86
Location: New York
It appears that the number of people employed by a typical [#permalink]

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25 Oct 2005, 10:26
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It appears that the number of people employed by a typical American software firm decreased in the 1980's and 1990's. This trend is borne out by 2 studies conducted 20 years apart . Ina large 1980 sample of randomnly chosen American Soaftware firms,the median size of the firm's workforce populations was 65. When those same firms were studied again in 2000, the median size was 57.

Which of the following points to the most serious logical flaw in the reasoning above?

a) The median number of employees in American firms in many industries decreased during the 1980's and 1990's.
b)During the 1980's and 1990's ,mnay software firms increased the extent to which they relied on subcontractors to write code.
c)The data in the studies refer only to companies that existed in 1980.
d)The studies focussed on the number of employees but there are many ways of judging a firm's size ,such as revenues and profits.
e)The median number of employees is not as sound a measure of the number of employees employed in an industry as is ther mean number of employees ,which accounts for the vast size of the few large firms that dominate most industries.
Director
Joined: 29 Aug 2005
Posts: 500

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31 Oct 2005, 23:32
Using POE for this Q
A - Out of scope.
B - Incorrect. Contractors are also employees of some company.
C - Incorrect. We need to consider both 1980s and 1990s.
D - Out of scope.
E - Correct.

Hence E.
31 Oct 2005, 23:32
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