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profit

Expert replies
by sogmat » Sun Apr 26, 2009 8:49 am
the profit of a company changed from what % from 2002 to 2003

a-the profit for 2001 was 20 and for 2003 was 30
b-the increase in profit from 2001 to 2002 was same as increase in profit from 2002 to 2003

OA - B
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Source: — Data Sufficiency |

by vittalgmat » Sun Apr 26, 2009 5:48 pm
A tough GMAT DS question generally has 1 stmt easy and one stmt tough.
Here the tough one is stmt2 and I am not sure of the answer.


stmt1:
we dont know about profit in 2002. So N/S

Stmt2.
This states that the increase in profit from 2001 to 2002 = increase in profit from 2002 to 2003.

But we still cant tell what the increase exactly is.
so IMO N/S.

Consider them together.

Let x = profit for 2001
y = profit for 2002
z = profit for 2003.

From 2 we have,
z -y = y -x
substitute x and y

30 - y = y - 20

solving, y = 25.

From this we can find out the exact increase.

So C.

I am not sure of the answer though. So I will wait for other's opinions.
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by m&m » Mon Apr 27, 2009 5:37 am
Question asks about the change in profit from one year to the next. The change in profit in year 2002 is the increase/decrease from 2001. The change in profit in 2003 is the increase/decrease from 2002 to 2003. So We are asked to find the change in % from one year to next - so the change of "the change".

so formulaically we are asked:

let x = (2002-2001)/2001
let y = (2003-2002)/2002

and % change is (y-x)/x

in 1 we do not know 2001 so we don't know x. INSUFF

in 2 we are told that y-x = 0.... so 0/x = 0 so SUFF

Ans is B
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by Sher1 » Mon Apr 27, 2009 11:05 am
Not sure I understand the solution
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by shibal » Mon Apr 27, 2009 11:45 am
Sher1 wrote:Not sure I understand the solution
neither did I...

IMO:C
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Re: profit

by Vemuri » Mon Apr 27, 2009 4:43 pm
Statement 2: Not knowing anything about the increase in profit from 2001 to 2002, we cannot determine the %profit change from 2002-2003. According to me, this statement alone is not sufficient.

What is the source of this question. More than tricky I think the answer is impossible :-)
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by Ian Stewart » Mon Apr 27, 2009 6:52 pm
I don't find the question "the profit of a company changed from what % from 2002 to 2003 " to be meaningful English. When something 'changes from x to y', and you ask what it 'changed from', then you're asking for the value of x. Applied to this question, it's asking for the company's percent profit in 2002, something we clearly don't have enough information to find.

So taking the question literally, that's how I read it - that's a different interpretation from both of the interpretations used in responses above. I'm absolutely certain that my reading is not the interpretation intended by the question designer, but without knowing what the question means, it's obviously pretty difficult to answer - it's really a game of 'guess the intention of the question designer' rather than a math problem. If the wording in the original post is the same as in the original source, I'd suggest working from better-written materials.
For online GMAT math tutoring, or to buy my higher-level Quant books and problem sets, contact me at ianstewartgmat at gmail.com

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by vittalgmat » Mon Apr 27, 2009 7:02 pm
Thanks a lot Ian,
I thought I was the only one unable to understand the question properly.
I thought I was overly focused on SC.
Good that I got the clarification from the expert.

rgds
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