Sector income

LulaBrazilia wrote:

The table above represents the combined net income of all United States companies in each of five sectors for the second quarter of 1996. Which sector had the greatest net income during the first quarter of 1996?

A) Basic Materials
B) Energy
C) Industrial
D) Utilities
E) Conglomerates

The great thing about most (all) GMAT math questions is that they won't have answer choices so close together that they require you to perform tedious calculations to determine which one is correct. This question is no exception.

Let's check each one.
A) Basic Materials
2nd Quarter = $4.83 (billion)
Percent change from 1st quarter = -26%

Recognize that IF the 1st quarter income were $6, and IF the percent change were -25%, then the 2nd quarter income would be $4.5
Instead, 2nd quarter income is $4.83, which means the 1st quarter income must be GREATER than $6
That's as precise as we need to be here.

B) Energy
2nd Quarter = $7.46 (billion)
Percent change from 1st quarter = 40%

Recognize that IF the 1st quarter income were $5, then the 2nd quarter income would be $7
Instead, 2nd quarter income is $7.46, which means the 1st quarter income must be a LITTLE BIT GREATER than $5

C) Industrial
2nd Quarter = $5 (billion)
Percent change from 1st quarter = -1%

From this, we can see that the 1st quarter income must be a LITTLE BIT GREATER than $5

D) Utilities
2nd Quarter = $8.57 (billion)
Percent change from 1st quarter = +303%

Recognize that IF the 1st quarter income were $2, and IF the percent change were +300%, then the 2nd quarter income would be $8
Instead, 2nd quarter income is $8.57, which means the 1st quarter income must be A LITTLE BIT GREATER than $2

E) Conglomerates
2nd Quarter = $2.07 (billion)
Percent change from 1st quarter = +10%

From this, we can see that the 1st quarter income must be LESS THAN $2

Answer: A

Cheers,
Brent