GMAT Prep 1

Question

Can you please show your approach to this problem

:

asterixmatrix · Answer

Answer C i.e. atleast one sold for less than @130000. Since its given that avg is $150k and median is $130k then atleast one home has to be sold for less than $130k. other option may or may not be true.

hogann · Answer

I would go for C

Median (middle) is 130,000. You know 7 house prices are below this amount and 7 house prices are above this amount. Since the average is $150,000 you also know the distribution is skewed and that 1 house was sold above $150,000

Aside from that there is not many other inferences we can make. 
Only III holds this

kt00381n · Answer

no,

it can be (8)130,000 + 7(172,857)=2,250,000

in this case you dont have any houses that are sold below $130,000

asterixmatrix · Answer

agreed but we dont have None of these as an option :shock:

what is the OA to this?

kt00381n · Answer

OA is A.

I picked it, only by removing the other two. Since, as you can see from my post above the other two choices are incorrect.

However, i still dont understand how can i prove A right....(sorry dont know if i make sense, but basically i want to know diff. cals to this prob :-D

)

)

hogann · Answer

I could have sworn I read at least 130,000. Maybe I was just forcing an answer.

It turns out that A is the correct answer.

As kt noted the maximum possible amount for the lower end is 8 x 130,000 (1,040k). To say that no house price is over 165 we would have 7 x 165,000 = 1,155k

This sums to only 2,195 which only gives $146,333 as an average. Therefore at least 1 house must be over $150,000

asterixmatrix · Answer

eeeekkk....sorry...miscalculated not once but twice!!!

A is right :oops:

Asterix What forces the brain not to work at times? :oops:

kt00381n · Answer

Can you prove that A is wrong? :roll:

kt00381n · Answer

I think it is more clear to me now.....thanks !

asterixmatrix · Answer

my bad....got duped by the snapshot thinking A to be incorrect and hence trying to convince myself that one in the other 2 are correct....wat helped further were 2 miscalculations :oops:

Asterix 2+2=4 2*2 = 4 2-2 =0 2/2=1

Jgroeten · Answer

I don't get it... if the median is 130.000, it means normally that 7 houses have a price lower 50% of the observation (n-1)

What you say is right for the average, but it breaks the median condition right?

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