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 eroded the real purchasing power that any given bonus amount represents.
  3. The firm's headcount may have dropped sharply over the same ten-year span.
  4. Employees today may simply be working more hours than employees did ten years ago.
  5. No employee at the firm has ever received a bonus larger than the current average figure.

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