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The graph shows, for 7 groups—Groups A through G—the relationship between the median and the arithmetic mean of annual salaries...

GMAT Graphics Interpretation : (GI) Questions

Source: Official Guide
Graphics Interpretation
GI - Stats
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Graph showing relationship between median and arithmetic mean of annual salaries for Groups A through G

The graph shows, for 7 groups—Groups A through G—the relationship between the median and the arithmetic mean of annual salaries for members of that group. All 7 groups have the same number of employees and each group plans to hire a new worker at the group's median salary.


Based on the information provided, select from each drop-down menu the option that creates the most accurate statement.

For exactlyof the groups, the addition of the new worker will result in an increase in the arithmetic mean salary for the group. For Group, the increase (as a percentage of the previous arithmetic mean) will be the greatest.
Solution

Owning the Dataset

Table 1: Text Analysis

Text Component Literal Content Simple Interpretation
Subject annual salaries for members of that group Focus is on employee salary data
Groups 7 groups—Groups A through G There are seven employee groups labeled A to G
Metrics Shown relationship between the median and the arithmetic mean of annual salaries Shows how the midpoint (median) compares to the average (mean) salary
Equal Group Size All 7 groups have the same number of employees Each group is equally sized
Hiring Plan Each group plans to hire a new worker at the group's median salary Each group will add an employee earning exactly the current median salary

Table 2: Chart Analysis

Chart Component What's Displayed Interpretation
Y-Axis 'Median as % of Arithmetic Mean' (80 to 110%) % above 100 shows median exceeds mean, below 100 means median is less than mean
X-Axis Groups A, B, C, D, E, F, G Each group compared side-by-side
Data Group A: 101%, B: 94%, C: 106%, D: 91%, E: 96%, F: 98%, G: 109% Group G: highest (109%), Group D: lowest (91%); A, C, G above 100%, others below
Visual Pattern Bars for A, C, G above 100%; B, D, E, F below 100% Split between groups where typical salary is above/below average salary (skew direction hint)

Key Insights

  • Groups A, C, and G have median salaries higher than their mean salaries; hiring at the median will increase their mean salary.
  • Group G, with the largest gap \(109\%\), will see the greatest percentage rise in mean salary after hiring.
  • For Groups B, D, E, and F, where the median is below the mean, hiring at the median salary will decrease their mean salary.

Step-by-Step Solution

Question 1: Number of Groups with Mean Increase

Complete Statement:

For exactly _____ of the groups, the addition of the new worker will result in an increase in the arithmetic mean salary for the group.

Breaking Down the Statement
  • Statement Breakdown 1:
    • Key Phrase: addition of the new worker
    • Meaning: Each group hires a new employee.
    • Relation to Chart: The new worker is paid at the group's median salary.
    • Important Implications: The effect on mean depends on whether the median is greater or less than the mean.
  • Statement Breakdown 2:
    • Key Phrase: increase in the arithmetic mean salary
    • Meaning: The group's average salary rises after adding the new worker.
    • Relation to Chart: This increase happens if the median is above the mean \(\mathrm{median/mean} \gt 100\%\).
    • Important Implications: Count groups where median as a percentage of mean is over \(100\%\).
  • What is needed: The number of groups whose median salary is above their mean salary \(\mathrm{median/mean} \gt 100\%\).
Solution:
  • Condensed Solution Implementation:
    List each group's median-as-percent-of-mean, then count all above \(100\%\).
  • Necessary Data points:
    Group A: \(101\%\); Group B: \(94\%\); Group C: \(106\%\); Group D: \(91\%\); Group E: \(96\%\); Group F: \(98\%\); Group G: \(109\%\)
  • Calculations Estimations:
    Groups A \((101\%)\), C \((106\%)\), and G \((109\%)\) are all above \(100\%\). That totals 3 groups.
  • Comparison to Answer Choices:
    Of the choices provided (2, 3, 4, 5, 6, 7), '3' matches our count.
FINAL ANSWER Blank 1: 3

Question 2: Group with Greatest Percentage Increase

Complete Statement:

For Group _____, the increase (as a percentage of the previous arithmetic mean) will be the greatest.

Breaking Down the Statement
  • Statement Breakdown 1:
    • Key Phrase: the increase...will be the greatest
    • Meaning: Which group will see the largest increase in its average salary.
    • Relation to Chart: The group with the highest median/mean percentage will get the largest mean boost after hiring at median.
  • Statement Breakdown 2:
    • Key Phrase: as a percentage of the previous arithmetic mean
    • Meaning: How big the increase is, relative to the group's original mean.
    • Relation to Chart: A higher median versus mean percentage leads to a greater relative increase.
  • What is needed: The group (with median above mean) that has the highest median/mean percentage.
Solution:
  • Condensed Solution Implementation:
    From the three groups that increase the mean (A, C, G), select the one with the largest median/mean percentage.
  • Necessary Data points:
    A: \(101\%\); C: \(106\%\); G: \(109\%\)
  • Calculations Estimations:
    \(\mathrm{G}\,(109\%) \gt \mathrm{C}\,(106\%) \gt \mathrm{A}\,(101\%)\), so Group G sees the largest increase.
  • Comparison to Answer Choices:
    Provided choices include 'G', which matches our finding.
FINAL ANSWER Blank 2: G

Summary

Exactly 3 groups (A, C, and G) will see their mean salary increase after hiring a new worker at the median. Among these, Group G will have the greatest percentage increase, due to its median salary being furthest above its mean.

Question Independence Analysis

The questions are dependent: the second uses the set of groups identified as increasing in the first. Both rely on understanding the relationship between median and mean.

Answer Choices Explained
For exactly
1A
2
1B
3
1C
4
1D
5
1E
6
1F
7
of the groups, the addition of the new worker will result in an increase in the arithmetic mean salary for the group. For Group
2A
B
2B
C
2C
D
2D
E
2E
F
2F
G
, the increase (as a percentage of the previous arithmetic mean) will be the greatest.
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