EgmatQuantExpert
In a department of 30 employees, the average salary of top 10 employees was twice the average salary of the remaining employees. If the average salary of top 10 employees is increased by 30% and the average salary of the remaining employees is increased by 10%, then what is the percentage increase in the average salary of all the employees?
A. 10%
B. 15%
C. 20%
D. 25%
E. 40%
To read all our articles:Must read articles to reach Q51Given that the total number of employees = 30.
Average of Top 10 employees = 2 * Average of the remaining employees
If the average of the remaining is a.
Average of Top 10 employees = 2a
Let’s calculate the sum for this case: Average = (sum/ number of elements)
Sum of top 10 employees = Average of top 10 * Number of elements
= 2a * 10
= 20a
Sum of the remaining 20 employees = Average of the remaining 20 employees * Number of elements
= a * 20
= 20a
Total sum of the 30 employees = 20a + 20a = 40a
Percentage increase of averages :
For the Top 10 employees = 1.3 * (2a) = 2.6a
For the remaining 20 employees = 1.1 * a = 1.1a
Sum of the top 10 employees = (2.6a *10) = 26a
Sum of the remaining 20 employees = 20* (1.1a) = 22a
Total new sum = 26a + 22a = 48a
Since, average = sum / n , where n remains the same in both cases. We find the sum percent increase
% increase = (48a - 40a) / (40a)
= 8a/40a
= (1/5)*100
=
20% Option C