Ted and Barney work for the same company but earn different incomes an

Question

Ted and Barney work for the same company but earn different incomes and have different expenditures. Who saves a greater portion of their income?

(1) The sum of Ted’s income and Barney’s expenditure is greater than the sum of Barney’s income and Ted’s expenditure.
(2) Ted’s income is 20% lesser than Barney’s income.

nkin · Answer

Let T be Ted, B be Barney, I be Income and E be Expenditure, S be Savings. So, S = I - E, Also, TI = Ted's Income, BI = Barney's Income, TE = Ted's Expenditure, BE = Barney's Expenditure.

(1) Given: TI + BE > BI + TE, rearranging we get:

TI - TE > BI - BE
Here: TI - TE is Ted's savings, BI - BE = Barney's savings

Hence, Ted's Savings > Barney's Savings. Hence Sufficient.

(2) TI = 0.8BI
No Information on Expenditures, hence Insufficient.

Hence Option A

prasangrai · Answer

C.
let teds income = TI
Teds expenditure =TE
similarly for barney = BI &BE

now it is given
TI+BE > TE+BI.
this can be true if teds income and expenditure is proportionally higher than barneys incomr and expenditure.
Or just his income is more or barneys expenditure is more.
So we cannot be sure with just this statement.

Acc to stat 2
Teds income is 20%lesser than barneys,so to compensate this his expenditure should be greater.
So both stat together are sufcient

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nkin · Answer

gmatbusters , Can you please help me with this one? Is the logic I mentioned incorrect for statement (1) ?

GMATBusters · Answer

Hi  nkin

Question is 
 Who saves a greater portion of their income?

Question doesn't ask for absolute value of saving but greater proportion ( ratio) of savings.

We need to compare (Ted saving/Ted income) and (Barney saving/Barney ncome)

So we do need the ratio of income, hope it is clear now.

In case of any doubt, Do not hesitate to tag me again.

siddyj94 · Answer

PFA my solution for the same,

Posted from my mobile device

ruchik · Answer

Can you please post the official answer explanation here.  gmatbusters

GMATBusters · Answer

Official Explanation:

Let T be Ted, B be Barney, I be Income and E be Expenditure, S be Savings. So, S = I - E, Also, TI = Ted's Income, BI = Barney's Income, TE = Ted's Expenditure, BE = Barney's Expenditure.

(1) Given: TI + BE > BI + TE, rearranging we get:

TI - TE > BI - BE
Here: TI - TE is Ted's savings, BI - BE = Barney's savings

Hence, Ted's Savings > Barney's Savings.

But Question is whether " Who saves a greater portion of their income? "

Hence we need to compare Ted's Savings/Ted's Income and Barney's Savings/Barney's Income
  NOT Sufficient.

(2) TI = 0.8BI
No Information on Expenditures, hence  NOT Sufficient.

Combining Statement 1 & 2, we get
Ted's Savings/Ted's Income > Barney's Savings/Barney's Income
Hence, Ted saves a greater portion of their income?

SUFFICIENT

Hence  Option C

ISHAAN96 · Answer

this gives u the amount and not the proportion of thier savings 
lets say ted earns 1000 and spends 500 thus saves 50% 
barney earns 10 and spends 3 thus saves 70% 
in this case although barney saves higher proportion acc to your working it'll show that ted has higher savings which is true but not higher proportion

Ted and Barney work for the same company but earn different incomes an

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