Hi Everyone
I am confused as to how this question was tackled .. why are they dividing the Block rate by the lowest rate in host hotel?
What I did rather was multiplied the Block rate * 0.25.. which would total their reimbursement.. and compared that to the lowest rate in host hotel.
If lowest rate was higher than reimbursement then the answer would be no.
Help!
Duaa
IR question 2 from the OG online questions
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- Duaabasheer
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Am I mistaken in thinking we need to know what the ROB strategy is in order to answer this question?
-t
-t
Tommy Wallach, Company Expert
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Hey There,
I checked the other question you posted, which clears up what they're talking about. I think you're misunderstanding the process they used here. Instead of calculating the 25% right away, they took a look at what the difference was between the two prices. If the two are close enough together, then the 25% reimbursement is clearly going to be enough to cover the difference. This saves time, because you don't need to actually calculate the 25%.
For the final one, because the ratio is .64, we know immediately that a 25% reimbursement will NOT cover the difference (they would be exactly the same at .75).
Does that make more sense?
-t
I checked the other question you posted, which clears up what they're talking about. I think you're misunderstanding the process they used here. Instead of calculating the 25% right away, they took a look at what the difference was between the two prices. If the two are close enough together, then the 25% reimbursement is clearly going to be enough to cover the difference. This saves time, because you don't need to actually calculate the 25%.
For the final one, because the ratio is .64, we know immediately that a 25% reimbursement will NOT cover the difference (they would be exactly the same at .75).
Does that make more sense?
-t
Tommy Wallach, Company Expert
ManhattanGMAT
If you found this posting mega-helpful, feel free to thank and/or follow me!
ManhattanGMAT
If you found this posting mega-helpful, feel free to thank and/or follow me!