GMAT Math Strategies Solving Not-so-simple Statistics Problems

This tutorial is one of two focusing on GMAT math strategies. In this Q&A, you'll gain
insight into descriptive statistics problems specifically, those involving the concepts of
arithmetic mean (simple average), median and range. You'll discover that these seemingly
simple concepts can make for surprisingly difficult GMAT questions, unless you're truly
prepared for them.

Q: Can you briefly define the term descriptive statistics, and describe what aspects of
descriptive statistics GMAT test takers are likely to encounter?
A: The term descriptive statistics embraces such concepts as arithmetic
mean (simple average), median, range, and standard deviation. All but
the last of these concepts are easily understood. Just for the record,
here's a definition of each one:
For any set of numerical terms:
The arithmetic mean is the sum of the terms, divided by the
number of terms in the set.
The median is the middle term in value if the set contains an odd
number of terms, or the arithmetic mean (average) of the two
middle terms if the set contains an even number of terms.
The range is the difference on the real-number line between the
term with the greatest value and the term with the least value.
You should understand each of these terms, because the test makers
won't provide you with their definitions during the test. By the way, the
same goes for standard deviation a more advanced statistical concept
that inherently makes for a relatively challenging GMAT question.

Q: The three concepts you just defined seem very straightforward. How can the test
makers design challenging questions or even moderately difficult ones involving
these concepts?
A: To increase the difficulty of questions that focus on these concepts,
the test designers often use variables, which add an algebraic dimension
to these questions. Consider, for instance, the following Problem-Solving
question (answer choices are omitted here):
Which of the following expressions represents the arithmetic mean
(average) of the five terms p, q, p + q, p 1, and q + 1 ?
Solving the problem requires not only application of the arithmetic-mean
concept, but also a bit of algebraic manipulation, rendering the question
a bit more complex than simply adding together five numbers and
dividing by five. Here are the algebraic steps, plugging the variable
expressions into a general equation for arithmetic mean (AM):

Still not to difficult, is it? So to further increase the difficulty level of an
arithmetic-mean question, the test makers might provide the arithmetic
mean and ask instead for the value of an unknown term in the set.
Consider this variation on the problem just solved (again, omitting
answer choices):
Which of following expressions represents the fifth term of a set
that also includes the terms p, q, p + q, and p 1,
if represents the arithmetic mean (average) of the five
terms?
This one's a bit more challenging, isn't it? It's more difficult to
understand and to determine how to approach and solve. Moreover,
although you apply the same arithmetic-mean formula to solve this
problem as for the previous one, you need to perform more algebraic
steps along the way:


Q: What about the concepts of median and range? How might the test makers design
a challenging GMAT question involving either of these simple concepts?
A: Again, the use of variables, instead of or in addition to numbers,
adds complexity to the question. Also, the concepts of median and
range are typically incorporated into an arithmetic-mean problem.
Here's a Problem-Solving question that employs both devices (once
again, answer choices are omitted here):
If 0 < q < p, and if the median of the four terms p, q, p + q,
and q p is 2, what is the arithmetic mean (average) of the four
terms?
Your first task here is to rank the four terms from least to greatest in
value. Given q < p and that p and q are both positive, q p must be
negative and hence lowest in value among the four terms,
while q + p must be greatest in value among the four terms. Here are
the four terms, then, ranked from least to greatest in value:
(q p) ... q ... p ... (p + q)
The median value, given as 2, is the average (arithmetic mean) of the
two middle terms q and p:

To answer the question, you can substitute the value 4 for (p + q) in the
arithmetic-mean formula:

Had the question asked instead for the range of values in the set, once
you've determined the lowest and highest valued terms, you could
express the range as the sum of the greatest term's value, which you
know is positive, and the absolute value of the lowest value, which you
know is negative:
Range = (p + q) + |q p|
.........= 4 + |q p|
.........= 4 + (p q)
.........= p q + 4

Q: So far you've used examples only in the Problem-Solving format. How do the test
makers employ the Data-Sufficiency format to cover the concepts of arithmetic mean,
median, and range?
A: First consider the general equation for arithmetic mean (average),
which contains three distinct components:
1. The arithmetic mean
2. The number of terms in the set
3. The sum of the terms in the set
If you're given any two of these, you can determine the third. Thus the
correct response to the following Data-Sufficiency question would be
(C):
How many sweaters does Hritik own?
(1) Hritik paid an average of $25 for each sweater he owns.
(2) Hritik paid a total of $240 for all of the sweaters he owns.
This is a very simple example, of course. Just as with Problem-Solving
questions, to enhance the difficulty of an arithmetic-mean question in
the Data-Sufficiency format the test makers will often incorporate either
the median or range concept into the question.

Q: Can you illustrate how an arithmetic-mean question in the Data-Sufficiency
format can be made more difficult by incorporating the concept of either median or
range?
A: Sure. Here's a Data-Sufficiency question that incorporates certain
information about range. You'll probably agree that this example, which
also involves Hritik's sweaters, is far more difficult than the previous
one:
If Hritik paid an average of $25 per sweater for four sweaters, one
of which was more expensive than any of the others, how much did
he pay for the most expensive sweater?
(1) The amount Hritik paid for the most expensive sweater was $25
more than the lowest amount he paid for a sweater.
(2) Hritik paid an average of $20 per sweater for three of the
sweaters.
First consider statement (1) alone, which provides the range of values in
the set. Without more information about the price of individual sweaters
it is not possible to answer the question. Next consider statement (2)
alone, which establishes that Hritik paid a total of $60 for three of the
four sweaters. Given an average price of $25 for each of the four
sweaters, the total for all four sweaters was $100. Thus the fourth
sweater must have cost $40. But is that $40 sweater necessarily the
most expensive one? No. For example, the three sweaters whose total
cost was $60 might have cost $45, $10, and $5 individually. Thus
statement (2) alone does not suffice to answer the question.
Considered together, however, statements (1) and (2) establish that the
most expensive sweater must have cost $40. Why? Assume the
contrary: that the $40 sweater was not the most expensive one. Given
this assumption along with statement (1), the least expensive sweater
must have cost more than $15. But the total cost of all four sweaters
would total more than $100:
($40) + ($40+) + ($15) + ($15+) > $100
Since the contrary assumption is impossible, the most expensive
sweater must have cost $40, and correct response to this question is
(C).

Q: What other devices might the test makers use to enhance the difficulty of Data-
Sufficiency questions involving arithmetic mean, median, and range?
A: To answer this question, let's revisit the set of variable expressions
from the first arithmetic-mean example:
S: {p, q, p + q, p 1, and q + 1}
Determining the median value of these five terms requires additional
information. The median value would depend on:
The signs of p and q whether p and q are positive or negative
Which value p or q is greater, and by how much
For example, assuming p > q, whether (p + q) is greater or less
than p and qdepends on the sign of q. If q is positive, then (p + q)
> p > q. But if q is negative, then p > (p + q) > q. Even if you
assume p and q are both positive, the median value might be either (p
1) or q, depending on the difference between p and q. If the difference
is less than 1, then the median is p, whereas if the difference is greater
than 1, then the median is (p 1):
If p q < 1, then (p + q) > (q + 1) > p > q > p 1.
If p q > 1, then (p + q) > p > (p 1) > (q + 1) > q.
These sorts of dynamics between variable expressions is great fodder
for Data-Sufficiency questions, because whether you can determine the
relationships between the expressions depends on how much and what
type of information you're provided about them. For example, here's the
scenario we just looked at, transformed into a Data-Sufficiency
question:
Among the terms p, q, p + q, p 1, and q + 1, which represents
the median value?
(1) p > q
(2) p q < 1
The correct answer is (E). Even considering both statements (1) and (2)
together, the median value depends on the signs of p and q.

Q: In your last example, whether the question was answerable depended on the sign
and relative values of the variable expressions. Is this typical of GMAT Data-
Sufficiency questions? If so, is there a systematic process for ensuring that your
analysis accounts for all possible values of the variable expressions?
A: Yes, it's very typical. In fact, identifying possible value ranges for
variables is at the heart of many Data-Sufficiency questions. Whenever
you encounter a Data-Sufficiency question involving variable
expressions as opposed to numbers check to see whether the
question itself asks:
Which of two variable expressions is greater in value
Whether two variable expressions are equal in value
Whether the value of a variable expression is positive or negative
The question might look something like one of the following:
If..., is x > y ?
If..., does x = y ?
If..., is x > 0 ?
Your immediate reaction to this sort of question should be to consider
the following value ranges along the real-number line:
Values greater than 1
Fractional values between 0 and 1
Fractional values between 1 and 0
Values less than 1
Why these four ranges? Well, when you perform certain operations with
variables, the result depends on what range the variable falls into. For
instance, when you square a number or take its cube root, whether you
end up with a positive number, negative number, a smaller number, or
a larger number, depends on which of the five ranges the original
number falls into:
If x > 1, then 1 < < x
If 0 < x < 1, then x < < 1
If 1 < x < 0, then 1 < < x
If x < 1, then x < < 1
As you prepare for GMAT Data Sufficiency, go through the exercise of
applying exponents (odd as well as even) and roots (odd as well as
even) to numbers, and note the patterns that result.




Question 1
If the average cost of producing one widget decreases from $12.50 to $10.75, what is the percent
of the decrease?

(A) 10
(B) 12.5
(C) 14
(D) 15
(E) 16


Answer and Analysis

The correct response is (C). The amount of the decrease is $1.75. The percent of the decrease is
$1.75 $12.50 (average price before the decrease). The key to quickly determining the quotient is
to recognize that $12.50 is exactly one-eighth of 100. Thus, you can simply multiply $1.75 by 8 to
determine the solution: ($1.75)(8) = 14.
Question 2
What is the average (arithmetic mean) of x and y?
(1) The average (arithmetic mean) of (x + 1) and (y 1) is equal to the
average (arithmetic mean) of x and y.
(2) The average (arithmetic mean) of x, y, and 1 is 1.
(A)

Statement (1) ALONE is sufficient to answer the question, but statement (2) alone
is NOT sufficient.
(B)

Statement (2) ALONE is sufficient to answer the question, but statement (1) alone
is NOT sufficient.
(C)

BOTH statements (1) and (2) TOGETHER are sufficient to answer the question,
but NEITHER statement ALONE is sufficient.
(D)

Each statement ALONE is sufficient to answer the question.
(E)

Statements (1) and (2) TOGETHER are NOT sufficient to answer the question.
Answer and Analysis
The correct response is (B). Statement (1) is true of any two numbersx and y, because (x + 1)
+ (y 1) = x + y. Thus, Statement (1) alone is insufficient to answer the question.
Statement (2) alone suffices to answer the question. Since the average of the three terms x, y,
and 1 is 1, the average of x and y is 2:

Question 3
If p q = p(q p), then which of the following specific operations yields 2p 4 ?
(A) 2p 2
(B) p 2
(C) 2p p
(D) 2 2p
(E) 2 p
Answer and Analysis
The correct response is (E). This problem involves a defined operationand is essentially an
exercise in algebraic substitution. For each answer choice, "plug" the given values into the
expression p(q p).
You can easily eliminate the first three listed operations because each one yields a quadratic
expression containing a p
2
term. The fifth listed operation is the one that yields 2p 4:
p(q p) = 2(p 2) = 2p 4
As you can see, the correct answer is choice (E).
Question 4
Are the majority of salespeople employed by XYZ Company commissioned?
(1) The number of salespeople employed by XYZ Company exceeds the
number of employees at XYZ Company who are not salespeople.
(2) The percentage of XYZ Company's salespeople who are
commissioned exceeds the percentage of employees at XYZCompany
who are salespeople.
(A)

Statement (1) ALONE is sufficient to answer the question, but statement (2) alone
is NOT sufficient.
(B)

Statement (2) ALONE is sufficient to answer the question, but statement (1) alone
is NOT sufficient.
(C)

BOTH statements (1) and (2) TOGETHER are sufficient to answer the question,
but NEITHER statement ALONE is sufficient.
(D)

Each statement ALONE is sufficient to answer the question.
(E)

Statements (1) and (2) TOGETHER are NOT sufficient to answer the question.
Answer and Analysis
The correct response is (C). In order to answer the question, you need information about the
number of commissioned salespeoplerelative to the number of non-commissioned salespeople.
Statement (1) alone provides no such information. Statement (2) alone provides a meaningless
comparison between percentages of two different "wholes"; the statement provides no
information about the number of commissioned salespeople relative to the number of non-
commissioned salespeople (the "whole" being the total number of salespeople). Thus, statement
(2) alone is insufficient to answer the question.
Considered together, however, statements (1) and (2) do suffice to answer the question.
Statement (1) provides that more than 50% of the employees are salespeople. Statement (2)
adds that this percentage is less than the percentage of salespeople who are commissioned.
Thus, the percentage of salespeople who are commissioned must exceed 50% (and the answer
to the question itself must be yes).
What is the greatest value of a positive integer n such that 3
n
is a factor of 18
15
?
(A) 15
(B) 18
(C) 30
(D) 33
(E) 45
Answer and Analysis
The correct response is (C). You can express the base number 18 as the product of its prime
factors:
18
15
= 3
15
3
15
2
15
= 3
30
2
15

3
30
is clearly greater in value than 2
15
. Thus, the greatest possible value of n is 30.