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Challenging CR

by chaitanya.mehrotra » Sat Jun 25, 2011 1:34 am
In 1984, network television commercials accounted for 80% of all network and non-network television advertising revenue. In 2004, that figure was 60%. During that same period, operating cost for the networks remained steady, and in 2004 every major network announced record setting profits.

The information above, if true, supports which of the following conclusions?

A) Between 1984 and 2004, the number of homes with access to non-network television channels increased by more than 20%.
B) Teenagers comprise a growing proportion of television viewers, and teenagers prefer to watch non-network television shows.
C) The amount of advertising revenue earned from non-network television commercials in 2004 was greater than the amount of revenue earned by network television commercials in 1984.
D) Between 1984 and 2004, advertising revenue earned from non-network television commercials grew at a faster rate than revenue earned from network television commercials.
E) Soon revenue from non-network television commercials will surpass revenue from network television commercials.

I could not make out what the argument is all about ? Can somebody pls explain the approach to this questions ?

OA D
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by vikram4689 » Sat Jun 25, 2011 2:46 am
Well this was tough. From where you got this question. I would like to practice some MUST BE TRUE ques.

Now, lets proceed for answer

Network Non-Network Total Revenue
1984 80% 20% x

2004 60% 40% kx, revenue increase k times

A,B,E are clearly out of Scope.
C says 0.40kx > 0.80x Now this can be true or false depending upon how many times revenue increase. If revenue increase 1.5times hen it is false & if revenue increase 3 times then it is true.

D says (0.40kx-0.20x)/0.20x > (0.60kx-0.80x)/0.80x
2k-1 > 3/4k-1

Since k >1 we can say D is TRUE.
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by GMATGuruNY » Sat Jun 25, 2011 3:11 am
chaitanya.mehrotra wrote:In 1984, network television commercials accounted for 80% of all network and non-network television advertising revenue. In 2004, that figure was 60%. During that same period, operating cost for the networks remained steady, and in 2004 every major network announced record setting profits.

The information above, if true, supports which of the following conclusions?

A) Between 1984 and 2004, the number of homes with access to non-network television channels increased by more than 20%.
B) Teenagers comprise a growing proportion of television viewers, and teenagers prefer to watch non-network television shows.
C) The amount of advertising revenue earned from non-network television commercials in 2004 was greater than the amount of revenue earned by network television commercials in 1984.
D) Between 1984 and 2004, advertising revenue earned from non-network television commercials grew at a faster rate than revenue earned from network television commercials.
E) Soon revenue from non-network television commercials will surpass revenue from network television commercials.

I could not make out what the argument is all about ? Can somebody pls explain the approach to this questions ?

OA D
Use process of elimination.
The correct answer MUST BE TRUE; it must be supported by the very limited information given in the passage.

The passage is only about revenue. Eliminate A and B, which discuss topics other than revenue.

Answer choice E makes a prediction; the limited information in the passage does not predict what is going to happen in the future. Eliminate E.

Answer choice C discusses the amount of revenue. The passage discusses only percentages; no information is offered about the amounts of revenue generated in 1984 and 2004. Eliminate C.

The correct answer is D.

According to the passage:
1984: Non-network commercials = 20% of advertising revenue, Network commercials = 80%.
2004: Non-network commercials = 40% of advertising revenue, Network commercials = 60%.
These figures support answer choice D: Between 1984 and 2004, advertising revenue earned from non-network television commercials grew at a faster rate than revenue earned from network television commercials.
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by chaitanya.mehrotra » Sat Jun 25, 2011 4:47 am
Thanks @ GMAT Guru
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by chaitanya.mehrotra » Sat Jun 25, 2011 4:48 am
Vikram this question is from Manhattan CR Book
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by vikram4689 » Sat Jun 25, 2011 4:56 am
@GMATGuruNY: Just wanted to confirm if i can ALWAYS use this & confidently eliminate options such as C. I struck me with the same reasoning you mentioned but i was bit hesitant.
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by GMATGuruNY » Sat Jun 25, 2011 3:19 pm
vikram4689 wrote:@GMATGuruNY: Just wanted to confirm if i can ALWAYS use this & confidently eliminate options such as C. I struck me with the same reasoning you mentioned but i was bit hesitant.
Answer choice C: The amount of advertising revenue earned from non-network television commercials in 2004 was greater than the amount of revenue earned by network television commercials in 1984.

Information in passage:
2004: Non-network = 40% of total revenue.
1984: Network = 80% of total revenue.
Without knowing the total revenue in each year, we can't determine which of the values above is greater.
Thus, answer choice C is not supported.

An increase in a percentage is not necessarily an increase in the actual amount. If the passage discusses percentages and an answer choice discusses amounts -- or vice versa -- be wary.
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