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 Post subject: GMAT StatisticsPosted: Wed Jan 26, 2011 5:29 pm

Joined: Sun May 30, 2010 3:15 am
Posts: 424
A salesman's income consists of a commission and a base salary of \$350 per week. Over the past 5 weeks, his weekly income totals have been \$406, \$413, \$420, \$436 and \$395. What must his average (arithmetic mean) commission be per week over the next two weeks so that his average weekly income is \$500 over the 7-week period?

A. \$150
B. \$245
C. \$365
D. \$715
E. \$730

(C) We need to do this problem step-by-step.

First, we add up the total income amounts for the past 5 weeks:
\$406 + \$413 + \$420 + \$436 + \$395 = \$2070.

To average \$500 over 7 weeks, the salesman would need to earn:
\$500 × 7 = \$3500.

Subtract \$2070 from \$3500 to determine how much he would need to earn, in total, over the next 2 weeks to average \$500 for the 7 weeks:
\$3500 – \$2070 = \$1430.

Since he will earn \$700 in base salary over the next two weeks, the commission he must earn in the next two weeks is:
\$1430 – \$700 = \$730.

This is an average of \$730/2 = \$365 per week for these two weeks.

The correct answer is choice (C).
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Question Statemtn does not clarify the amount for Salary. It misleads the reader to believe that Commission + Salary is \$350 instead of the just the base salary of \$350.

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 Post subject: Re: GMAT StatisticsPosted: Wed Jan 26, 2011 5:35 pm

Joined: Sun May 30, 2010 2:23 am
Posts: 498
Any base salary is a fixed value, while any commission depends on the job results. It's the essence of a commission.

Furthermore, the varying commission is clearly the reason for the total income to be \$406, \$413, \$420, \$436 and \$395 over the 5 weeks.

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