It is currently 10 Dec 2018, 13:32
My Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

The salary scale for players in a certain sports league is d

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Intern
Intern
Joined: 09 Jun 2018
Posts: 2
Followers: 0

Kudos [?]: 2 [1] , given: 1

The salary scale for players in a certain sports league is d [#permalink] New post 14 Jul 2018, 10:16
1
This post received
KUDOS
00:00

Question Stats:

78% (01:20) correct 21% (01:54) wrong based on 14 sessions
The salary scale for players in a certain sports league is determined statistically by reference to a curve with a normal distribution. In 1960, the mean salary for players in the league was $10,000 with a standard deviation of $1000. That year,rookie players were paid $8,000. In 2010, the mean salary for players in the league was 1,175,000 with a standard deviation of $300,000. Rookies in 2010 were paid salaries in a dollar amount equal to a position on normal curve for 2010 that rookie players were paid in the year 1960. What was the salary for rookie players in 2010?



A- $1,475,000
B- $1,175,000
C- $875,000
D- $575,000
E- $275,000

OA: $575,000

Cambridge, Victory book.
[Reveal] Spoiler: OA

Last edited by Menna on 14 Jul 2018, 11:19, edited 2 times in total.
Moderator
Moderator
User avatar
Joined: 18 Apr 2015
Posts: 5126
Followers: 76

Kudos [?]: 1028 [0], given: 4631

CAT Tests
Re: Standard Deviation Question [#permalink] New post 14 Jul 2018, 11:16
Expert's post
Is this a numeric entry question or a problem solving with five answer choices ??

Please post the question properly, so we can help you @Menna.

Regards
_________________

Get the 2 FREE GREPrepclub Tests

1 KUDOS received
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jun 2014
Posts: 4749
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 93

Kudos [?]: 1652 [1] , given: 396

CAT Tests
Re: The salary scale for players in a certain sports league is d [#permalink] New post 15 Jul 2018, 02:35
1
This post received
KUDOS
Expert's post
The trick in this question is not to get intimidated by the terms mean and standard deviation.

Mean is the salary the guy at 50th percentile gets. So let us suppose we have 100 guys in the league and we make them stand in a row with increasing salary then the guy standing in the 50th position in the line get the mean salary.

So 50th guy in the line will get $10000 in 1960

So 50th guy in the line will get $1175000 in 2010.

Look at the curve below. One standard deviation means that the guys at 84.13 (50% +34.13%) earn more and and guys at 15.87% (50% - 34.13%) earn less by the amount of standard deviation.

Attachment:
bell curve.png
bell curve.png [ 7.13 KiB | Viewed 365 times ]


So in 1960 the guys earning $10000 were at 50% guys earning $9000 ($10000-$1000) were at the 15.87% and guys earning $8000 ($10000-2*$1000) were at 2.28%.



The question suggest the all the rookie players were in the last 2.28% of the population.

So apply the distribution to the new salaries we can say that rookies in 2010 were earning two standard deviations below the average.


So the rookie income in 2010 = mean income - 2 *standard devation= $1175000-$300000-$300000.=$575000
_________________

Sandy
If you found this post useful, please let me know by pressing the Kudos Button

Try our free Online GRE Test

2 KUDOS received
Director
Director
User avatar
Joined: 07 Jan 2018
Posts: 553
Followers: 4

Kudos [?]: 477 [2] , given: 84

CAT Tests
Re: The salary scale for players in a certain sports league is d [#permalink] New post 15 Jul 2018, 23:01
2
This post received
KUDOS
From the question,

The Mean of 1960 is \($10000\)
while S.D. is \($1000\)
The salary of rookie player in 1960 is 2 SD below the mean which is \(10000-2000 = 8000\)

Now coming to 2010 we are given that the Mean is 1,175,000
and 1 S.D. is $300,000
Hence if the payment was commensurate with the distribution of normal curve of 1960 we can conclude that rookie players received 2 S.D. below the mean
or, \($1175000- 2 * $300,000 = 1175000 - 600000 = $575000\)
_________________

This is my response to the question and may be incorrect. Feel free to rectify any mistakes

1 KUDOS received
Intern
Intern
Joined: 16 Jul 2018
Posts: 4
Followers: 0

Kudos [?]: 5 [1] , given: 0

Re: The salary scale for players in a certain sports league is d [#permalink] New post 16 Jul 2018, 11:45
1
This post received
KUDOS
It appears to be recording the correct answer (d) as incorrect. Please fix :shock:
Moderator
Moderator
User avatar
Joined: 18 Apr 2015
Posts: 5126
Followers: 76

Kudos [?]: 1028 [0], given: 4631

CAT Tests
Re: The salary scale for players in a certain sports league is d [#permalink] New post 16 Jul 2018, 12:57
Expert's post
Fixed as D.

Thank you.

Regards
_________________

Get the 2 FREE GREPrepclub Tests

Re: The salary scale for players in a certain sports league is d   [#permalink] 16 Jul 2018, 12:57
Display posts from previous: Sort by

The salary scale for players in a certain sports league is d

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GRE Prep Club Forum Home| About| Terms and Conditions and Privacy Policy| GRE Prep Club Rules| Contact

Powered by phpBB © phpBB Group

Kindly note that the GRE® test is a registered trademark of the Educational Testing Service®, and this site has neither been reviewed nor endorsed by ETS®.