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Source-OG-2nd Edition-Question 85

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Source-OG-2nd Edition-Question 85

by shanice » Sun Aug 05, 2012 7:51 pm
Last year in a group of 30 businesses, 21 reported a net profit and 15 had investments in foreign markets.How many of the businesses did not report a net profit nor invest in foreign markets last year?

(1)Last year 12 out of the businesses reported a net profit and had investments in foreign markets.
(2)Last year 24 of the 30 businesses reported a net profit or invested in foreign markets, or both.

A)Statement (1) alone is sufficient, but statement (2) alone is not sufficient.
B)Statement (2) alone is sufficient, but statement (1) alone is not sufficient.
C)Both statements together are sufficient,but neither statement alone is sufficient.
D)Each statement alone is sufficient.
E)Statement (1) and (2) together are not sufficient.

Answer is D.

Thank you, guys.
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Source: — Data Sufficiency |

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by Anurag@Gurome » Sun Aug 05, 2012 8:38 pm
shanice wrote:Last year in a group of 30 businesses, 21 reported a net profit and 15 had investments in foreign markets.How many of the businesses did not report a net profit nor invest in foreign markets last year?

(1)Last year 12 out of the businesses reported a net profit and had investments in foreign markets.
(2)Last year 24 of the 30 businesses reported a net profit or invested in foreign markets, or both.

A)Statement (1) alone is sufficient, but statement (2) alone is not sufficient.
B)Statement (2) alone is sufficient, but statement (1) alone is not sufficient.
C)Both statements together are sufficient,but neither statement alone is sufficient.
D)Each statement alone is sufficient.
E)Statement (1) and (2) together are not sufficient.

Answer is D.

Thank you, guys.

Total = Profit + Investment - Both + Neither
30 = 21 + 15 - Both + Neither
Neither = Both - 6
We have to find neither.

(1) Last year 12 of the 30 businesses reported a net profit and had investments in foreign markets implies both = 12
Neither = Both - 6 = 12 - 6 = 6; SUFFICIENT.

(2) Last year 24 of the 30 businesses reported a net profit or invested in foreign markets, or both Profit + Investment - Both = 24
21 + 15 - Both = 24
Both = 12
Neither = Both - 6 = 12 - 6 = 6; SUFFICIENT.

The correct answer is D.
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by Brent@GMATPrepNow » Sat Nov 16, 2019 9:16 am
shanice wrote:Last year in a group of 30 businesses, 21 reported a net profit and 15 had investments in foreign markets.How many of the businesses did not report a net profit nor invest in foreign markets last year?

(1)Last year 12 out of the businesses reported a net profit and had investments in foreign markets.
(2)Last year 24 of the 30 businesses reported a net profit or invested in foreign markets, or both.
The Double Matrix Method can be used for most questions featuring a population in which each member has two characteristics associated with it.
Here, we have a population of businesses, and the two characteristics are:
- had a net profit or didn't have a net profit
- invested in foreign markets or didn't invest in foreign markets

So, we can set up our diagram as follows:
Image

Now, if there are 30 businesses and 21 reported a net profit, then 9 did NOT report a net profit.
Similarly, if there are 30 businesses and 15 had investments in foreign markets, then 15 did NOT have investments in foreign markets. So, we can add that information to the diagram.
Image
Note: I placed a star in the bottom right box to remind me that this is the value we are trying to determine.

Statement 1: Last year 12 of the 30 businesses reported a net profit and had investments in foreign markets.
When we add this information to our diagram, we get the following:
Image

Since we know the sums of the rows and columns, we can determine the values in every box to get the following:
Image
Notice that we can determine the value for the bottom right box, which means we can answer the target question with certainty.
So, statement 1 is SUFFICIENT

Statement 2: last year 24 of the 30 businesses reported a net profit or invested in foreign markets, or both.
The three shaded boxes below represent the businesses that reported a net profit or invested in foreign markets, or both.
Image

Since all 4 boxes must add to 30, we can see last remaining box must contain the 6 remaining businesses.
Image
So, we can determine the value for the bottom right box, which means statement 2 is SUFFICIENT

Answer: D

This question type is VERY COMMON on the GMAT, so be sure to master the technique.

To learn more about the Double Matrix Method, watch this video: https://www.gmatprepnow.com/module/gmat- ... ems?id=919

Once you're familiar with this technique, you can attempt these additional practice questions:

Easy Problem Solving questions
- https://www.beatthegmat.com/finance-majo ... 67425.html

Medium Problem Solving questions
- https://www.gmatprepnow.com/module/gmat- ... /video/920
- https://www.beatthegmat.com/posted-speed ... 72374.html
- https://www.beatthegmat.com/motel-t271938.html
- https://www.beatthegmat.com/of-the-appli ... 70255.html
- https://www.beatthegmat.com/opening-nigh ... 64869.html
- https://www.beatthegmat.com/at-least-100 ... 74669.html
- https://www.beatthegmat.com/prblem-solving-t279424.html

Difficult Problem Solving questions
- https://www.gmatprepnow.com/module/gmat- ... /video/946
- https://www.beatthegmat.com/ratio-problem-t268339.html
- https://www.beatthegmat.com/overlapping- ... 65223.html
- https://www.beatthegmat.com/fractions-t264254.html
- https://www.beatthegmat.com/overlapping- ... 64092.html
- https://www.beatthegmat.com/mba/2011/05/ ... question-2

Easy Data Sufficiency questions
- https://www.gmatprepnow.com/module/gmat- ... /video/943
- https://www.beatthegmat.com/for-what-per ... 70596.html
- https://www.beatthegmat.com/ds-quest-t187706.html

Medium Data Sufficiency questions
- https://www.beatthegmat.com/sets-matrix-ds-t271914.html
- https://www.beatthegmat.com/each-of-peop ... 71375.html
- https://www.beatthegmat.com/a-manufacturer-t270331.html
- https://www.beatthegmat.com/in-costume-f ... 69355.html
- https://www.beatthegmat.com/mba/2011/05/ ... question-1

Difficult Data Sufficiency questions
- https://youtu.be/dsCeqF9Kbk8
- https://www.beatthegmat.com/double-set-m ... 71423.html
- https://youtu.be/dOZ9KM1m5Hs
- https://www.beatthegmat.com/sets-t269449.html
- https://www.beatthegmat.com/mba/2011/05/ ... question-3

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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