What is THE correct answer? : Quant Question Archive [LOCKED]
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# What is THE correct answer?

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Intern
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06 Apr 2006, 07:25
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

Hi

In The Princeton Review I found an "upper-medium" problem:

The output of a factory was increased by 10% to keep up with rising demand. To handle the holiday rush, this new output was increased by 20%. By approimately what percent would the output now have to be decreased in order to restore the original output?

A) 20%
B) 24%
C) 30%
D) 32%
E) 70%

The correct answer for this problem is written to be B) 24%

I Cannot understand why. I think its 32%.
Manager
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06 Apr 2006, 07:37
Well, you've correctly deduced that during the holiday season, they've increased to 132% of production. However, getting back down is not as simple subtracting 32%. In fact, you must find the rate of change, which can be found by (132-100)/132 = 32/132 = 24%. So you'd need to decrease current production by 24% to get back to 100%.
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06 Apr 2006, 07:55
Quote:
So you'd need to decrease current production by 24% to get back to 100%.

Now it's clear. Thank you very much!
Manager
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06 Apr 2006, 07:56
i agree with above ... good solution.

i pluged in numbers ... if th original rate is 100 after first increase its 110 after the second is 132 now the final eq becomes 132- (132 * X) = 100 .. if you solve x is 23.68 or 24
Senior Manager
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06 Apr 2006, 11:53
B.

LET ORIGINAL BE 100, then 100->110->132

24% of 132 is approx 32, 132-24% =100
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06 Apr 2006, 12:22
Can you guys tell me how you got 132?
06 Apr 2006, 12:22
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