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

It is currently 03 Aug 2015, 19:39
GMAT Club Tests

Close

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.

Customized
for You

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

Track
Your Progress

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

Practice
Pays

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

Headline inflation may have moderated but it appears there

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Intern
Intern
User avatar
Joined: 01 Dec 2012
Posts: 39
Location: India
WE: Project Management (Retail)
Followers: 0

Kudos [?]: 21 [1] , given: 10

Headline inflation may have moderated but it appears there [#permalink] New post 12 Mar 2013, 06:11
1
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

69% (03:03) correct 31% (02:08) wrong based on 84 sessions
Headline inflation may have moderated but it appears there is no respite for consumer, in daily life. Inflation in food articles is nearing double digits at 9.7% for the week ended October 4, more than double the 4.6% it had touched in the week ended August 30. There is a huge refuge in data choice as prices of food articles are up as well, 2.5% over this period. The wholesale price index, meanwhile, has dropped from 12.3% to 11% over the period.
Which of the following, if true, could help in explaining this anomaly?

a. The wholesale price of fruits is up nearly 20% for the week ended October 4 over the corresponding week last year.

b. Food articles are given only a low weightage in the wholesale price index.

c. In the case of consumer price index for rural labourers and agricultural workers, food has a high weightage of over 65% in the index.

d. The rising prices is part seasonal and part because of the recent rains that destroyed large quantities of fruits and vegetables.

e. Whatever the rate of inflation, people cannot do without essential food items.
[Reveal] Spoiler: OA
Manager
Manager
avatar
Joined: 10 Mar 2013
Posts: 136
Followers: 2

Kudos [?]: 41 [0], given: 3

Premium Member
Re: Headline inflation may have moderated but it appears there i [#permalink] New post 12 Mar 2013, 06:29
if B : Food articles are given only a low weightage in the wholesale price index. then we may have a situation when Inflation in food articles is nearing double digits at 9.7% but whole sale price index has dropped

what is the source ? reading this line was difficult :There is a huge refuge in data choice as prices of food articles are up as well, 2.5% over this period
Intern
Intern
User avatar
Joined: 01 Dec 2012
Posts: 39
Location: India
WE: Project Management (Retail)
Followers: 0

Kudos [?]: 21 [0], given: 10

Re: Headline inflation may have moderated but it appears there i [#permalink] New post 12 Mar 2013, 06:32
[quote="neha24"what is the source ? reading this line was difficult :There is a huge refuge in data choice as prices of food articles are up as well, 2.5% over this period[/quote]

Source - TIME LR series. I encountered the same and so posted this question here to get a good explaination.
Manager
Manager
avatar
Joined: 10 Mar 2013
Posts: 136
Followers: 2

Kudos [?]: 41 [0], given: 3

Premium Member
Re: Headline inflation may have moderated but it appears there i [#permalink] New post 12 Mar 2013, 06:51
i am not sure what time LR series is but i feel that i feel B is pretty satisfactory in explaining the noted fact .
also i find that D is written in a very non gmat way:The rising prices is part seasonal and part because of

as for B ; if some parameter has less of a contribution into some index then we will get a scope to explain as why that index will be rising is showing good trend (i am not going into the details ) when the some of its parameter are showing a negative trends
take an example of weighted average : in a group of boys the average weight will get less affected if some light weighted boys are moved into or outside of the group than when some heavy weighted boys are moved in or out .this is coz weighted affect of heavy weighted boys is considerably more
Re: Headline inflation may have moderated but it appears there i   [#permalink] 12 Mar 2013, 06:51
    Similar topics Author Replies Last post
Similar
Topics:
5 Mathematician: Recently, Zubin Ghosh made headlines when he was recogn dominicraj 2 08 Jun 2015, 23:53
6 Experts publish their posts in the topic I have found moderate success with the 3+2 rule while ivinayak 4 14 Jul 2012, 20:53
Inflation is an economic phenomenon resulting from the Trouper 6 22 Jul 2011, 22:04
7 Baking for winter holidays is tradition that may have a kolla 13 12 Oct 2009, 03:18
Prediction, the hallmark of natural sciences, appears to rampuria 9 02 Oct 2008, 06:16
Display posts from previous: Sort by

Headline inflation may have moderated but it appears there

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| 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®.