Between the years 2002-2007, firm XYZ had a mean annual profit of $251,000. Did the firm earn a positive profit in 2008?
(1) Firm XYZ had a profit 10% greater than its minimum profit over the period 2002-2007.
(2) Firm XYZ had a profit 20% lower than its median annual profit over the period 2002-2007.
ANSWER IS E CAN SOMEONE PLEASE EXPLAIN?
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between the years 2002 and 2007
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smackmartine
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Question: Did the firm earn a positive profit in 2008 ?
(1) Firm XYZ had a profit 10% greater than its minimum profit over the period 2002-2007.
We do not know what was the minimum profit over the period 2002-2007. Even if we do, the knowledge would have no bearing on Profits of 2008. -Insuff
(2) Firm XYZ had a profit 20% lower than its median annual profit over the period 2002-2007.
The knowledge of profit for one year in between 2000 and 2007 has no bearing on Profits of 2008. -Insuff
combining 1 and 2 does not provide any relevant knowledge about year 2008, because no relation exists between the period 2002-2007 and year 2008. -Insuff
So, E
(1) Firm XYZ had a profit 10% greater than its minimum profit over the period 2002-2007.
We do not know what was the minimum profit over the period 2002-2007. Even if we do, the knowledge would have no bearing on Profits of 2008. -Insuff
(2) Firm XYZ had a profit 20% lower than its median annual profit over the period 2002-2007.
The knowledge of profit for one year in between 2000 and 2007 has no bearing on Profits of 2008. -Insuff
combining 1 and 2 does not provide any relevant knowledge about year 2008, because no relation exists between the period 2002-2007 and year 2008. -Insuff
So, E
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tpr-becky
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Agree, knowing information about 2002 - 2007 will never tell you about 2008 without additional information provided.Therefore the answer is E.
Becky
Master GMAT Instructor
The Princeton Review
Irvine, CA
Master GMAT Instructor
The Princeton Review
Irvine, CA
