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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## Last year, the average price of eight different products tagged by: M7MBA ##### This topic has 2 expert replies and 0 member replies ### Top Member ## Last year, the average price of eight different products ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult Last year, the average price of eight different products sold by Company X was$245. What is the average price of those same eight products this year?

(1) For 5 of the 8 products, the price is 10% higher this year than last.

(2) For 3 of the products, the price remained unchanged.

OA=E

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M7MBA wrote:
Last year, the average price of eight different products sold by Company X was $245. What is the average price of those same eight products this year? (1) For 5 of the 8 products, the price is 10% higher this year than last. (2) For 3 of the products, the price remained unchanged We can determine this year's average price if we know the difference between this year's revenue and last year's. Statements combined: Case 1: Last year the 5 products in Statement 1 had an average price of$10, for a total of $50 in revenue In this case, the increase in revenue yielded by this year's 10% price increase = 10% of 50 = 5. Case 2; Last year the 5 products in Statement 1 had an average price of$20, for a total of $100 in revenue In this case, the increase in revenue yielded by this year's 10% price increase = 10% of 100 = 10. Since the increase in revenue can be different values, the two statements combined are INSUFFICIENT. The correct answer is E. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. ### GMAT/MBA Expert GMAT Instructor Joined 02 Jun 2008 Posted: 2475 messages Followed by: 351 members Upvotes: 1090 GMAT Score: 780 The answer is instantly C or E, because using either statement alone, we don't know anything about some of the products. Using both Statements, it's possible, say, that five of the products cost$0.10 each, and the other three cost more than $600 each. If the five cheap products increased in price by 10%, so by$0.01, that would have almost no effect on the average price of all of the products. But it's possible that five of the products cost nearly $400 each, and three of them cost$0.01 each, and then if the five products increased by 10%, so by nearly $40 each, the average price of all of the products could have increased by nearly$40. That is, with no information about how expensive the two groups of products are, there's no way to work out precisely how the overall average changed, and the answer is E.

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