• Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep

Annual percent change in the Consumer Price Index

This topic has 1 expert reply and 1 member reply
gmattesttaker2 Legendary Member Default Avatar
Joined
14 Feb 2012
Posted:
641 messages
Followed by:
8 members
Thanked:
11 times

Annual percent change in the Consumer Price Index

Post Sun Apr 27, 2014 8:04 pm
Hello,

Can you please tell me how to solve this question:


The attached graph displays the annual percent change in the Consumer Price Index for urban medical care between the years of 1994 and 2003. Based on the graph, please answer the questions below.

The Consumer Price Index figure for urban medical care for 2003 was _______ the figure for 2000.

Answer Choices: Higher than, lower than, approx. the same


From 1994 to 2003, the Consumer Price Index figure for urban healthcare _______

Answer Choices: increased by more than 20%, increased by less than 20%, decreased by less than 20%, decreased by more than 20%


The Consumer Price Index figure for urban healthcare was highest in _______

Answer Choices: 1994, 2001, 2002, 2003


Thanks a lot,
Sri
Attachments

This post contains an attachment. You must be logged in to download/view this file. Please login or register as a user.

Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!

GMAT/MBA Expert

Bill@VeritasPrep GMAT Instructor
Joined
29 Mar 2012
Posted:
1248 messages
Followed by:
186 members
Thanked:
503 times
Target GMAT Score:
800
GMAT Score:
780
Post Mon Apr 28, 2014 1:27 pm
The bar show year-over-year changes. For example, 2000's bar is approximately 4%. This means that the CPI was 4% higher in 2000 than it was in 1999.

1. Between 2000 and 2003, there were two years at ~5% increase and one year at ~4% increase. 2003 is higher than 2000.

2. Since we see positive changes for all years, we can quickly rule out the decrease answers. The annual changes are roughly +4, +3, +3, +3.5, +4, +4, +4, +5, +4. Cumulatively, this is more than 20%

3. Since each year saw positive growth, each year is higher than the previous years. 2003

_________________
Join Veritas Prep’s 2010 Instructor of the Year, Matt Douglas for GMATT Mondays

Visit the Veritas Prep Blog

Try the FREE Veritas Prep Practice Test

Thanked by: gmattesttaker2
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!
Tushar14 Senior | Next Rank: 100 Posts Default Avatar
Joined
14 Feb 2014
Posted:
44 messages
Thanked:
12 times
Post Thu May 01, 2014 8:25 pm
An increase in CPI-U by a certain fractional amount means an increase by that fractional amount in overall prices within the category like food, clothing etc. Don't get confuse considering Index and Percentage on 'Y' axis. Any +ve increase in % is resulting to increase in Index.

Just consider the annual % increase in CPI as % increase in salary and proceed.So even if you get 3% then 2% and later 1% but overall at last year your salary is higher as compared with the first year.
I hope now options can be selected easily.

None of us would want the salary trend as used in example, but just to explain.

Best Conversation Starters

1 Vincen 180 topics
2 lheiannie07 65 topics
3 Roland2rule 49 topics
4 ardz24 44 topics
5 LUANDATO 23 topics
See More Top Beat The GMAT Members...

Most Active Experts

1 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

147 posts
2 image description Rich.C@EMPOWERgma...

EMPOWERgmat

103 posts
3 image description GMATGuruNY

The Princeton Review Teacher

102 posts
4 image description EconomistGMATTutor

The Economist GMAT Tutor

94 posts
5 image description DavidG@VeritasPrep

Veritas Prep

76 posts
See More Top Beat The GMAT Experts