easy · LSAT Logical Reasoning

A company's annual report states that the average employee salary rose by ten percent over the past year. The report concludes that every employee is therefore earning more than they did the year before.

The reasoning in the report is flawed because it

  1. overlooks that an average can climb even while many individuals' pay stays flat or falls, provided a few large raises pull the mean upward
  2. does not say whether the reported ten percent figure is measured before taxes or after them, or gross of mandatory payroll deductions
  3. fails to account for any change in the total number of people the company actually employs over the course of the entire reporting year ahead
  4. assumes that the size of one's salary is the only thing motivating the company's employees to keep working there year after year
  5. treats a rise in the average reported salary as conclusive proof that the company's overall profits must also have risen this past year

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