Last visit was: 19 May 2024, 00:48 It is currently 19 May 2024, 00:48

Close

GRE Prep Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GRE score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
SORT BY:
Date
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2507
Own Kudos [?]: 3297 [2]
Given Kudos: 1051
GPA: 3.39
Send PM
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2507
Own Kudos [?]: 3297 [0]
Given Kudos: 1051
GPA: 3.39
Send PM
Intern
Intern
Joined: 07 Apr 2021
Posts: 39
Own Kudos [?]: 11 [1]
Given Kudos: 12
Send PM
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2507
Own Kudos [?]: 3297 [1]
Given Kudos: 1051
GPA: 3.39
Send PM
Re: In 1984, network television commercials accounted for 80% of all netwo [#permalink]
1
Expert Reply
ANALYZE THE STIMULUS:
Fact 1: In 1984, network television commercials accounted for 80% of all network and non-network television advertising revenue.
Fact 2: In 2004, that figure was 60%.
Fact 3: During that same period, operating cost for the networks remained steady,
Fact 4: In 2004 every major network announced record setting profits.

Question: The information above, if true, supports which of the following conclusions?

Pre-thinking:
- From fact 3: Costs remained;
- From fact 4: In 2004, Network TV had profits --> REVENUE - COST >= 0--> Revenue must be equal or greater than that in 1984. KEY. We don’t have to assume revenues will be equal or greater, this is the hidden fact.
- Clearly, revenue of Network TV increased (or stayed the same) but its percentage decreased compared to Non-network TV. Thus, non-network TV must grow at faster rate than network TV in terms of revenue.

ANALYZE EACH OPTION:

A) Between 1984 and 2004, the number of homes with access to non-network television channels increased by more than 20%.
Wrong. We can’t infer “20%”.

B) Teenagers comprise a growing proportion of television viewers, and teenagers prefer to watch non-network television shows.
Wrong. Teenagers are only a sub-group. It can't represent for the whole group.

C) The amount of advertising revenue earned from non-network television commercials in 2004 was greater than the amount of revenue earned by network television commercials in 1984.
Wrong. NOTE: we can’t convert from percentage to absolute value. This is a popular trap in GMAT. Larger percentage does not mean larger absolute value and vice versa.

D) Between 1984 and 2004, advertising revenue earned from non-network television commercials grew at a faster rate than revenue earned from network television commercials.
Correct. KEY is revenue of network TV increased but its percentage decrease, thus it must grow at slower rate than non-network TV did.

E) Soon revenue from non-network television commercials will surpass revenue from network television commercials.
Wrong. Can’t infer that.

Answer: D
Prep Club for GRE Bot
[#permalink]
Moderators:
GRE Instructor
218 posts
GRE Instructor
1034 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne