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The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.
Which of the following can properly be inferred about the past five years from the statements above?
  • a)
    The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.
  • b)
    The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.
  • c)
    The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.
  • d)
    The average wage paid to the workforce is greater at The West Observer than at The East Observer.
  • e)
    The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.
Correct answer is option 'E'. Can you explain this answer?
Verified Answer
The Observer is a newspaper company that has two divisions: The East O...
Pre-Thinking
Conclusion Clarification
N/ A
Pre-Thinking Approach
In order to see what can be inferred about the past five years from the statements, we need to observe all the facts given in the argument and see if the information in the passage is true, what else must also be true.
Inferences: – From the above information we can infer the following:
  • Fact #3 – For the past five years, The EO has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest.
  • Inference – For the past five years, The WO accounted for 60% of the workforce of The Observer.
 
  • Fact #4 – Over the same period, The WO has accounted for 50% of the total wages paid by The Observer.
  • Inference –Fore the past five years, the EO has accounted for 50% of the total wages paid by The Observer.
 
  • Linkage #3 – (ref. logical structure)
  • Inference –The average pay at EO was 50% higher (1.25/0.83 = 1.5) than the average pay at WO.
For example: Let’s assume that the total wages paid were $100 while the total number of employees at The Observer was 100.  This means, the average pay at WO was $50/60 = $0.83, while the average pay at EO was $50/40 = $1.25.
With this pre-thinking in mind, let's take a look at the option statements.
Answer Choices
A
The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.
Incorrect - No information given
This option can’t be inferred from the passage since we have no information regarding hierarchy.
B
The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.
Incorrect - No information given
This option can’t be inferred from the information given. The passage doesn’t talk about motivation level at all.
C
The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.
Incorrect - No information given
The passage doesn’t given any information about revenue generation.
D
The average wage paid to the workforce is greater at The West Observer than at The East Observer.
Incorrect - Against the given information
This option is opposite of statement 5, which we arrived at, during pre-thinking.
E
The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.
Correct
This option is written along the lines of our pre-thinking linkage 3. If there were 60 employees at WO, there would be 40 at EO. This means that the employee strength at EO is 40/60 ~= 66% of that at WO. Or in other words, there are nearly 33% less employees at The East Observer, compared to The West Observer. This number is higher than 25% as mentioned in this option.
 
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The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Observer is a newspaper company that has two divisions: The East Observer and The West Observer. All the employees at The Observer work in either of the two divisions. For the past five years, The East Observer has consistently accounted for 40% of the total workforce of The Observer while The West Observer has accounted for the rest. Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. Can you explain this answer?.
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Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. Can you explain this answer? defined & explained in the simplest way possible. 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Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. 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Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. 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Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. 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Over the same period, The West Observer has accounted for 50% of the total wages paid by The Observer.Which of the following can properly be inferred about the past five years from the statements above?a)The distribution of people across different hierarchical levels is different in The East Observer than in The West Observer.b)The average motivation level of employees working in the two divisions is different, even though the difference in number is not significantly large.c)The average revenue generated per employee is expected to be greater in The East Observer than in The West Observer.d)The average wage paid to the workforce is greater at The West Observer than at The East Observer.e)The number of people working at The East Observer is at least 25% less than the number of people working at The West Observer.Correct answer is option 'E'. Can you explain this answer? tests, examples and also practice GMAT tests.
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