What is the fraction of employees getting salary less than the average salary…

2015

What is the fraction of employees getting salary less than the average salary of all the employees ?

Answer: C. 55%Concept — The average (arithmetic mean) of a set of values is their total divided by how many values there are: mean = (sum of all values) / (number of…

  1. A.

    45%

  2. B.

    50%

  3. C.

    55%

  4. D.

    47%

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Show answer & explanation

Correct answer: C

Concept — The average (arithmetic mean) of a set of values is their total divided by how many values there are: mean = (sum of all values) / (number of values). It is a single balancing figure for the whole set, expressed in the same unit as the values themselves.

A mean is not a positional measure: it need not split a data set into two equal halves — that is the median. A few unusually large values pull the mean upward, so more than half of the data can lie below it. The share of values lying below the mean therefore has to be counted, never assumed, and the required fraction is (number of values strictly less than the mean) / (total number of values).

Application — applying this to the 20 monthly salaries listed in the table:

  1. Add all 20 salaries: 35 + 20 + 45 + 35 + 20 + 60 + 50 + 55 + 25 + 30 + 30 + 35 + 35 + 40 + 45 + 35 + 35 + 50 + 45 + 50 = 775 thousand rupees per month.

  2. Divide the total by the number of employees: mean = 775 / 20 = 38.75 thousand rupees per month.

  3. Count how many salaries are strictly less than 38.75 thousand. Grouping equal salaries first makes the count quick — the salary-wise tally is shown below.

  4. Employees earning below the mean: 2 (at 20) + 1 (at 25) + 2 (at 30) + 6 (at 35) = 11 employees.

  5. Turn that count into the fraction asked for: 11 / 20 = 0.55, that is 55 per cent of the employees.

Salary (thousand Rs per month)

No. of employees

Position relative to the mean of 38.75

20

2

below the mean

25

1

below the mean

30

2

below the mean

35

6

below the mean

40

1

above the mean

45

3

above the mean

50

3

above the mean

55

1

above the mean

60

1

above the mean

Total

20

11 below, 9 above

Cross-check — the 9 employees at or above the mean earn 40, 45, 45, 45, 50, 50, 50, 55 and 60 thousand, and 11 + 9 = 20 accounts for every employee. The two salary totals reconcile as well: the 11 lower salaries add to 335 thousand and the 9 higher ones to 440 thousand, and 335 + 440 = 775 thousand, the total already used. The count sits above half because the handful of large salaries (55 and 60 thousand) lift the mean above the most common salary of 35 thousand, which alone is drawn by 6 of the 20 employees.

Result — 11 of the 20 employees draw less than the average salary of 38.75 thousand rupees per month, so the required fraction is 11/20 = 55 per cent.

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