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

It is currently 23 Oct 2014, 07:21

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

Rumored declines in automobile-industry revenues are

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
User avatar
Joined: 29 Aug 2003
Posts: 246
Location: MI
Followers: 1

Kudos [?]: 2 [0], given: 0

Rumored declines in automobile-industry revenues are [#permalink] New post 26 Dec 2003, 07:30
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

50% (00:00) correct 50% (25:50) wrong based on 2 sessions
Rumored declines in automobile-industry revenues are exaggerated. It is true that automobile manufactures' share of the industry's revenues fell from 65 percent two years ago to 50 percent today, but over the same period suppliers of automobile parts had their share increase from 15 percent to 20 percent and service companies (for example, distributors, dealers, and repairs) had their share increase from 20 percent to 30 percent.

Which one of the following best indicates why the statistics given above provide by themselves no evidence for the conclusion they are intended to support?

(A) The possibility is left open that the statistics for manufactures' share of revenues come from a different source than the other statistics.

(B) No matter what changes the automobile industry's overall revenues undergo, the total of all shares of these revenues must be 100 percent.

(C) No explanation is given for why the revenue shares of different sectors of the industry changed

(D) Manufactures and parts companies depend for their revenue on dealers' success in selling cars.

(E) Revenues are an important factor but are not the only factor in determining profits.
Director
Director
User avatar
Joined: 13 Nov 2003
Posts: 971
Location: Florida
Followers: 1

Kudos [?]: 22 [0], given: 0

 [#permalink] New post 26 Dec 2003, 07:50
corelation needs to be establised between the respective sources.

will go with A
Manager
Manager
User avatar
Joined: 29 Aug 2003
Posts: 246
Location: MI
Followers: 1

Kudos [?]: 2 [0], given: 0

 [#permalink] New post 26 Dec 2003, 14:25
:no not A, not D
SVP
SVP
User avatar
Joined: 30 Oct 2003
Posts: 1798
Location: NewJersey USA
Followers: 4

Kudos [?]: 36 [0], given: 0

 [#permalink] New post 26 Dec 2003, 18:50
B is the answer.
Add up the first set of percentages and then add up the second set of percentages. They add upto 100% There is actually no change in the percentage of the revenue. However total revenue might be less or more because we dont know how much each subsector in the auto industry generated.
SVP
SVP
User avatar
Joined: 30 Oct 2003
Posts: 1798
Location: NewJersey USA
Followers: 4

Kudos [?]: 36 [0], given: 0

 [#permalink] New post 20 Jan 2004, 05:49
Sandeep what is the answer to this Q?
Manager
Manager
User avatar
Joined: 29 Aug 2003
Posts: 246
Location: MI
Followers: 1

Kudos [?]: 2 [0], given: 0

 [#permalink] New post 20 Jan 2004, 07:15
The answer is indeed B.

Your explanation was perfect, hence I must have overlooked to post the answer.
  [#permalink] 20 Jan 2004, 07:15
    Similar topics Author Replies Last post
Similar
Topics:
3 Experts publish their posts in the topic Declining revenues resulting from a decrease in business devashish 20 25 Oct 2010, 20:01
Experts publish their posts in the topic Declining revenues resulting from a decrease in business noboru 3 25 Oct 2009, 14:14
1 Rumored declines in automobile-industry revenues are Vavali 8 29 Mar 2008, 13:42
1 Rumored declines in automobile-industry revenues are Fistail 12 24 Aug 2007, 10:50
It was the loss of revenue from declines in tourism that in brazzavie 22 14 Feb 2005, 03:10
Display posts from previous: Sort by

Rumored declines in automobile-industry revenues are

  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®.