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Occupancy rate

by himu » Mon Apr 08, 2013 7:15 am
Occupancy rate is defined as the number of units occupied divided by the number of total units. Is 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.
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Source: — Data Sufficiency |
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by himu » Mon Apr 08, 2013 7:19 am
[spoiler]OA = B.
I do not agree, IMO = E.
Pls correct me if I am wrong, also request u to post the explanation.
Cheers,
~Himu.[/spoiler]
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by Anju@Gurome » Mon Apr 08, 2013 7:35 am
himu wrote:Occupancy rate is defined as the number of units occupied divided by the number of total units. Is 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.
Statement 1: There is no way to determine the occupancy rate at the end of June.

Not sufficient

Statement 2: The maximum occupancy rate of the complex at the end of February could have been 100%.
Hence, maximum occupancy rate at the end of June = 100*(0.8)*(0.8)*(0.8)*(0.8) = 64*(0.8)*(0.8) = (51.2)*(0.8) = (40.96) < 45

Sufficient

The correct answer is B.
Last edited by Anju@Gurome on Mon Apr 08, 2013 7:44 am, edited 2 times in total.
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by misterholmes » Mon Apr 08, 2013 7:40 am
Hey! Exciting question. First blush makes you want to pick C, since we can know what occupancy was to begin from using 1 and can work our way down using 2. On second blush though, we want to pick E, since the January 30 data is missing!

But on third blush, we have to ask whether 2 isn't enough all on its own...?

Could the occupancy possibly be greater than 45% after not one not two not three but FOUR consecutive declines? What number should we pick to begin with, so that we end up with a large occupancy on June 30?

If we pick a starting occupancy of 100% for end of February, we get 80% for March, 64% for April, 51.2% for May, and some number that is clearly smaller than 45% for June! So there is no way to get June 30 occupancy to rise above 45%. Very exciting question!

Kind Regards,

Misterholmes
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