medium · LSAT Logical Reasoning

Ten years ago, the average annual bonus at our firm was $15,000. This year, the average bonus has risen to $25,000. It follows that most employees are now receiving larger bonuses than they did ten years ago.

The argument is flawed because it overlooks the possibility that:

  1. A handful of unusually large bonuses can pull the average upward while the typical employee's bonus is unchanged.
  2. Inflation over the decade has steadily eroded the real purchasing power that any given nominal bonus amount holds.
  3. The firm's total headcount may have dropped so sharply over the same ten-year span as to distort the comparison.
  4. Employees today may simply be working far more hours to earn those bonuses than employees did a full decade earlier.
  5. No employee anywhere at the firm has ever, in its entire history, received a bonus larger than the current average.

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