GMAT Question of the Day (Sep 24): Statistics and Critical Reasoning

By - Sep 24, 02:00 AM Comments [0]

Math (PS)

Which set(s) has the greatest standard deviation?

1. Set 1 consisting of 10 digits
2. Set 2 consisting of 10 first positive consecutive even numbers
3. Set 3 consisting of 10 first primes

(A) set 1
(B) set 2
(C) set 3
(D) set 1 and 2
(E) set 1, 2, and 3

Question Discussion & Explanation

Correct Answer - C - (click and drag your mouse to see the answer)

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Verbal (CR)

Federal regulations require that corporations use separate accounting firms for audit and non-audit services. This presents difficulties for many multi-national companies because there are only four large international accounting firms based in the United States. An outspoken group of CEOs has suggested breaking up the “Big Four” firms into smaller operations, so that corporations will have more options for their accounting needs.

Which of the following stipulations would be most helpful in assuring the success of the CEOs’ plan to provide more variety in accounting services by breaking up the Big Four firms?

(A) The firms should maintain their multi-national contacts.
(B) CEOs for the new companies should be chosen from inside each firm.
(C) Corporations must keep the same firm for their audit services, but should choose a new firm for non-audit needs.
(D) The new firms should maintain their internal audit procedures.
(E) The Big Four firms should divide so that the audit and non-audit sections are not broken up.

Question Discussion & Explanation
Correct Answer - E - (click and drag your mouse to see the answer)

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