Question

The average income of all the Infosys employees is Rs. 20,000 per month. Recently the company announced the increment of Rs. 2,000 per month for all the employees. The new average of all the employees is : (a), Rs. 22,000 (b) Rs. 40,000 (C) Rs. 22,00 (d) data insufficient

Short answer

Answer: Rs. 22,000

Step-by-step solution

Understand the problem

There is an increment of Rs. 2,000 per month for all the employees. The average income of all Infosys employees before the increment is Rs. 20,000 per month. We need to find the new average of all the employees after receiving the increment.

Calculate the new average income

Since every employee received a raise of Rs. 2,000, the new average income will be the old average income plus the increment, i.e., New Average Income = Old Average Income + Increment Let's plug in the given values: New Average Income = 20,000 + 2,000 New Average Income = 22,000

Choose the correct option

With the new average income calculated, we can now look at the given options and select the appropriate one. The correct option is: (a) Rs. 22,000

Key concepts

Quantitative Aptitude

Quantitative aptitude is a key skill for students to master, particularly when they are faced with problems that require them to quantify changes in numerical values. It involves the ability to logically understand and solve problems using mathematical concepts and numbers. In our exercise example, quantitative aptitude is employed when figuring out how a uniform increase in payment affects the average income of employees.
When presented with a quantitative problem, it is important to first comprehend the question. The problem provided talks about an 'average income', which is a quantitative concept that requires an understanding of both averages and income calculation. After understanding the problem, the next step typically involves applying a systematic approach to solve it, which could involve arithmetic operations like addition or subtraction, and in more complicated scenarios, algebraic methods might come into play.
To excel in quantitative aptitude, it's essential not only to be familiar with the basic math operations but also to have a strategy for approaching various types of problems. This includes identifying relevant information, disregarding non-essential details, and systematically working through the calculation steps, as shown in the solution to our exercise.

Increment Calculation

Increment calculation is a straightforward concept that often comes up in finance and budgeting problems. It represents a uniform increase applied to a set of numbers. In the context of our exercise, the increment is the fixed amount of raise given to each employee by their company, which is Rs. 2,000.
To work with increments effectively:

• Identify the base value that will be affected by the increment. In our scenario, the base value is the initial average income of Rs. 20,000.
• Determine the increment amount. Here, it's a monthly increase of Rs. 2,000.
• Apply the increment to the base value. This calculates the new value after the increment has been factored in.

In more complex situations, the calculation might require additional steps, like if the increment is presented as a percentage or if it varies among different subsets of data. However, the core idea remains the same: to find the revised figure after applying the increase.

Average Concept

The concept of average plays a pivotal role in data analysis, allowing us to summarize a large set of numbers into a single representative value. It is particularly useful when comparing groups or understanding the overall trend of a dataset. In our textbook example, the average income is used to give a simplified view of all employees' earnings.
To calculate a new average when an increment is applied uniformly:

• Start with the current average value.
• Add the increment to this value. Since the increment is the same for all items in the set, the average will increase uniformly by the amount of the increment.
• Verify the new average value by comparing it against possible options or by checking the consistency of the calculation.

The average is robust against the exact number of items in the group, provided the increment is applied to all of them equally. This concept is crucial in determining the new average without knowing the total number of employees in the exercise, showcasing the power of averages in simplifying complex data.