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# The Observer is a newspaper company that has two divisions

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Manager
Joined: 01 Sep 2016
Posts: 207
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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Question Stats:

46% (01:34) correct 54% (01:31) wrong based on 207 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.

[Reveal] Spoiler: OA

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Manager
Joined: 01 Sep 2016
Posts: 207
GMAT 1: 690 Q49 V35
Re: The Observer is a newspaper company that has two divisions [#permalink]

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08 Jun 2017, 03:31
Can you please explain why e is correct. Thanks
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we shall fight on the beaches,
we shall fight on the landing grounds,
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Math Expert
Joined: 02 Aug 2009
Posts: 5660
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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Posts: 650
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
Joined: 26 Aug 2016
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Location: India
Concentration: Marketing, Strategy
GMAT 1: 690 Q50 V33
GMAT 2: 700 Q50 V33
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WE: Consulting (Consulting)
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: 19
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.
Re: The Observer is a newspaper company that has two divisions   [#permalink] 20 Sep 2017, 00:19
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# The Observer is a newspaper company that has two divisions

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