meganbailey wrote:

Why would it not be C? I was thinking:

(1) and (2): If b=80,000, a=8,000

Hi

88000 is the combined average. Its not the sum of salaries. So if average salary of one company is 80000, and the combined average of the two is 88000, then the average of second company has to be more than 88000 (because then only 88000 will lie in between the salary of two companies).

Basically, if average salary of one company is A and that of other company is B, then the combined average has to lie somewhere in between A and B, no matter how skewed the number of employees in two companies (if the number of employees in company with average A is much much greater than number of employees in company with average B, still the combined average will lie between A and B, though it will be much closer to A than B in this case).