In a certain industry, production index x is directly

VJesus12 wrote:In a certain industry, production index x is directly proportional to the square of efficiency index y, and indirectly proportional to investment index z. If a business in this industry halves its investment index, which of the following is closest to the percent change in the business’s efficiency index required to keep the production index the same?

(A) 100% increase
(B) 50% increase
(C) 30% increase
(D) 30% decrease
(E) 50% decrease

“Production index x is directly proportional to the square of efficiency index y, and indirectly proportional to investment index z” means x = k * y^2/z for some positive value k.

Now we are given that z becomes z/2 and we can let y become ty for some positive value t. So we have x = k * (ty)^2/(z/2). Since we are keeping x the same and recall that x = k * y^2/z, so we have:

k * y^2/z = k * (ty)^2/(z/2)

y^2/z = t^2 * y^2 * 2/z

1 = t^2 * 2

1/2 = t^2

t = √(1/2) ≈ 0.7

Thus we see that the efficiency index y has to become 0.7y, or a 30% decrease, in order to keep the production index x the same.

Answer: D