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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
Here is my take on it.

It is probably wrong but, guys let me know what you think

20 < x < 40 (depending on initial shares of A and B profits)
1 < y < 20

if A is big then x and y are closer to 20, if B - x is closer to 40 and y is closer to 1

now, x - y > 0 so C and D are out

B is also out since x-y clearly can be greater than 2

E is fishy since it offers a constant relationship first, and x - y is clearly can be different from 1

A is left.
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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
0<x-y<2 for me

take some examples and let's say the companies A and B began with the same amount : 100

91 total profit (X): (100*1.2+100*1.4) / 100+100 = 260/200= 30%
92 total profit (Y): 120*1.2+140*1.01) / 120+140 = 277.4/260= 6%

means X = 0.3 and Y=0.06
only solution 2 is possible
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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
Hi Guys,

My answer is choice 1 i.e. x-y > 2

The way I will approach this problem is as follows.

Since this is a percentage question where we have no idea what A & B are we can safely assume A & B to be 100
1991 1992
A's increase 20 24 (20% of 120)

B's increase 40 1.4 (1% of 140)

Total x=60 y=25.4

Since x & y are percentages, we can divide the above by 100 to get the sum of percentage increase for each year.

Converting it x=0.60 y=0.254
to percentage

Therefore, x-y= 0.60 - 0.254=0.346 > 2. Hence x-y > 2. Hence choice 1 should be correct.
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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
pb_india wrote:
For company A, the amount profit earned in 1991 increased by 20 percent than the year before and in 1992 increased 20 percent than the year before. For company B, the profit of 1991 increased by 40 percent than 1990 and in 1992, increased by 1 percent than 1991.If x expressed the percentage the total profit of A and B increased in 1991 and y expressed the percentage the total profit of A and B increased in the 1992. Which of the following is the relation between x and y?

1. x-y>2 2. 0<x-y<2 3. 0<y-x<2 4. y-x>0 5. y-x = -1


PA91=1.2PA90, PA92=1.2PA91=1.44PA90
PB91=1.4PB90, PB92=1.01PB91=1.414PB90

x=(PA91+PB91-PA90-PB90)/(PA90+PB90)=(0.2PA90+0.4PB90)/(PA90+PB90)
0.2<x<0.4
y=(PA92+PB92-PA91-PB91)/(PA91+PB91)=(0.2PA91+0.01PB91)/(PA91+PB91)
0.2>y>0.01

0<x-y<0.39

I'd say 2 is right.
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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
I need a clarification. In standard English, when people say percentage does it mean 0.4 or 40 (%)?
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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
40 percent = 40%=0.4 :)
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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
Question seems fuzzy :-D , but I'll go with A.

Percentage, like in 40% ==> percentage is 40.
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Re: For company A, the amount profit earned in 1991 increased by [#permalink]
HongHu wrote:
pb_india wrote:
For company A, the amount profit earned in 1991 increased by 20 percent than the year before and in 1992 increased 20 percent than the year before. For company B, the profit of 1991 increased by 40 percent than 1990 and in 1992, increased by 1 percent than 1991.If x expressed the percentage the total profit of A and B increased in 1991 and y expressed the percentage the total profit of A and B increased in the 1992. Which of the following is the relation between x and y?

1. x-y>2 2. 00 5. y-x = -1


PA91=1.2PA90, PA92=1.2PA91=1.44PA90
PB91=1.4PB90, PB92=1.01PB91=1.414PB90

x=(PA91+PB91-PA90-PB90)/(PA90+PB90)=(0.2PA90+0.4PB90)/(PA90+PB90)
0.2y>0.01

0<x-y<0.39

I'd say 2 is right.


Awesome HongHu.

Though the maxima and minima of x and y are indeed correct. Just the means are sufficient to eliminate the rest and arrive at 2.

HMTG



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