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aaron.polsgrove
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Post subject: GMAT Prep Quant Section, Question #13 of 37  Posted: Sat Aug 08, 2009 11:20 am |
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Posts: 4
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On July 1 of last year, the total number of employees at Company E was decreased by 10 percent. Without any change in the salaries of the remaining employees, the average (arithmetic mean) empoloyee salary was 10 percent more after the decrease in number of employews than before the decrease. The total of the combine salaries of all the employees at Company E after July 1 last year was what percent of that before July 1 last year?
Possible answers
a. 90%
b. 99%
c. 100%
d. 101%
e. 110%
OA is b. But I am at a loss on how to arrive at this answer mathematically. Can you please help?
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tomslawsky
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Post subject: Re: GMAT Prep Quant Section, Question #13 of 37 Posted: Sun Aug 09, 2009 9:33 pm |
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Assume 100 Employees initially
Assume cumulative salary = "S" initially
100(S) = (90) (1.1)
Solve for S
Last edited by tomslawsky on Mon Aug 10, 2009 8:53 am, edited 1 time in total.
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aaron.polsgrove
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Post subject: Re: GMAT Prep Quant Section, Question #13 of 37 Posted: Sun Aug 09, 2009 9:47 pm |
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How do I solve for S in this equation? And can you explain the math you used to come up with this equation? Thanks.
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tomslawsky
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Post subject: Re: GMAT Prep Quant Section, Question #13 of 37 Posted: Mon Aug 10, 2009 1:21 pm |
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Try numbers:
BEFORE:
100 Employees
$1 salary each
Total Salary = 100 (1) = 100
AFTER:
100 (0.9) = 90 Employees
Total Salary:
there are 90 Employees each earning ten percent more than their initial salary of $1 or each earning $1.10
Total salary = 90 (1.1)=$99
RATIO to PERCENT:(after/before)*100 =
(99/100) *100 = 99%
These are the "perfect" standardized test questions in my opinion. They can be learned, but most will fall for the "trap" answers. I don't know what the "trick" to these is, but I do think that when one of these shows up on a GMAT type test, plugging in numbers ususlly yields working numbers that are designed to be manipilated quickly, with relationships that "seem" to work. I hope I helped you but if not, I'm sure an instructor will chime in.
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aaron.polsgrove
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Post subject: Re: GMAT Prep Quant Section, Question #13 of 37 Posted: Mon Aug 10, 2009 10:44 pm |
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Thanks. I agree with your advice about working with real numbers to solve the problem. The original question states that without any change in the salaries of the remaining employees, the average (arithmetic mean) empoloyee salary was 10 percent more after the decrease in number of employews than before the decrease. So the 90 remaining employees are not earning 10% more.
Also, when I first read your response last night, I thought the equation read 100(S) = (90) (1.1) (S). Maybe because it was late. Thanks for trying to help, but I don't think we're there yet. Still trying to figure out the math behind the OA.
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tomslawsky
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Post subject: Re: GMAT Prep Quant Section, Question #13 of 37 Posted: Tue Aug 11, 2009 9:13 am |
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1) I was tired too and made a mistake on my original response, which I've since edited.
2) More importantly- to your point of the employees making the same amount- the question does not say that each employee makes the same salary, it just gives an AVERAGE salary. Therefore, you have no idea what each of the employees make. I think it is wrong to assume that every employee makes the same salary. In fact, if you do make the assumption that everyone is paid the same salary, then the answer to the question will ALWAYS be 100%, or in essence, no change.
Therefore, I look at this as the company chopped 10% of the employees on the lower end of the salary scale.
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aaron.polsgrove
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Post subject: Re: GMAT Prep Quant Section, Question #13 of 37 Posted: Tue Aug 11, 2009 10:49 pm |
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OK, I think I got it. The originial problem statement said there was no change to the salaries of the remaining 90%, but the average salary was 10% greater, so using your figure of an average salary of $1, the new average salary would be $1.10, multiplied by 90 employees equals $99, or 99% of the original total payroll before reduction in employees. Wow, don't know why it took me so long to figure that out. Thanks for sticking with me on this!
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tomslawsky
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Post subject: Re: GMAT Prep Quant Section, Question #13 of 37 Posted: Wed Aug 12, 2009 3:49 pm |
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no prob- I'm still a learnin' myself!
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