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Based on the information given, which of the following state [#permalink]
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Question Stats: 49% (01:40) correct 50% (01:46) wrong based on 113 sessions

Attachment: #GREpracticequestion For 2008 the dollar amount of sales at Store R.jpg [ 38.87 KiB | Viewed 5708 times ]

Based on the information given, which of the following statements must be true?

Indicate all such statements.

A) For 2008 the dollar amount of sales at Store R was greater than that at each of the other four stores.

B) The dollar amount of sales at Store S for 2008 was 22 percent less than that for 2006.

C) The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006.

Practice Questions
Question: 3
Page: 128
Difficulty: medium/hard

Disclaimer: the older version of this question is located here
[Reveal] Spoiler: OA

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Founder  Joined: 18 Apr 2015
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Kudos [?]: 3535 , given: 12628

Re: Based on the information given, which of the following state [#permalink]
Expert's post
Explanation

Quote:
For Choice A, since the only data given in Figure 8 are percent changes from year to year, there is no way to compare the actual dollar amount of sales at the stores for 2008 or for any other year. Even though Store R had the greatest percent increase from 2006 to 2008, its actual dollar amount of sales for 2008 may have been much smaller than that for any of the other four stores, and therefore Choice A is not necessarily true. For Choice B, even though the sum of the two percent decreases would suggest a 22 percent decrease, the bases of the percents are different. If B is the dollar amount of sales at Store S for 2006, then the dollar amount for 2007 is 93 percent of B, or and the dollar amount for 2008 is given by 0.93B, (0.85)(0.93)B, which is Note that this represents a percent decrease of 0.7905B. percent, which is less than 22 percent, and so Choice B is 100 − 79.05 = 20.95 not true.
For Choice C, if C is the dollar amount of sales at Store R for 2006, then the dollar amount for 2007 is given by and the dollar amount for 2008 is given 1.05C by which is Note that this represents a 17.6 percent (1.12)(1.05)C, 1.176C. the increase, which is greater than 17 percent, so Choice C must be true.

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Re: Based on the information given, which of the following state [#permalink]
1
KUDOS
Carcass wrote:
Attachment:
used_car.jpg

Based on the information given, which of the following statements must be true?

Indicate all such statements.

 For 2008 the dollar amount of sales at Store R was greater than that at each of the other four stores.

 The dollar amount of sales at Store S for 2008 was 22 percent less than that for 2006.

 The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006.

Practice Questions
Question: 3
Page: 128
Difficulty: medium/hard

There is a mismatch between question and table!
Founder  Joined: 18 Apr 2015
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Kudos [?]: 3535 , given: 12628

Re: Based on the information given, which of the following state [#permalink]
Expert's post
Thank you so much. Fixed

Regards
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Re: Based on the information given, which of the following state [#permalink]
1
KUDOS
Carcass wrote:
Thank you so much. Fixed

Regards

 For 2008 the dollar amount of sales at Store R was greater than that at each of the other four stores.

Since we have no information about the dollar amount of sales of each store, we can't say which one is the greatest in 2008. Even though Store R has experienced two consecutive increases, this does not give any information about the actual amount of money that could be even lower than others.

 The dollar amount of sales at Store S for 2008 was 22 percent less than that for 2006.

The percent decrease of sales at Store S is not computed as the sum of the two decreases (-7 - 15), but it is computed as ((1-0.07)(1-0.15)X)-X/X*100, where X is the amount of sales. The result is -20.95% that is different from 22%.

 The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006.

Here the question says if the increase has been more than 17 percent. Then, using the same formula as above we can compute ((1+0.05)(1+0.12)X-X)/X*100 = 17.6%, which is greater than 17%.

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Re: Based on the information given, which of the following state [#permalink]
Expert's post
Explanation

For Choice A, since the only data given in Figure 8 are percent changes from year to year, there is no way to compare the actual dollar amount of sales at the stores for 2008 or for any other year. Even though Store R had the greatest percent increase from 2006 to 2008, its actual dollar amount of sales for 2008 may have been much smaller than that for any of the other four stores, and therefore Choice A is not necessarily true.

For Choice B, even though the sum of the two percent decreases would suggest a 22 percent decrease, the bases of the percents are different. If B is the dollar amount of sales at Store S for 2006, then the dollar amount for 2007 is 93 percent of B, or $$0.93B$$ and the dollar amount for 2008 is given by $$0.85 \times 0.93 \times B$$ which is $$0.7905B$$. Note that this represents a percent decrease of $$100-79.05 = 20.95$$ percent, which is not equal to 22 percent, and so Choice B is not true.

For Choice C, if C is the dollar amount of sales at Store R for 2006, then the dollar amount for 2007 is given by $$1.05C$$ and the dollar amount for 2008 is given by $$1.12 \times 1.05 \times C$$ which is $$1.176C$$. Note that this represents a 17.6 percent increase, which is greater than 17 percent, so Choice C must be true.

Therefore, the correct answer consists of only Choice C (The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006).
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Re: Based on the information given, which of the following state [#permalink]
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Expert's post
(A) For 2008 the dollar amount of sales at Store R was greater than that at each of the other four stores.
This need not be true.
The figures in this table are all RELATIVE from year to year
Sure, Store R may have seen the biggest PERCENT increase in sales figures, but we know nothing about the actual sales figures.
For example, it's possible that Store R's sales figures $100 in 2006,$105 in 2007 and $117.60 in 2008 Meanwhile, it's possible that Store P's sales figures$100,000 in 2006, $110,000 in 2007 and$99,000 in 2008

(B) The dollar amount of sales at Store S for 2008 was 22 percent less than that for 2006.
This need not be true.
To see why, let's plug in some values.
Let store S's 2006 sales = $100 The table says that, from 2006 to 2007, sales DECREASED 7% So, the TOTAL sales for 2007 =$93

Next, the table says that, from 2007 to 2008, sales DECREASED 15%
15% of $93 =$13.95
So, the TOTAL sales for 2008 = $93 -$13.95 = $79.05 So, sales decreased from$100 to $79.05 This does NOT represents a 22% overall decrease. (C) The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006. This IS be true. To see why, let's plug in some values. Let store R's 2006 sales =$100
The table says that, from 2006 to 2007, sales INCREASED 5%
So, the TOTAL sales for 2007 = $105 Next, the table says that, from 2007 to 2008, sales INCREASED 12% 12% of$105 = $12.60 So, the TOTAL sales for 2008 =$105 + $12.60 =$117.60

So, sales increased from $100 to$117.60
This DOES represents an overall increase of more than a 17%.

[Reveal] Spoiler:
C only

Cheers,
Brent
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Re: Based on the information given, which of the following state [#permalink]
Thank you
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