GMAT Question of the Day (July 1)

Math

A. 1.0
B. 1.7
C. 2.0
D. 2.4
E. 3.0

Question Discussion & Explanation
Correct Answer - C - (click and drag your mouse to see the answer)

Verbal

Studio executives carefully examine how a film performs on its opening weekend in order to determine whether – and how – to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven’t substantially reduced the average marketing cost for films.

C) A film’s prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime.

Question Discussion & Explanation

Correct Answer - A - (click and drag your mouse to see the answer)

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