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# The Observer is a newspaper company that has two divisions

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Manager
Joined: 01 Sep 2016
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GMAT 1: 690 Q49 V35
The Observer is a newspaper company that has two divisions  [#permalink]

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08 Jun 2017, 03:30
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Difficulty:

95% (hard)

Question Stats:

51% (02:13) correct 49% (01:57) wrong based on 334 sessions

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The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.

Which of the following can properly be inferred about the past five years from the statements above?

a) The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.
b) The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large
c) The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.
d) The average wage paid to the workforce is greater at The West Observer than at The East Observer.
e) The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.

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Joined: 02 Aug 2009
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Re: The Observer is a newspaper company that has two divisions  [#permalink]

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08 Jun 2017, 04:36
bkpolymers1617 wrote:
The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.

Which of the following can properly be inferred about the past five years from the statements above?

a) The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.
b) The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large
c) The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.
d) The average wage paid to the workforce is greater at The West Observer than at The East Observer.
e) The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.

Hi,

Don't get confused with the payment given ..

A,B and C are completely out of context.
D talks of average but talks opposite of the fact.

E talks only of numbers..
Let it be 100 employees in observer.
East has 40 and West has 60...
What is the % of East when compared to West..
$$100*\frac{40}{60}=66.67%$$

So the # is 33.33% less thus E is correct
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Re: The Observer is a newspaper company that has two divisions  [#permalink]

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08 Jun 2017, 21:10
bkpolymers1617 wrote:
The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.

Which of the following can properly be inferred about the past five years from the statements above?

a) The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.
b) The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large
c) The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.
d) The average wage paid to the workforce is greater at The West Observer than at The East Observer.
e) The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.

let 100 total
60 - W
40 -E
Diff = 20
x% of 60 = 20
20*100/60= 200/6 = 100/3 = 33.33% .....so east have 33.33% less employee...
Director
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Re: The Observer is a newspaper company that has two divisions  [#permalink]

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17 Jun 2017, 20:28
The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.

Which of the following can properly be inferred about the past five years from the statements above?

a) The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer. - out of scope
b) The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large - Out of scope
c) The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer. - Out of scope
d) The average wage paid to the workforce is greater at The West Observer than at The East Observer. - Opposite

e) The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.

40% - Est Obs. 60% - Wst Obs - 40/60 = 66.666 % i.e. it is 33% less than the later. .
Intern
Joined: 10 Aug 2017
Posts: 17
GMAT 1: 720 Q48 V41
Re: The Observer is a newspaper company that has two divisions  [#permalink]

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20 Sep 2017, 00:19
Wow I didn't even bother to run the basic numbers for E, and went with A after debating between A and E.

I thought A sounded a bit fishy to be 'inferable', but thought it could explain the wage gap between East and West observer. (West per capita pay is lower than that of East). Turns out it's out of scope.
Manager
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Posts: 81
Location: India
Schools: LBS '21
GMAT 1: 620 Q46 V33
Re: The Observer is a newspaper company that has two divisions  [#permalink]

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03 Jul 2018, 04:26
I know this answer seems really confusing :

Here is what i could deduce :

e) The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.

EO < W0-25% X WO

E0-40
WO-60
40< 60- 25% X 60
40<45

This is the complicated way !

In simple worlds what percent is 40 0f 60?

40/60x 100 =66% which means 40 people out of 60 only constitute to 66% remaining 33% is continued by the remaining 20 people .

so the 60 people group is atleast 33% greater than the 40 people group .
Re: The Observer is a newspaper company that has two divisions &nbs [#permalink] 03 Jul 2018, 04:26
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# The Observer is a newspaper company that has two divisions

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