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21 Aug 2007, 20:50
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55% (hard)

Question Stats:

54% (01:25) correct 46% (01:20) wrong based on 199 sessions

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What percentage of steel workers in the country earns over $37000 annually and has a net worth over$200,000?

(1) 55% of steel workers in the country have an annual income over $37000 (2) 12% of steel workers in the country with an annual income over$37000 also have net worth above $200,000 Most Helpful Expert Reply Math Expert Joined: 02 Sep 2009 Posts: 56337 Re: what percentage of steel workers in the country earns over [#permalink] Show Tags 14 Jun 2014, 01:57 2 3 aashu4uiit wrote: I am replying to old post but I also got confused in this question : Is it " with " which makes the difference 2)12% of steel workers in the country with an annual income over$37000 also have net worth above $200,000 The question is asking : earns over$37000 annually and has a net worth over $200,000? B says : with an annual income over$37000 also have net worth above $200,000 So isn't B correct ? What percentage of steel workers in the country earns over$37000 annually and has a net worth over $200,000? (1) 55% of steel workers in the country have an annual income over$37000. We don't know what percentage of those 55% has a net worth over $200,000. Not sufficient. (2) 12% of steel workers in the country with an annual income over$37000 also have net worth above $200,000. 12% of those who have an annual income over$37000 also have net worth above $200,000. We don't know what percentage have an annual income over$37000. Not sufficient.

(1)+(2) 55% have an annual income over $37000 and 12% of those 55%, so 6.6%, earns over$37000 annually and has a net worth over $200,000. Sufficient. Answer: C. Hope it's clear. _________________ Veritas Prep GMAT Instructor Joined: 01 Jul 2017 Posts: 73 Location: United States Concentration: Leadership, Organizational Behavior What percentage of steel workers in the country earns over$  [#permalink]

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20 Dec 2017, 21:42
One great way to look at this problem is to visualize it as a Venn Diagram. We have two overlapping groups: those steel workers who make over $37,000 annually (I will call them group “$$A$$”), and those who have a net worth above$200,000 (I will call them group “$$B$$”). There is an overlap between the groups, containing people who meet both criteria. I will call them group “$$M$$”. There is technically also a “neither” group (“$$N$$”): steel workers who do not meet either of the criteria. The total number of steel workers $$(T) = A + B + N – M$$. (Remember, when you add overlapping groups, you double count the mixed group, $$M$$.)

The target for this problem is the percentage of steel workers who meet both criteria. (Notice the critical leverage word “also.”) This percentage is calculated by knowing the mixed group, $$M$$, and dividing it by $$T$$. Thus, we need to find a numerical value for $$\frac{M}{T}$$.

Statement #1 tells us that 55% of all the steel workers in the country ($$T$$) fit into group $$A$$. Mathematically, this means that $$A = (.55)T$$. However, we cannot manipulate this equation to solve for $$\frac{M}{T}$$, since it gives us no information on the mixed group, $$M$$. Statement #1 is insufficient.

Statement #2 tells us that 12% of the steel workers with an annual income over $37,000 also have a net worth above$200,000. (Once again, notice the critical leverage word “also.”) Mathematically, this means that $$(.12)A=M$$. Again, this equation alone does not allow us to calculate $$\frac{M}{T}$$, since it gives us no information on the total group, $$T$$. Statement #2 is insufficient by itself.

However, when we substitute the first equation into the second equation, we get the equation $$(.12)*(.55)*T = M$$. There is no reason to do any more math, because it is easy to see that we can solve this combined equation for the term $$\frac{M}{T}$$. The two statements together are sufficient, and the answer is C.

It might be worth noting here that we never actually able to solve for the individual values for $$M$$ and $$T$$. We don’t have to. We can solve for a chunk of an equation without needing to know the individual components. This is a concept I call “Chunky-quations” in my classes. The GMAT often gets you to assume that you need to know each piece, instead of just looking for a combined value. This is a classic GMAT trap.
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Joined: 31 Mar 2007
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22 Aug 2007, 01:31
ughm

it asks you for % of workers >37k & networth >200k

B gives you that.

of steel workers, 12% who have income >37k also have networth over 200k

oh OOPS

you need both, you dont know what % the people who earn >37k are of the population

hence C)

gay
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Joined: 02 May 2012
Posts: 66
Re: what percentage of steel workers in the country earns over  [#permalink]

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13 Jun 2014, 18:33
1
I am replying to old post but I also got confused in this question :

Is it " with " which makes the difference

2)12% of steel workers in the country with an annual income over $37000 also have net worth above$200,000

The question is asking : earns over $37000 annually and has a net worth over$200,000?

B says : with an annual income over $37000 also have net worth above$200,000

So isn't B correct ?
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Re: What percentage of steel workers in the country earns over $[#permalink] Show Tags 14 Jun 2014, 08:31 1 Great Thanks Now I got the logic _________________ If you like my post Kudos Please __________________________________________________ Support ====> http://udaanshimla.ketto.org/campaign/campaign_details.php?fmd_id=757 Intern Joined: 17 Oct 2013 Posts: 38 Location: India Concentration: Strategy, Statistics Schools: ISB '17 (A) GMAT 1: 730 Q49 V40 WE: Analyst (Computer Software) Re: what percentage of steel workers in the country earns over [#permalink] Show Tags 15 Jun 2014, 08:20 Bunuel wrote: aashu4uiit wrote: I am replying to old post but I also got confused in this question : Is it " with " which makes the difference 2)12% of steel workers in the country with an annual income over$37000 also have net worth above $200,000 The question is asking : earns over$37000 annually and has a net worth over $200,000? B says : with an annual income over$37000 also have net worth above $200,000 So isn't B correct ? What percentage of steel workers in the country earns over$37000 annually and has a net worth over $200,000? (1) 55% of steel workers in the country have an annual income over$37000. We don't know what percentage of those 55% has a net worth over $200,000. Not sufficient. (2) 12% of steel workers in the country with an annual income over$37000 also have net worth above $200,000. 12% of those who have an annual income over$37000 also have net worth above $200,000. We don't know what percentage have an annual income over$37000. Not sufficient.

(1)+(2) 55% have an annual income over $37000 and 12% of those 55%, so 6.6%, earns over$37000 annually and has a net worth over $200,000. Sufficient. Answer: C. Hope it's clear. Curious wording, Bunnel! The rest of the 45% workers with annual income under 37K could still have a net worth of over 200K I mean there never was an established connection between Annual income and Net worth I maybe thinking too much, but it's a tempting perspective under test pressure Intern Joined: 28 Sep 2014 Posts: 16 D: M GMAT 1: 700 Q49 V35 WE: Information Technology (Consulting) Re: What percentage of steel workers in the country earns over$  [#permalink]

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30 Oct 2014, 20:37
Curious wording, Bunnel!
The rest of the 45% workers with annual income under 37K could still have a net worth of over 200K
I mean there never was an established connection between Annual income and Net worth
I maybe thinking too much, but it's a tempting perspective under test pressure

Why would we consider the remaining 45 % ? we are to find those who earn 37000 and has networth above 200k
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Joined: 02 Sep 2009
Posts: 56337
Re: What percentage of steel workers in the country earns over $[#permalink] Show Tags 31 Oct 2014, 05:22 Kconfused wrote: Bunuel wrote: aashu4uiit wrote: I am replying to old post but I also got confused in this question : Is it " with " which makes the difference 2)12% of steel workers in the country with an annual income over$37000 also have net worth above $200,000 The question is asking : earns over$37000 annually and has a net worth over $200,000? B says : with an annual income over$37000 also have net worth above $200,000 So isn't B correct ? What percentage of steel workers in the country earns over$37000 annually and has a net worth over $200,000? (1) 55% of steel workers in the country have an annual income over$37000. We don't know what percentage of those 55% has a net worth over $200,000. Not sufficient. (2) 12% of steel workers in the country with an annual income over$37000 also have net worth above $200,000. 12% of those who have an annual income over$37000 also have net worth above $200,000. We don't know what percentage have an annual income over$37000. Not sufficient.

(1)+(2) 55% have an annual income over $37000 and 12% of those 55%, so 6.6%, earns over$37000 annually and has a net worth over $200,000. Sufficient. Answer: C. Hope it's clear. Curious wording, Bunnel! The rest of the 45% workers with annual income under 37K could still have a net worth of over 200K I mean there never was an established connection between Annual income and Net worth I maybe thinking too much, but it's a tempting perspective under test pressure The question asks about the percentage of workers who earns over$37000 annually AND, at the same time, has a net worth over $200,000. We know that 55% earn over 37K, and that 12% of them have a net worth over 200K. Therefore 0.55*0.12 = 6.6% both earn over 37K AND have a net worth over 200K. Hope it's clear. _________________ Re: What percentage of steel workers in the country earns over$   [#permalink] 31 Oct 2014, 05:22
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