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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] New post 15 Jul 2013, 02:46
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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, 06:56, edited 1 time in total.
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Re: Box office receipts for independent movies for the first [#permalink] New post 15 Jul 2013, 09:48
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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 [#permalink] New post 15 Jul 2013, 03:52
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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...

hope i made it clear.
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Re: Box office receipts for independent movies for the first [#permalink] New post 19 Oct 2013, 01:09
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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.

ANALYZE EACH ANSWER:

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 [#permalink] New post 15 Jul 2013, 03:00
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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Re: Box office receipts [#permalink] New post 15 Jul 2013, 03:28
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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Re: Box office receipts [#permalink] New post 15 Jul 2013, 04:03
Hi thanks again. Your answer is definitely helpful.
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Re: Box office receipts for independent movies for the first [#permalink] New post 31 Oct 2013, 02:38
Are we are expected to know what is a "box office receipt" and how it is related to revenue?

-1 for the question. :cry:
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Re: Box office receipts for independent movies for the first   [#permalink] 31 Oct 2013, 02:38
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