GMAT Quant: Question of the Day!

Try Picking Numbers with the GMAT practice problem of the day!

Last year the price per share of Stock X increased by k percent and the earnings per share of Stock X increased by m percent, where k is greater than m. By what percent did the ratio of price per share to earnings per share increase, in terms of k and m?

A. k/m
B. (k – m)
C. [100 (k – m)]/ (100 + k)
D. [100 (k – m)]/(100 + m)
E. [100 (k – m)]/ (100 + k + m)


If the original price per share of Stock X = 100
Let’s say k = 20
New price per share = 120

Original earnings per share of Stock X = 100
Let’s say m = 5 (since k > m)
New earnings per share = 105

Old ratio of price/earnings = 100/100 = 1
New ratio of price/earnings = 120/105 = approx 1.14

The percent increase is approx 14%.

Plug in our numbers into the answer choices, and look for the choice that also yields 14%:

A. k/m = 20/5 = 4 too small

B. (k – m) = 20 – 5 = 15 too big

C. 100 (15) / 100 + 20 = 1500 / 120 = 12.5 too small

D. 100 (15) / 100 + 5 = 1500/105 = approx 14. CORRECT!

E. 100 (15) / 100 + 20 + 5 = 1500/125 = 12

The answer is (D).

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Using Strategy on the GMAT to Improve your Score

When a GMAT student asks me, “What can I do to get better scores?” usually the first thing I ask is, “What is your current strategy?” Most of the time, I get a pretty vague response. Reading about strategy is the OG, on the BTG forum, or in a GMAT book is NOT the same as actually having a solid strategy. The word “strategy” may sound fuzzy, but all it means is a simple step-by-step approach for each unique question type.

Not only do you have to choose a strategy that works for you, but you have to implement it every time, practicing enough so that is becomes second-hand. Ballet dancers practice a pirouette millions of times, so that when they perform onstage they don’t have to think about it. You want to do the same thing for GMAT.

Before you sit down to take your next diagnostic on GMATPrep, quickly review this strategy cheat sheet (or make one of your own). These methods may not necessarily work for you, but you’ll only learn what does through trial and error. For more in-depth discussion on each of these strategies, search my other posts.

Verbal

Reading Comprehension –

1. Break down the passage. 2. Rephrase the question. 3. Predict an answer. 4. Eliminate.

Critical Reasoning –

1. Identify the Conclusion, Evidence & Assumptions. 2. Rephrase the question. 3. Predict and answer.

Sentence Correction –

1. Spot the primary error. 2. Eliminate answer choices that do not fix. 3. Look for secondary errors and eliminate.

Quant

Problem Solving –

1. Write down the given information. 2. Scan the answer choices. 3. Look for ways to pick numbers or plug in. 4. Recall relevant formulas. 5. Solve.

Data Sufficiency –

1. Identify the type of DS. 2. Determine what is needed for sufficiency. 3. Evaluate statements independently. 4. Combine if needed.

How Drawing a Picture Can Help you Get More GMAT CR Correct!

Take a look at this Critical Reasoning question from 1000 CR:

Archaeologists seeking the location of a legendary siege and destruction of a city are excavating in several possible places, including a middle and a lower layer of a large mound. The bottom of the middle layer contains some pieces of pottery of type 3, known to be from a later period than the time of the destruction of the city, but the lower layer does not.

The force of the evidence cited above is most seriously weakened if which of the following is true?

(A) Gerbils, small animals long native to the area, dig large burrows into which objects can fall when the burrows collapse.
(B) Pottery of types 1 and 2, found in the lower level, was used in the cities from which, according to the legend, the besieging forces came.
(C) Several pieces of stone from a lower-layer wall have been found incorporated into the remains of a building in the middle layer.
(D) Both the middle and the lower layer show evidence of large-scale destruction of habitations by fire.
(E) Bronze ax heads of a type used at the time of the siege were found in the lower level of excavation.

This one is interesting since we are not provided with a conclusion, so we have to draw one based on the evidence.

Evidence: Bottom of middle layer contains pottery 3. Pottery 3 is made AFTER the destruction.

I’m going to draw a picture, because drawing is fun, and totally under-rated when it comes to GMAT Critical Reasoning. 🙂

We can infer that usually the deeper the level = the older the time period. Since as we move forward in time, we generally build up on things.

So, the city was probably destroyed around the lower layer, or in the middle layer but beneath where the pottery was found.

Question: What casts doubt on the Type 3 pottery in the middle layer/destruction of city inference?

Prediction: If the pottery was moved around — if the location doesn’t represent the time period accurately.

A – decent choice, shows pottery could’ve been moved
B – doesn’t comment on Type 3 pottery
C – this implies at some point the middle-layer people used the wall below them to build up — but doesn’t show that the pottery could have moved down or up
D – Fire is totally irrelevant
E – “at the time of the siege” is vague — and this doesn’t relate at all to the pottery evidence

The correct answer is (A).

GMAT CR: “Weaken” Practice Question!

Try this “Weaken” question — remember to take notes on the passage, then compare them to mine!

Although the organic farms in the agricultural community of Greendale are destined to shut down within the next decade as a result of competition from the organic mega-farm Full Foods, the farmland will not go unused for long. In the decade since the opening of OmniFoods, Inc., a non-organic farm conglomerate, a new owner has bought and reopened every farm in Greendale that has shut down due to competition with OmniFoods, Inc.

Which of the following, if true, most seriously weakens the argument?

A. Many customers of OmniFoods, Inc. are expected to buy less nonorganic food than they did before the Full Foods farm opened in Greendale.
B. The new farms that have opened in the agricultural community of Greendale since OmniFoods, Inc. opened have been primarily organic farms.
C. Many farms in Greendale sell produce that is not available to buy from either OmniFoods, Inc. or from Full Foods.
D. The demand for organic food is expected to increase at a faster rate over the next decade than at any time over the past fifty years.
E. The agricultural community of Greendale currently has more different farms operating within its borders than it ever has before

Here’s how to break this one down!

Conclusion: Farmland will not go unused when small farms shut down.

Evidence: Omnifoods precedent

Assumption: What is true for non-organic Omni is true for organic Full Foods.

Question: What WEAKENS?

Prediction: If there is a difference between Full Foods & Omni’s practices

A – customers are irrelevant
B – shows a difference
C – farmland could still be used regardless of what is sold
D – demand is irrelevant
E – change in diff types of farms over time is irrelevant

GMAT: Sentence Correction Question of the Day!

Try this stumper from Kaplan on your own, then check your work!

Question:

The word “December” is derived from the Latin word for “ten,” which seems odd considering it’s the twelfth month, but when you realize that the earliest Roman calendar had just ten months, it all makes perfect sense.

A. The word “December” is derived from the Latin word for “ten,” which seems odd considering it’s the twelfth month, but when you realize that the earliest Roman calendar had just ten months, it all makes perfect sense.

B. It seems odd that the name of the twelfth month of the year, “December,” is derived from the Latin word for “ten,” until you realize that the earliest Roman calendar had just ten months.

C. The word “December” is derived from the Latin word for “ten,” which seems odd considering it’s the twelfth month, but when you realized that the earliest Roman calendar had just ten months, it all makes perfect sense.

D. It makes perfect sense that the word “December” is derived from the Latin word for “ten,” which seems odd considering it’s the twelfth month, but the earliest Roman calendar had just ten months, so it’s logical.

E. Since December is the twelfth month of our calendar year, it seems odd that the word “December” is derived from the Latin word for “ten,” but when you realize that the earliest Roman calendar had just ten months, it all makes perfect sense.

Explanation:

So what’s the easiest way to eliminate here? By noticing that the pronoun “it’s” it ambiguous since it could refer to either “December” or “ten” so A, C, and D are out. Between B and E, E is clearly the more wordy and muddled choice meaning-wise. B is correct.