It is currently 15 Jul 2020, 04:28

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Based on the information given, which of the following state

Author Message
TAGS:
Founder
Joined: 18 Apr 2015
Posts: 12111
Followers: 256

Kudos [?]: 3027 [0], given: 11295

Based on the information given, which of the following state [#permalink]  13 Sep 2017, 12:26
Expert's post
00:00

Question Stats:

47% (01:42) correct 52% (01:53) wrong based on 76 sessions

Attachment:

#GREpracticequestion For 2008 the dollar amount of sales at Store R.jpg [ 38.87 KiB | Viewed 4230 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

_________________

Need Practice? 20 Free GRE Quant Tests available for free with 20 Kudos
GRE Prep Club Members of the Month: Each member of the month will get three months free access of GRE Prep Club tests.

Founder
Joined: 18 Apr 2015
Posts: 12111
Followers: 256

Kudos [?]: 3027 [0], given: 11295

Re: Based on the information given, which of the following state [#permalink]  13 Sep 2017, 12:29
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.

_________________

Need Practice? 20 Free GRE Quant Tests available for free with 20 Kudos
GRE Prep Club Members of the Month: Each member of the month will get three months free access of GRE Prep Club tests.

Director
Joined: 03 Sep 2017
Posts: 518
Followers: 2

Kudos [?]: 420 [1] , given: 66

Re: Based on the information given, which of the following state [#permalink]  26 Sep 2017, 07:34
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
Posts: 12111
Followers: 256

Kudos [?]: 3027 [0], given: 11295

Re: Based on the information given, which of the following state [#permalink]  26 Sep 2017, 10:43
Expert's post
Thank you so much. Fixed

Regards
_________________

Need Practice? 20 Free GRE Quant Tests available for free with 20 Kudos
GRE Prep Club Members of the Month: Each member of the month will get three months free access of GRE Prep Club tests.

Director
Joined: 03 Sep 2017
Posts: 518
Followers: 2

Kudos [?]: 420 [1] , given: 66

Re: Based on the information given, which of the following state [#permalink]  27 Sep 2017, 04:34
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%.

Retired Moderator
Joined: 07 Jun 2014
Posts: 4804
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 163

Kudos [?]: 2776 [0], given: 394

Re: Based on the information given, which of the following state [#permalink]  09 Feb 2020, 10:03
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).
_________________

Sandy
If you found this post useful, please let me know by pressing the Kudos Button

Try our free Online GRE Test

GRE Instructor
Joined: 10 Apr 2015
Posts: 3535
Followers: 134

Kudos [?]: 4020 [0], given: 65

Re: Based on the information given, which of the following state [#permalink]  09 Feb 2020, 11:00
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
_________________

Brent Hanneson – Creator of greenlighttestprep.com

Intern
Joined: 19 Feb 2020
Posts: 28
Followers: 0

Kudos [?]: 1 [0], given: 1

Re: Based on the information given, which of the following state [#permalink]  24 Feb 2020, 03:12
Thank you
Display posts from previous: Sort by

# Based on the information given, which of the following state

 Powered by phpBB © phpBB Group Kindly note that the GRE® test is a registered trademark of the Educational Testing Service®, and this site has neither been reviewed nor endorsed by ETS®.