In the year 2006, a large state university raised its tuition and fees by 5% for most undergraduate students. The following year, school administrators imposed an additional 5% tuition hike for the same undergraduate students. Despite consecutive tuition hikes, the total amount of money collected by the university in tuition and fees remained constant until 2007, when it decreased dramatically.
Each of the following , if true, could help to resolve the apparent discrepancy described above EXCEPT :
A. Beginning in 2007, the tuition and fees for scholarship students were deposited in a different account, which artificially deflated the number reported in the study.
B. The increase in Tuition and fees caused a drop in enrollment in 2007.
C.The tuition increases were waived for all students who pre-enrolled for classes.
D.The total enrollment at the university increased dramatically in 2007.
E. In 2007, the university eliminated several undergraduate programs, which had formerly attracted hundreds of students.
Discussion is always welcome here, how to find the answer to this?
OA D
In the year 2006
This topic has expert replies
-
- Moderator
- Posts: 7187
- Joined: Thu Sep 07, 2017 4:43 pm
- Followed by:23 members
- EconomistGMATTutor
- GMAT Instructor
- Posts: 555
- Joined: Wed Oct 04, 2017 4:18 pm
- Thanked: 180 times
- Followed by:12 members
The apparent discrepancy: Tuition and fees increased, but money collected from these sources held constant and then decreased.
Your job is to explain how both of these things can be true. Or, since it's an EXCEPT question, find four choices that explain away the discrepancy and one that doesn't.
Choice A states that the records are incorrect, which could explain why the increase in tuition/fees didn't show up as an increase in money collected. NOTE: This is a poorly worded choice, as it refers to a study not mentioned in the argument. Actual test questions are more carefully worded.
Choice B explains that the increase caused a drop in enrollment that could have more than offset the increase. In other words, If they raised the tuition/fees by 5% but only enrolled half the number of students, that would lead to a decrease in money collected. Discrepancy resolved.
Choice C explains that, though tuition was theoretically increased, some students didn't have to pay this increase. It then makes sense that the college might not have collected as much money.
Choice D is correct. If enrollment increased AND tuition/fees increased, then you would expect money collected to increase. This just adds to the discrepancy.
Choice E implies that enrollment decreased, which would, like Choice B, explain why money collected didn't increase.
I'm available if you'd like any follow up.
Your job is to explain how both of these things can be true. Or, since it's an EXCEPT question, find four choices that explain away the discrepancy and one that doesn't.
Choice A states that the records are incorrect, which could explain why the increase in tuition/fees didn't show up as an increase in money collected. NOTE: This is a poorly worded choice, as it refers to a study not mentioned in the argument. Actual test questions are more carefully worded.
Choice B explains that the increase caused a drop in enrollment that could have more than offset the increase. In other words, If they raised the tuition/fees by 5% but only enrolled half the number of students, that would lead to a decrease in money collected. Discrepancy resolved.
Choice C explains that, though tuition was theoretically increased, some students didn't have to pay this increase. It then makes sense that the college might not have collected as much money.
Choice D is correct. If enrollment increased AND tuition/fees increased, then you would expect money collected to increase. This just adds to the discrepancy.
Choice E implies that enrollment decreased, which would, like Choice B, explain why money collected didn't increase.
I'm available if you'd like any follow up.
GMAT Prep From The Economist
We offer 70+ point score improvement money back guarantee.
Our average student improves 98 points.
We offer 70+ point score improvement money back guarantee.
Our average student improves 98 points.