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Statement 1. Smallest integer is 1, and mean = 4. So mean =4, and there is an integer '1' which is lesser than the mean.
Thus there must be at least one more integer which is greater than 4 (so as to balance out the required mean of 4).
So there must be at least one integer >4, thus Range must be > (4-1) or Range must be > 3. Sufficient.

Statement 2. Median is 4, so its possible that the middle term (4th term) is 4, and all further terms are also = 4. In this case, Range = 4-1 = 3.
But its also possible that middle term is 4, and further terms are > 4. In this case Range > 3.
So Insufficient.

Hence A answer
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gmat2015p
The smallest of 7 positive integers is 1. Is the range of them greater than 3?

(1) The average (the arithmetic mean) of them is 4.
(2) The median of them is 4.

EXTREME CASES ( arrange in increasing order)
1 a b c d e X
plug in abcde =1 each ( for beginning) => X>4
plug in abcde = 4 each => still X = 7

X-1 = 6 , 6>3(range) => sufficient A/D

Median =4
c=4
1 a b 4 d e X
consider 2 possibilities X=4 and X=7 => Range = 3 and 6 in this case => D rejected

A is answer


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