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# Box office receipts for independent movies for the first

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Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 03:46
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Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

If the statements above are true, which of the following must be true?

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
3. The price of a movie ticket has not increased since last year.
4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
[Reveal] Spoiler: OA

Last edited by Narenn on 15 Jul 2013, 07:56, edited 1 time in total.
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15 Jul 2013, 04:00
arichinna wrote:
Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

If the statements above are true, which of the following must be true?

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
3. The price of a movie ticket has not increased since last year.
4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.

hi,

let say :

total movies released last year(TMRLY)=50(given)
total receipts last year(TRLY)=50(assuming)

average receipt per movie= 50/50=1

now according to question
total movies released this year= 20(given)==>uptil first half of the year
total receipts this year= 20percent more than TRLY=50+10=60

average receipt permovie=60/20=3

therefore last year for every movie there is 1 receipt
and this year for every movie there is 3 receipt

hence clearly average revenue generated will be more this year than last year.

same is stated in option D

4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.==>CORRECT

JUST you have to understand that more the receipt more the revenue...

hope it helps
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15 Jul 2013, 04:28
Thank you Shailesh for the reply. I did a similar analysis like you did but I had come across one query which made me post this question.

In the answer choice D - "The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year", there is an implicit underlying assumption.

Revenue is a function of price and quantity. This choice assumes that the price is the same as compared to last year. No where in the question, it talks about price of the receipt being the same.

There is also one answer choice which talks about price (though that choice is wrong).

As per your calculation, even if the average receipt per movie increased to 3 in the first half of the present year, this choice will not hold true if the price had come down to one-third or less than that of what it was last year.

I might be wrong or missed out on a logical link but if you have any suggestions/comments, it would help.

Thanks,
Ari
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15 Jul 2013, 04:52
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arichinna wrote:
Thank you Shailesh for the reply. I did a similar analysis like you did but I had come across one query which made me post this question.

In the answer choice D - "The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year", there is an implicit underlying assumption.

Revenue is a function of price and quantity. This choice assumes that the price is the same as compared to last year. No where in the question, it talks about price of the receipt being the same.

There is also one answer choice which talks about price (though that choice is wrong).

As per your calculation, even if the average receipt per movie increased to 3 in the first half of the present year, this choice will not hold true if the price had come down to one-third or less than that of what it was last year.

I might be wrong or missed out on a logical link but if you have any suggestions/comments, it would help.

Thanks,
Ari

Hi ARI,
thats logical..you are thinking absolutely right....but actually the problem is understanding the meaning of RECEIPTS.

when the word "receipts" is used in this sort of context, it refers to the total revenue generated by the movies. in other words, this use of "receipts" is exactly the same as "gross revenue".===>It is not like ticket ....that will add up to give whole revenue.

if i say 50 receipts....means total revenue was 50

you can google out for the meaning of RECEIPTS.

NOW 50 dollar is revenue for last year..
and 60 dollar is for this year...

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15 Jul 2013, 05:03
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Re: Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 10:48
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Taking the above fact in both the cases.
Case1: price increased-> revenue goes up.
Case2: price remained constant-> again revenue goes up.

So in either of the cases the revenue is going up. So D should be the correct option.
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Re: Box office receipts for independent movies for the first [#permalink]

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19 Oct 2013, 02:09
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ANALYZE THE STIMULUS:

Fact: Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year.
Fact: Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released.
Fact: The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

Question: If the statements above are true, which of the following must be true? <== This is MUST BE TRUE question, so NO "new" information accepted.

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
Wrong. TEMPTING. We just know data of the FIRST half of this year. What if total receipt in the first half is more than 20%, but will decrease significantly in the second half? ==> We can't say total receipts this year will be significantly 20% greater than that of last year. A can't be answer.

2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
Wrong. Absolutely wrong, we don't know how many films were released in the first half of last year.

3. The price of a movie ticket has not increased since last year.
Wrong. Nothing about the price. Out of scope.

4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
Correct. Assume prices do not change significantly. In the first half, total receipts is 20% more than that of total last year. But the number of film released is fewer (20 vs. 50) ==> Clearly, average revenue of each film in the first half of this year is greater than that of film released last year.

5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
Wrong. Nothing about number of people. Out of scope.

Hope it helps
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Re: Box office receipts for independent movies for the first [#permalink]

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31 Oct 2013, 03:38
Are we are expected to know what is a "box office receipt" and how it is related to revenue?

-1 for the question.
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Re: Box office receipts for independent movies for the first [#permalink]

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31 Jan 2015, 12:28
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Re: Box office receipts for independent movies for the first [#permalink]

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09 Apr 2016, 19:29
arichinna wrote:
Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

If the statements above are true, which of the following must be true?

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
3. The price of a movie ticket has not increased since last year.
4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.

20movies in first half made more money than 50movies last year.
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Re: Box office receipts for independent movies for the first [#permalink]

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10 Apr 2016, 02:38
I think the question here is flawed! Please consider the following :-

1. If "receipts" means money, then the answer would consider revenue.
2. If "receipts" means the number of ticket receipts/invoices found, then the answer would consider people.
3. If "receipts" means the total number of invoices, then those receipts will be both of the tickets bought and the food bought, from which you cannot conclude anything!
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Re: Box office receipts for independent movies for the first [#permalink]

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22 Jul 2016, 11:01
There is a total ambiguity on the word "Receipt" and which I feel is being understood based on situation and geography. Does GMAT produce such questions with confused words?
This questions is a flawed one as I believe otherwise please help how to handle such situation.

Becauase here D/E can be answers based on how one understands about the word "Receipt"
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Re: Box office receipts for independent movies for the first [#permalink]

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22 Jul 2016, 13:50
ShashankDave wrote:
I think the question here is flawed! Please consider the following :-

1. If "receipts" means money, then the answer would consider revenue.
2. If "receipts" means the number of ticket receipts/invoices found, then the answer would consider people.
3. If "receipts" means the total number of invoices, then those receipts will be both of the tickets bought and the food bought, from which you cannot conclude anything!

ravikrishna1979 wrote:
There is a total ambiguity on the word "Receipt" and which I feel is being understood based on situation and geography. Does GMAT produce such questions with confused words?
This questions is a flawed one as I believe otherwise please help how to handle such situation.

Becauase here D/E can be answers based on how one understands about the word "Receipt"

1. Box office means ticket counter where movie tickets are sold. Box offices receive money by selling movie tickets; they do not receive invoices by selling tickets.
2. Box office receipt is not same as movie-viewer receipt (ShashankDave your point no. 2). Movie-viewer receipt could be tickets, though it is a very odd term for the purpose.
3. Food stalls are not box offices (ShashankDave your point no. 3).

The usage of "receipt" is not ambiguous in this context - box office receipt clearly implies the money received by selling tickets.
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Re: Box office receipts for independent movies for the first [#permalink]

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07 Sep 2016, 21:28
The text tells us that the revenues for independent movies for the first have of this year are already greater than the total revenues for independent movies for all of last year.

A - There is no way to predict box-office receipts for the year.
D - The average revenue per film = total revenues ÷ number of films. Correct
C - We cannot infer that the price of a movie ticket has not increased.
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Box office receipts for independent movies for the first [#permalink]

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17 Sep 2016, 11:57
sayantanc2k wrote:
ShashankDave wrote:
I think the question here is flawed! Please consider the following :-

1. If "receipts" means money, then the answer would consider revenue.
2. If "receipts" means the number of ticket receipts/invoices found, then the answer would consider people.
3. If "receipts" means the total number of invoices, then those receipts will be both of the tickets bought and the food bought, from which you cannot conclude anything!

ravikrishna1979 wrote:
There is a total ambiguity on the word "Receipt" and which I feel is being understood based on situation and geography. Does GMAT produce such questions with confused words?
This questions is a flawed one as I believe otherwise please help how to handle such situation.

Becauase here D/E can be answers based on how one understands about the word "Receipt"

1. Box office means ticket counter where movie tickets are sold. Box offices receive money by selling movie tickets; they do not receive invoices by selling tickets.
2. Box office receipt is not same as movie-viewer receipt (ShashankDave your point no. 2). Movie-viewer receipt could be tickets, though it is a very odd term for the purpose.
3. Food stalls are not box offices (ShashankDave your point no. 3).

The usage of "receipt" is not ambiguous in this context - box office receipt clearly implies the money received by selling tickets.

Last year box office receipt rate was $5 and this year, because of X reason it has dropped and is current placed at$1 per receipt. Still you believe, D holds good... Need an expert advice.
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Re: Box office receipts for independent movies for the first [#permalink]

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17 Sep 2016, 23:58
gandhigauravz wrote:
sayantanc2k wrote:
ShashankDave wrote:
I think the question here is flawed! Please consider the following :-

1. If "receipts" means money, then the answer would consider revenue.
2. If "receipts" means the number of ticket receipts/invoices found, then the answer would consider people.
3. If "receipts" means the total number of invoices, then those receipts will be both of the tickets bought and the food bought, from which you cannot conclude anything!

ravikrishna1979 wrote:
There is a total ambiguity on the word "Receipt" and which I feel is being understood based on situation and geography. Does GMAT produce such questions with confused words?
This questions is a flawed one as I believe otherwise please help how to handle such situation.

Becauase here D/E can be answers based on how one understands about the word "Receipt"

1. Box office means ticket counter where movie tickets are sold. Box offices receive money by selling movie tickets; they do not receive invoices by selling tickets.
2. Box office receipt is not same as movie-viewer receipt (ShashankDave your point no. 2). Movie-viewer receipt could be tickets, though it is a very odd term for the purpose.
3. Food stalls are not box offices (ShashankDave your point no. 3).

The usage of "receipt" is not ambiguous in this context - box office receipt clearly implies the money received by selling tickets.

Last year box office receipt rate was $5 and this year, because of X reason it has dropped and is current placed at$1 per receipt. Still you believe, D holds good... Need an expert advice.

Two things here :
1. We are given that 1st half of the year has 20% greater receipts. Hence, we are concerned only with the 1st half of this year. So, your point for the whole year is invalid.
2. If we are given that this year in the first half, it is greater, we cannot deny the fact and we have to answer accordingly. So, D is the BEST answer as per the premises given.
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Re: Box office receipts for independent movies for the first [#permalink]

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18 Sep 2016, 02:32
gandhigauravz wrote:
sayantanc2k wrote:
ShashankDave wrote:
I think the question here is flawed! Please consider the following :-

1. If "receipts" means money, then the answer would consider revenue.
2. If "receipts" means the number of ticket receipts/invoices found, then the answer would consider people.
3. If "receipts" means the total number of invoices, then those receipts will be both of the tickets bought and the food bought, from which you cannot conclude anything!

ravikrishna1979 wrote:
There is a total ambiguity on the word "Receipt" and which I feel is being understood based on situation and geography. Does GMAT produce such questions with confused words?
This questions is a flawed one as I believe otherwise please help how to handle such situation.

Becauase here D/E can be answers based on how one understands about the word "Receipt"

1. Box office means ticket counter where movie tickets are sold. Box offices receive money by selling movie tickets; they do not receive invoices by selling tickets.
2. Box office receipt is not same as movie-viewer receipt (ShashankDave your point no. 2). Movie-viewer receipt could be tickets, though it is a very odd term for the purpose.
3. Food stalls are not box offices (ShashankDave your point no. 3).

The usage of "receipt" is not ambiguous in this context - box office receipt clearly implies the money received by selling tickets.

Last year box office receipt rate was $5 and this year, because of X reason it has dropped and is current placed at$1 per receipt. Still you believe, D holds good... Need an expert advice.

The rate or the number of tickets sold does not matter at all. Following is the argument structure for this question:

Premise: X is 20% more than Y.
Conclusion: X is greater than Y

(Yes, it is so straight-forward.)

First line of the passage is the premise and option D is the conclusion - "receipt" and "revenues" are synonymous.
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Re: Box office receipts for independent movies for the first [#permalink]

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14 Oct 2016, 05:11
pqhai wrote:
ANALYZE THE STIMULUS:

Fact: Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year.
Fact: Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released.
Fact: The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

Question: If the statements above are true, which of the following must be true? <== This is MUST BE TRUE question, so NO "new" information accepted.

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
Wrong. TEMPTING. We just know data of the FIRST half of this year. What if total receipt in the first half is more than 20%, but will decrease significantly in the second half? ==> We can't say total receipts this year will be significantly 20% greater than that of last year. A can't be answer.

2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
Wrong. Absolutely wrong, we don't know how many films were released in the first half of last year.

3. The price of a movie ticket has not increased since last year.
Wrong. Nothing about the price. Out of scope.

4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
Correct. Assume prices do not change significantly. In the first half, total receipts is 20% more than that of total last year. But the number of film released is fewer (20 vs. 50) ==> Clearly, average revenue of each film in the first half of this year is greater than that of film released last year.

5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
Wrong. Nothing about number of people. Out of scope.

Hope it helps

Why we should assume that price is constant, we are not bound to assume. Answer D must b wrong therefore. Moreover if you assume that then C is also correct. From my opinion A should be correct. E may b wrong because same person might come multiple times and have multiple receipts. So A is final answer.
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Box office receipts for independent movies for the first [#permalink]

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15 Oct 2016, 09:17
afarrukh786 wrote:
pqhai wrote:
ANALYZE THE STIMULUS:

Fact: Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year.
Fact: Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released.
Fact: The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

Question: If the statements above are true, which of the following must be true? <== This is MUST BE TRUE question, so NO "new" information accepted.

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
Wrong. TEMPTING. We just know data of the FIRST half of this year. What if total receipt in the first half is more than 20%, but will decrease significantly in the second half? ==> We can't say total receipts this year will be significantly 20% greater than that of last year. A can't be answer.

2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
Wrong. Absolutely wrong, we don't know how many films were released in the first half of last year.

3. The price of a movie ticket has not increased since last year.
Wrong. Nothing about the price. Out of scope.

4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
Correct. Assume prices do not change significantly. In the first half, total receipts is 20% more than that of total last year. But the number of film released is fewer (20 vs. 50) ==> Clearly, average revenue of each film in the first half of this year is greater than that of film released last year.

5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
Wrong. Nothing about number of people. Out of scope.

Hope it helps

Why we should assume that price is constant, we are not bound to assume. Answer D must b wrong therefore. Moreover if you assume that then C is also correct. From my opinion A should be correct. E may b wrong because same person might come multiple times and have multiple receipts. So A is final answer.

box-office-receipts-for-independent-movies-for-the-first-156008.html#p1736699

Answer D is one of the most straight forward conclusions you can draw - no assumptions are required whatsoever.

If the total of elements in set X is more than the total of elements in set Y, then the average of the elements in set X is also greater than the average of the elements on set Y ( because it is already given that the no. of elements in set X is less than the number of elements in set Y). Here set X = set of independent movies this year and Y = set of independent movies last year.

Option A is incorrect because nothing has been mentioned about the sales in the rest of the year - there could be no more receipt from independent movies at all.
Box office receipts for independent movies for the first   [#permalink] 15 Oct 2016, 09:17
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