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# Last year the average (arithmetic mean) salary of 10

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Senior Manager
Joined: 17 Aug 2005
Posts: 387

Kudos [?]: 148 [0], given: 0

Location: Boston, MA
Last year the average (arithmetic mean) salary of 10 [#permalink]

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19 Feb 2006, 16:40
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Last year the average (arithmetic mean) salary of 10 employees of Company X was \$42,800. What is the average salary of the same 10 employees this year?
1) For 8 of the 10 employees, this year's salary is 15 percent greater than last year's salary.
2) For 2 of the 10 employees, this year's salary is the same as last year's salary.

Please explain. OA to follow

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GMAT Club Legend
Joined: 07 Jul 2004
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19 Feb 2006, 18:40
Using 1) or 2) alone does not yield information about how much the remaining 2 employees (st1) or the remaining 8 employees (st2) earn. Insufficient.

Using 1) and 2)

Total salary last year = 428000

Assuming each earn 42800,
then total salary this year = 8*(1.15*42800) + 2*(42800) = 479,360

But if one of the employees earn 425300, then the remaining 9 employees earn 300 each,
then total salary could be (1.15*425300) + 7*(1.15*300) + 2(300) = 492,110
or could be 8*(1.15*300) + 425300 + 300 = 428,360

So unless we know how much each individual earns, we do not have sufficient information to know the averge salary this year.

Ans E

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Senior Manager
Joined: 17 Aug 2005
Posts: 387

Kudos [?]: 148 [0], given: 0

Location: Boston, MA

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20 Feb 2006, 07:29
OA is E. Great explanation.

Kudos [?]: 148 [0], given: 0

20 Feb 2006, 07:29
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# Last year the average (arithmetic mean) salary of 10

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