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Trade Deficit of Private Vehicles and Commercial Vans

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by BarryLi » Mon Feb 21, 2011 8:14 pm
Each year's increase or decrease in the trade deficit (merchandise imports greater than exports) is calculated in relation to the previous year's. In 1976, imports of private vehicles were 10 percent higher than in 1975, while imports of vehicles including commercial vans was 15 percent higher than in 1975. That 15 percent increase was one and a half times the increase recorded in 1975.

If the information above is accurate, which of the following must be true?

A) In 1976, the increase, if any, of commercial vehicle imports was smaller than the increase in imports of private vehicles.

B) In 1976, the increase, if any, of commercial vehicle imports was greater than the increase in imports of private vehicles.

C) In 1975, more commercial vehicles were imported than private vehicles.

D) In 1975, more private vehicles were imported than commercial vehicles.

E) The average number of private vehicles imported in 1975 declined.
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Source: — Critical Reasoning |

by manpsingh87 » Mon Feb 21, 2011 9:02 pm
BarryLi wrote:Each year's increase or decrease in the trade deficit (merchandise imports greater than exports) is calculated in relation to the previous year's. In 1976, imports of private vehicles were 10 percent higher than in 1975, while imports of vehicles including commercial vans was 15 percent higher than in 1975. That 15 percent increase was one and a half times the increase recorded in 1975.

If the information above is accurate, which of the following must be true?

A) In 1976, the increase, if any, of commercial vehicle imports was smaller than the increase in imports of private vehicles.

B) In 1976, the increase, if any, of commercial vehicle imports was greater than the increase in imports of private vehicles.

C) In 1975, more commercial vehicles were imported than private vehicles.

D) In 1975, more private vehicles were imported than commercial vehicles.

E) The average number of private vehicles imported in 1975 declined.
well it seems more like a math problem to me for me answer is B, please tell the source of this question.
O Excellence... my search for you is on... you can be far.. but not beyond my reach!
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by BarryLi » Mon Feb 21, 2011 9:09 pm
The question comes from Barron's Pass Key to the GMAT, 4th edition.

It is located in Sample Test 1 - Section VII - Question 20 (page 178 for this edition).
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by AIM GMAT » Tue Feb 22, 2011 2:44 am
Yeah 1 more for B .

Whats the OA ?
Thanks & Regards,
AIM GMAT
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by BarryLi » Tue Feb 22, 2011 2:57 am
The OA (original answer?) is A.

I cannot for the life of me interpret their explanation; I will type it verbatim below.
First, the increase in imports of both types of vehicles was one and a half times greater in 1976 than in 1975. That means that there was a 10 percent increase in the import of both types of vehicles in 1975. Likewise, if the increase for 1976 of private vehicles was 10 percent, then the increase in 1975 was 6.7 percent. Therefore, the different in import increases for both types of vehicles between 1975 and 1976 is 5 percent and for private vehicles, 3.3 percent. The relative increase in both types of vehicles was 5 percent, including the relative increase in private vehicles of 3.3 percent. Therefore, the residual, relative increase in commercial vehicles was 5 percent - 3.3 percent, or 1.7 percent, less than the increase in private ones. The correct answer is (A)

Please do not dwell on trying to understand this. There are other answers from this book which I have recently found to be equally as confusing, in a bad way. The book is "Barron's Pass Key to the GMAT", 4th edition.
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by AIM GMAT » Tue Feb 22, 2011 3:03 am
Thanks for providing the explanation , yeah u are right its pretty confusing , frankly didnt read it after 2 lines :) .
What was ur take for answer ?
Thanks & Regards,
AIM GMAT
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by BarryLi » Tue Feb 22, 2011 3:12 am
I also thought it was B.
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by cyrwr1 » Wed Feb 23, 2011 2:38 pm
Can i have more explanations for this one?
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