I solved this question by looking at the main diagram, and trying to prove answers false. Since this is a “must be true” question, any answer that could be false isn’t the right answer. Here’s the main diagram:
Since this is an explanation, I’m going to draw diagrams disproving A-D. But you should know that on my own test I did not make drawings for this question. I found it easiest to visualize possibilities in my head using the diagram. For example, I can look at that diagram and imagine K and P having $1000 and L/M having some combination of $3000/$5000. Or K and P having $1000/$3000 and L/M having $5000, etc.
However, if you make mistakes visualizing, then you should definitely draw diagrams.
This diagram proves that A and C could be false:
No employees have a $1000 bonus, and four employees have a $3000 bonus.
This diagram proves that B could be false:
Only two employees have a $3000 bonus.
This diagram proves that D could be false:
Only Xavier has a $5,000 bonus.
E is CORRECT. Highly effective employees must have the highest bonuses, so they’re the only ones who can have $5,000. And there are only three highly effective employees: Xavier, Lopez and Meng.
Note that while you can prove E right by logic, I didn’t find it easy to predict in advance that it would be right. So I disproved the other answers by quickly visualizing that they could be false.
However, if visualization is slow, it may be optimal for you to focus on answers that seem to have the most restrictions. For instance, you might notice that $5000 is restricted because only highly effective people can have $5000.
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