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Avg = 0.3(41) + 0.1(20) + 0.4(20) / 81
Avg = 12 + .3 + 2 + 8 / 81
Avg ≈ 22 / 80 ≈ 11/40 ≈ 5.5/20 ≈ 27.5/100
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Great question that captures the (ugly) spirit of the GMAT.
This is just a weighted average question with a twist: approximations.

First, recognize that X:Y:Z = 41:20:20...for simplicity just use 4:2:2. Then...

WA = 30(4) + 10(2) + 40(2) / 8
8WA = 220
WA = 220/8 = 27.5

Second, recognize that none of the answer choices are 27.5. Well that's because we rounded down from 41 to 40 (or 4). So adjust the resulting average upwards. Only E fits the bill.
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Shortcut: 1m30 solution

Thinks of this as of actually mixing liquids like in real life. The order in which we pour the liquids into the common container doesn't matter, they will get mixed together evenly in the end in any case.

1) Notice that solutions Y and Z have exactly the same volume. This means that if we mix these two solutions together the alcohol content will be exactly midway which is very fast to compute.
We will get 25% solution and the total volume will be 40 gallons.

2) Now notice that 40 gallons that we got is very close to 41 gallons of solution X. We can ignore the 1 gallon for now and perform the same calculation: the alcohol content will be very close to 27.5%
At this point we can take a look at the answers (and eliminate A through C).

Will the final concentration be slightly stronger or slightly lighter than 27.5?
Look which of the two solutions we have more of. We have 1 gallon more of the stronger solution, 30% vs 25%. Therefore the final concentration will be stronger than the midway as well.
Answer E: 27.53
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