Test: Numbers and Percents - GMAT MCQ

Our goal: Make change so that the new calculations make it possible for people with below median family income to afford M's median prices house.
Pre-thinking Options: Increase median income or reduce price of median priced house or reduce interest rate or increase the percent of pay that a family could afford to pay for housing

(A) Millington’s total population was 45,000 people.We don't what is value of new median

(B) Millington’s median annual family income was $27,000.Opposite

(C) The rate at which people in Millington had to pay mortgage interest was only 10 percent.Correct. Lowers the interest rate

(D) Millington’s median-priced house cost $80,000.Opposite

(E) Families in Millington could only afford to pay up to 22 percent of their annual income for housing.Opposite

A. Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.
This option suggests that Denoma increased its advertising spending to educate the public about its new models' capabilities. While this may have contributed to higher awareness and sales of Denoma models, it doesn't directly explain the decline in Denoma's overall sales revenue.

B. For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.
This option states that Denoma's major competitors experienced larger declines in revenue compared to Denoma. While it provides a comparison of revenue declines, it doesn't explain why Denoma's sales revenue declined despite the reported growth in sales revenue from Denoma models at electronics retailers.

C. A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.
This option states that a significant portion of Denoma's revenue comes from manufacturing components for other consumer-electronics manufacturers. While it provides information about Denoma's revenue sources, it doesn't directly explain the decline in Denoma's overall sales revenue.

D. Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.
This option highlights that Denoma does not have diversified business lines outside of consumer electronics. It suggests that Denoma may be more vulnerable to declines in retail sales of consumer electronics. While this information is relevant, it doesn't directly explain the decline in Denoma's sales revenue despite the reported growth in sales revenue from Denoma models at electronics retailers.

E. During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.
This option provides a plausible explanation for the decline in Denoma's sales revenue. It suggests that retailers sold the older models of Denoma's products at heavily discounted prices. As a result, the revenue generated from these sales would be lower, contributing to the decline in Denoma's overall sales revenue despite the reported growth in sales revenue from new Denoma models.

Among the options provided, option E is the one that most strongly explains the apparent surprising result of Denoma's decline in sales revenue despite the reported growth in sales revenue from Denoma models at electronics retailers.

A. Most automobile travel is local, and the networks of roads and streets in the country's settled areas have changed little over the last 20 years.
This option weakens the argument by suggesting that most automobile travel is local, meaning it occurs within settled areas. If the networks of roads and streets in these settled areas have remained unchanged over the last 20 years, it implies that the increase in highway capacity may not have had a significant impact on reducing traffic congestion in these local areas. This weakens the argument that the motorists' complaints are unwarranted.

B. Gasoline prices are high, and miles traveled per car per year have not changed much over the last 20 years.
This option provides information about high gasoline prices and stable miles traveled per car per year over the last 20 years. While this information is interesting, it doesn't directly weaken the argument or address the impact of highway capacity and the increase in registered automobiles on traffic congestion.

C. The country's urban centers have well-developed public transit systems that carry most of the people who commute into those centers.
This option suggests that the country's urban centers have well-developed public transit systems that carry most commuters. While this is beneficial for reducing traffic congestion in urban areas, it doesn't directly address the argument or the comparison between the increase in highway capacity and the increase in registered automobiles.

D. The average age of automobiles registered in the country is lower now than it was 20 years ago.
This option states that the average age of registered automobiles is lower now than it was 20 years ago. While it provides information about the average age of automobiles, it doesn't directly weaken the argument or address the impact of highway capacity and the increase in registered automobiles on traffic congestion.

E. Radio stations have long been broadcasting regular traffic reports that inform motorists about traffic congestion.
This option mentions that radio stations have been broadcasting regular traffic reports to inform motorists about traffic congestion. While this may help motorists be aware of traffic conditions, it doesn't directly weaken the argument or address the impact of highway capacity and the increase in registered automobiles on traffic congestion.

Among the options provided, option A is the one that most seriously weakens the argument. It suggests that most automobile travel is local and the road networks in settled areas have changed little, indicating that the increase in highway capacity may not have effectively alleviated traffic congestion in these areas.

A. With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
This option provides strong evidence that the magazine's profits are likely to decline if the plan is instituted. It indicates that the new postage rates would significantly increase the cost to mail each issue under the proposed plan. This suggests that the magazine's expenses would rise, potentially offsetting any savings from reducing the number of issues published. Therefore, it weakens the profitability of the plan.

B. The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity of the magazine's articles than about a possible loss of the current high quality of its articles.
This option states that the majority of the magazine's subscribers prioritize the quality of articles over the quantity of articles. While this information is important for understanding subscriber preferences, it doesn't directly address the impact on profits if the plan is instituted.

C. Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription price were increased.
This option suggests that many long-time subscribers would continue their subscriptions even if the subscription price were increased. While this is relevant for understanding subscriber loyalty, it doesn't provide strong evidence regarding the profitability of the plan.

D. Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
This option states that most advertisers will continue to spend the same amount on advertising per issue as they have in the past. While this is beneficial for maintaining advertising revenue, it doesn't directly address the impact on profits if the plan is instituted.

E. Production costs for the magazine are expected to remain stable.
This option provides information about the stability of production costs for the magazine. While it is important to consider production costs, it doesn't directly address the impact on profits if the plan is instituted.

Among the options provided, option A is the one that provides the strongest evidence that the magazine's profits are likely to decline if the plan is instituted. It highlights the significant increase in mailing costs per issue under the proposed plan, which would impact the magazine's expenses and potentially lead to lower profits.

A. The views of most of the state’s residents are in concordance with the views of the survey’s respondents.
This option provides strong support for the argument. It states that the views of the survey respondents align with the views of most of the state's residents. Since the survey indicated high levels of dissatisfaction with the governor's performance and a preference for the governor's opponent, if these views are representative of the broader population, it strengthens the argument that the incumbent governor is unlikely to be re-elected.

B. The governor has received a lot of bad publicity in the past owing to his involvement in a corruption scandal.
This option suggests that the governor has faced negative publicity due to his involvement in a corruption scandal. While this information may have a negative impact on the governor's popularity, it doesn't directly support the argument that the incumbent governor is unlikely to be voted back into office unless it is related to the dissatisfaction expressed by the survey respondents.

C. The survey only covered a small fraction of the state’s populace.
This option states that the survey only covered a small fraction of the state's population. While this information may raise concerns about the survey's representativeness, it weakens rather than supports the argument. It suggests that the survey's findings may not accurately reflect the views of the majority of residents.

D. The governor’s opponent is very popular amongst the residents of the state.
This option indicates that the governor's opponent is popular among the state's residents. While this may suggest that the governor's opponent has a better chance of winning the election, it doesn't directly support the argument that the incumbent governor is unlikely to be re-elected.

E. The newspapers in the state are against the governor and favor his opponent instead.
This option states that the newspapers in the state are against the governor and favor his opponent. While this may influence public opinion, it doesn't provide strong support for the argument unless it is linked to the views expressed by the survey respondents.

Among the options provided, option A is the one that most strongly supports the argument. It establishes a concordance between the views of the survey respondents and the views of most of the state's residents, strengthening the argument that the incumbent governor is unlikely to be voted back into office.

The answer to question (E) is the least directly relevant to the union leaders' consideration of whether attempting a boycott of Gasco will lead to acceptance of their contract proposal.

The union leaders are contemplating a consumer boycott against Gasco gas stations, which are owned by Energy Incorporated, the same corporation that owns Coalco. The main objective of the boycott is to pressure the company to accept the union's contract proposal. The relevance of the other options can be explained as follows:

(A) Would revenue losses by Gasco seriously affect Energy Incorporated? - This is relevant because if the revenue losses from the boycott would significantly impact Energy Incorporated, it may increase the pressure on the company to accept the union's proposal.

(B) Can current Gasco customers easily obtain gasoline elsewhere? - This is relevant because if Gasco customers can easily obtain gasoline from alternative sources, the effectiveness of the boycott in pressuring Energy Incorporated may be limited.

(C) Have other miners' unions won contracts similar to the one proposed by this union? - This is relevant because if other miners' unions have successfully achieved similar contract proposals, it provides evidence that the tactic of a consumer boycott can be effective.

(D) Have other unions that have employed a similar tactic achieved their goals with it? - This is relevant because if other unions have successfully achieved their goals through a consumer boycott, it suggests that the tactic may be effective in this case as well.

In contrast, option (E) about other corporations that own coal companies and gas stations is not directly relevant to the union leaders' consideration of whether the boycott of Gasco will lead to acceptance of their contract proposal. It doesn't directly address the effectiveness or impact of the boycott tactic on Energy Incorporated or Coalco.

A. Establish job-placement programs for students in courses relevant to hotel and restaurant professionals.
This option aims to provide potential students with an incentive to enroll in the program by offering job-placement programs. By offering prospects for career advancement or better job opportunities upon completion of the courses, hotel and restaurant professionals may be more inclined to enroll.

B. Conduct a publicity campaign to educate hotel and restaurant professionals on the benefits of adult education.
This option focuses on raising awareness among hotel and restaurant professionals about the benefits of adult education. By conducting a publicity campaign, the administration can highlight the advantages of enrolling in the evening adult education program, such as enhanced skills, knowledge, and career opportunities.

C. Offer credit courses in subjects relevant to hotel and restaurant professionals at the same price charged for non-credit courses.
This option addresses the administration's belief that the increase in tuition for credit courses may be driving the decrease in enrollments. By offering credit courses at the same price as non-credit courses, the financial barrier that may be deterring potential students from enrolling in credit courses is removed. This approach ensures that the cost of education does not hinder hotel and restaurant professionals from pursuing further studies.

D. Eliminate the disparity in the cost between credit and non-credit courses by increasing the price of the non-credit courses.
This option suggests increasing the price of non-credit courses to align them with the cost of credit courses. The idea is to eliminate the disparity in tuition, which may encourage more students to consider enrolling in credit courses since the financial difference between credit and non-credit options would no longer be a deterrent.

E. Establish a degree program made up entirely of credit courses from the evening adult education program.
This option proposes creating a degree program exclusively comprised of credit courses from the evening adult education program. By offering a complete degree program, the administration can attract students who seek a comprehensive educational experience and the academic recognition that comes with earning a degree.

In this context, option C appears to be the best prospect because it directly addresses the administration's belief that the increase in tuition for credit courses is causing the decline in enrollments, by offering relevant credit courses at the same price as non-credit courses.

A. Lawton’s recent success is due primarily to an upsurge in the number of residential clients he services.
This option weakens the argument because it suggests that residential clients have been a significant factor in Lawton's recent success. If residential clients have contributed to his success, limiting his service to them would not necessarily increase his average profit margin per job.

B. Lawton’s commercial clients would prefer that he focus more of his time and energy on their projects and less on the concerns of his residential clients.
This option supports the argument by indicating that commercial clients prioritize Lawton's services and would prefer him to focus on their projects rather than residential work. This suggests that by limiting his service to commercial clients and higher-value residential clients, Lawton could allocate more time and resources to projects with higher profit margins.

C. Residential work for which Lawton cannot bill more than $10,000 comprises a significant proportion of his low-profit-margin work.
This option strengthens the argument by highlighting that a significant portion of Lawton's low-profit-margin work falls below the $10,000 threshold. If limiting his service to higher-value residential clients allows him to avoid such low-profit-margin work, it would likely increase his average profit margin per job.

D. Due to the use of a more efficient cost-accounting system, Lawton’s average profit margin per job has increased in each of the last three years.
This option is not directly related to the argument about limiting his service to specific clients. While it suggests that Lawton's average profit margin has increased due to a more efficient cost-accounting system, it does not provide support for the conclusion that limiting his service would further increase the average profit margin per job.

E. Commercial jobs typically take longer to complete than residential jobs.
This option is unrelated to the argument's focus on increasing the average profit margin per job. It discusses the duration of different types of jobs but does not provide any information about the profitability or impact on Lawton's business.

Based on the analysis, option C, which highlights that a significant portion of Lawton's low-profit-margin work falls below the $10,000 threshold, most strengthens the conclusion that limiting his service to commercial clients and higher-value residential clients would increase Lawton's average profit margin per job.

A. A study conducted by a psychologist found that hearing music makes shoppers feel financially secure, so they are more likely to make impulse purchases.
This option strengthens the argument by providing a psychological explanation for the higher average spending in Quarx stores. The study indicates that hearing music creates a sense of financial security in shoppers, making them more inclined to make impulse purchases. This supports the claim that hearing music has a greater impact on customer spending compared to hearing advertisements.

B. Customers who hear advertisements for things they dislike form a negative association between their shopping experience and what they heard, making them less likely to return to the store where they heard the advertisement.
This option weakens the argument because it suggests that hearing advertisements can have a negative impact on customer behavior. If customers form negative associations with the store due to disliked advertisements, it could lead to decreased spending rather than increased spending. Therefore, this option does not strengthen the argument.

C. Stores that play music tend to carry products that are essential to daily life, while those that advertise specials often stock unessential, fun items that the stores hope consumers will decide to buy on a whim if offered a special price.
This option weakens the argument as it provides an alternative explanation for the difference in spending between Quarx and Cubix stores. If Quarx stores primarily carry essential products while Cubix stores focus on unessential, fun items, the disparity in spending could be attributed to the nature of the products rather than the impact of music or advertisements.

D. An economist who studied consumer shopping habits found that about half the population likes to listen to music while shopping, while the other half reports either disliking music or not noticing that music is playing.
This option does not directly strengthen the argument. Although it provides information about consumer preferences regarding music while shopping, it does not provide a clear link between music, advertisements, and customer spending. Therefore, it does not offer significant support to the argument.

E. According to a recent sociological study, customers say that hearing specials announced while they are shopping is irritating, but they often take advantage of the discounts offered in those announcements.
This option weakens the argument by suggesting that customers find the announcements irritating. While it acknowledges that customers take advantage of the discounts, the irritation factor could potentially lead to a negative shopping experience, which may not support increased spending. Therefore, this option does not strengthen the argument.

Based on the analysis, option A, which provides a psychological explanation for increased spending due to the impact of music, is the most effective in strengthening the argument.

A. Some advertisements are made to be displayed solely as art.
This option does not directly address the argument's assumption. It suggests that some advertisements may be created solely for artistic purposes, but it does not provide information about whether advertising as a whole can be considered art.

B. Some advertising executives are more concerned than others with the effectiveness of their product.
This option does not directly address the argument's assumption. It acknowledges that different advertising executives may have varying levels of concern for the effectiveness of their products, but it does not provide information about whether advertising as a whole can be considered art.

C. Advertising executives ought to be more concerned than they currently are with the artistic dimension of advertising.
This option does not directly address the argument's assumption. It suggests that advertising executives should prioritize the artistic dimension of advertising more than they currently do, but it does not provide information about whether advertising as a whole can be considered art.

D. Something is not "art" if its creator must be concerned with its practical effect.
This option directly relates to the argument's assumption. It suggests that if the creator of something must be concerned with its practical effect, then it cannot be considered art. The argument implies that because advertising executives must prioritize the effectiveness of their advertisements, advertising cannot be classified as art.

E. Artists are not concerned with the monetary value of their work.
This option does not directly address the argument's assumption. It implies that artists are not concerned with the monetary value of their work, but it does not provide information about whether advertising as a whole can be considered art.

Based on the analysis, option D, which states that something is not "art" if its creator must be concerned with its practical effect, is the assumption on which the argument depends. It supports the argument's claim that advertising cannot be considered art because advertising executives must prioritize the effectiveness of their advertisements as marketing tools.