Hi lheiannie07,
We're told that M is a positive integer. We're asked for the number of digits that M^3 has. This question can be solved by TESTing VALUES.
1) M has 3 digits.
IF....
M=100, then M^3 = 1,000,000 and the answer to the question is 7
M=300, then M^3 = 27,000,000 and the answer to the question is 8
Fact 1 is INSUFFICIENT
2) M^2 has 5 digits
The same values that we used in Fact 1 also 'fit' Fact 2:
M=100, M^2=10,000 and M^3 = 1,000,000 and the answer to the question is 7
M=300, M^2=90,000 and M^3 = 27,000,000 and the answer to the question is 8
Fact 2 is INSUFFICIENT
Combined, there's no more work needed. We already have two values that 'fit' both Facts and produce two different answers.
Combined, INSUFFICIENT
Final Answer: E
GMAT assassins aren't born, they're made,
Rich