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## IR question 2 from the OG online questions

This topic has 2 expert replies and 1 member reply
Duaabasheer Junior | Next Rank: 30 Posts
Joined
24 Aug 2010
Posted:
15 messages
Test Date:
November 28th , 2012
GMAT Score:
640

#### IR question 2 from the OG online questions

Fri Dec 14, 2012 3:30 am
Hi Everyone

I am confused as to how this question was tackled .. why are they dividing the Block rate by the lowest rate in host hotel?

What I did rather was multiplied the Block rate * 0.25.. which would total their reimbursement.. and compared that to the lowest rate in host hotel.

If lowest rate was higher than reimbursement then the answer would be no.

Help!

Duaa
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tanviet Legendary Member
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20 May 2008
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Thu Feb 07, 2013 11:45 pm
I can not see full screen shot. pls, post it again. Thank you

### GMAT/MBA Expert

Tommy Wallach GMAT Instructor
Joined
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Wed Jan 16, 2013 6:34 pm
Hey There,

I checked the other question you posted, which clears up what they're talking about. I think you're misunderstanding the process they used here. Instead of calculating the 25% right away, they took a look at what the difference was between the two prices. If the two are close enough together, then the 25% reimbursement is clearly going to be enough to cover the difference. This saves time, because you don't need to actually calculate the 25%.

For the final one, because the ratio is .64, we know immediately that a 25% reimbursement will NOT cover the difference (they would be exactly the same at .75).

Does that make more sense?

-t

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### GMAT/MBA Expert

Tommy Wallach GMAT Instructor
Joined
21 Jan 2010
Posted:
451 messages
Followed by:
114 members
188
Target GMAT Score:
800
GMAT Score:
770
Wed Jan 16, 2013 6:29 pm
Am I mistaken in thinking we need to know what the ROB strategy is in order to answer this question?

-t

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Tommy Wallach, Company Expert
ManhattanGMAT

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