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Occupancy rate

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Occupancy rate

by luckypiscian » Sat Jul 06, 2013 5:33 am
Occupancy rate is defined as the number of units occupied divided by the number of total units. Was the occupancy rate in a certain apartment complex greater than 45% on June 30?

On January 1st, the occupancy rate was 75%.

At the end of each month from February to June, the occupancy rate was 80% of the figure at the end of the preceding month.

A Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient to answer the question asked
B Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient to answer the question asked
C Both statements (1) and (2) TOGETHER are sufficient to answer the question asked; but NEITHER statement ALONE is sufficient
D EACH statement ALONE is sufficient to answer the question asked
E Statements (1) and (2) TOGETHER are NOT sufficient to answer the question asked, and additional data specific to the problem are needed
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by luckypiscian » Sat Jul 06, 2013 5:39 am
luckypiscian wrote:Occupancy rate is defined as the number of units occupied divided by the number of total units. Was the occupancy rate in a certain apartment complex greater than 45% on June 30?

1 On January 1st, the occupancy rate was 75%.

2 At the end of each month from February to June, the occupancy rate was 80% of the figure at the end of the preceding month.

A Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient to answer the question asked
B Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient to answer the question asked
C Both statements (1) and (2) TOGETHER are sufficient to answer the question asked; but NEITHER statement ALONE is sufficient
D EACH statement ALONE is sufficient to answer the question asked
E Statements (1) and (2) TOGETHER are NOT sufficient to answer the question asked, and additional data specific to the problem are needed
OA says B
We don't know what was the occupancy rate in January End, the how can statement 2 be sufficient?
Since statement 1 also doesn't say anything about rate at January end, I feel it should be E
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by GMATGuruNY » Sat Jul 06, 2013 1:51 pm
luckypiscian wrote:Occupancy rate is defined as the number of units occupied divided by the number of total units. Was the occupancy rate in a certain apartment complex greater than 45% on June 30?

1. On January 1st, the occupancy rate was 75%.

2. At the end of each month from February to June, the occupancy rate was 80% of the figure at the end of the preceding month.
Statement 1: On January 1st, the occupancy rate was 75%.
No way to determine the occupancy rate at the end of June.
INSUFFICIENT.

Statement 2: At the end of each month from February to June, the occupancy rate was 80% of the figure at the end of the preceding month.
The wording here is ambiguous: it is not crystal clear whether the first decrease occurs at the end of February (February = 80% of January) or at the end of March (March = 80% of February).
MAXIMUM possible case:
Let the occupancy rate at the end of February = 100%.
Each month thereafter, the occupancy rate decreases by 20%:
March = 100 - .2(100) = 100-20 = 80.
April = 80 - .2(80) = 80-16 = 64.
May = 64 - .2(64) = 64 - 12.8 ≈ 50.
June = 50 - .2(50) = 50 - 10 = 40.
Since the MAXIMUM possible rate at the end of June ≈ 40%, it is not possible that the occupancy rate at the end of June was greater than 45%.
SUFFICIENT.

The correct answer is B.
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