Find all School-related info fast with the new School-Specific MBA Forum

It is currently 29 Apr 2016, 20:22
GMAT Club Tests


GMAT 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.

for You

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

Your Progress

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


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.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar


  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Joined: 11 Aug 2012
Posts: 128
Schools: HBS '16, Stanford '16
Followers: 1

Kudos [?]: 71 [0], given: 16

Benefits [#permalink]

Show Tags

New post 31 May 2013, 13:14
Check the graphic below.

I agree with the OA. However, I don't understand a part of the OE:
In the explanation of the OA for the 2nd column, the OE mentions this:
"An employee would receive the lump-sum bonus on the birth of his/her first child only once. By comparison, the expected number of times an employee would receive the 10% raise - the benefit with the next highest instance cost - is 2 times in a 20-year career....)

Can someone explain the part highlighted in red?


[Reveal] Spoiler:
Column 1: A; Column 2: D


IIR00831.png [ 589.21 KiB | Viewed 854 times ]

Status: Training
Joined: 03 Jun 2013
Posts: 90
Location: Canada
GPA: 3.7
Followers: 3

Kudos [?]: 90 [0], given: 3

GMAT ToolKit User Reviews Badge
Re: Benefits [#permalink]

Show Tags

New post 08 Jun 2013, 21:54

They're just applying some probability to the logic.

If every year, 10% of employees are chosen for a raise, then an employee in any given year has a 1/10 chance of getting the raise.

So, in 20 years, an employee's number of raises would take on an expected value of 1/10 * 20 = 2; i.e, "2 times in a 20 year career".

Hope that clarifies.

KUDOS please if my post was useful!

Joined: 19 May 2012
Posts: 36
Location: India
Concentration: International Business, Healthcare
GMAT Date: 03-03-2014
WE: Information Technology (Computer Software)
Followers: 1

Kudos [?]: 7 [0], given: 0

Re: Benefits [#permalink]

Show Tags

New post 08 Aug 2013, 20:16
Lowest F/C ratio means F must be less than C.
Option D will occur with very minimum frequency hence D is the correct option.

GMATPrep 1 710/Q49/V38
GMATPrep 2 690/Q49/V34
Veritas Prep 700/Q50/V36/IR5
MGMT Test 1 700/Q51/V35/IR3

Re: Benefits   [#permalink] 08 Aug 2013, 20:16
Display posts from previous: Sort by


  Question banks Downloads My Bookmarks Reviews Important topics  

GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.