Hi anksm22,
This is a Combination Formula question with a twist and the "math" behind it can be done in a couple of different ways. Here's an approach that will allow you to focus on one car at a time:
We're told that there are 2 models of car and 4 colors that the cars can come in. This essentially means that there are 8 different cars available.
We're asked for the total number of combinations of 3 cars with DIFFERENT COLORS.
1st Car: Can be any of the 8 possible cars. Once that car is chosen, you must remove that color from the remaining options.
2nd Car: With the first color removed, there are now 6 possible cars. Once the second car is chosen, you must remove that second color from the remaining options.
3rd Car: With the first 2 colors removed, there are now 4 possible cars.
(8)(6)(4) = 192
We're not done though. Since we were asked for possible Combinations, the order of the cars does not matter, so we have to remove the duplicate entries.
If we call our 3 cars X, Y and Z, there are actually 6 different ways that those 3 cars could have been chosen:
XYZ
XZY
YXZ
YZX
ZXY
ZYX
We are NOT allowed to count this combination 6 times; we're only allowed to count it once. Thus, we must take our prior total and divide by 6:
192/6 = 32
Final Answer: B
GMAT assassins aren't born, they're made,
Rich