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13 Oct 2019, 23:04
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Yesterday's closing prices of 2,420 different stocks listed on a certain stock exchange were all different from today's closing prices. The number of stocks that closed at a higher price today than yesterday was 20 percent greater than the number that closed at a lower price. How many of the stocks closed at a higher price today than yesterday?
(A) 484
(B) 726
(C) 1,100
(D) 1,320
(E) 1,694
Hi team
Could anyone break down this problem for me, please? I looked at other solutions on the GMAT club but they didn't resolve my doubt.
For some reason, I am misinterpreting this phrase: The number of stocks that closed at a higher price today than yesterday was 20 percent greater than the number that closed at a lower price.
Let, X (no of stocks that closed at a higher price today), Z (no of stocks that closed at a lower price today) and Y ( no of stocks that closed at a higher price yesterday).
X - Y = 1.20 (Z) Isn't this the difference between X and Y and not the total number of stocks that closed at a higher price today because of the word "Than".
But for most of the solutions that I have seen they have taken it as the total number of stocks that closed at a higher price today which gives the following equation:
1.20 (Z) + Z = 2420
???
Dablu
(A) 484
(B) 726
(C) 1,100
(D) 1,320
(E) 1,694
Hi team
Could anyone break down this problem for me, please? I looked at other solutions on the GMAT club but they didn't resolve my doubt.
For some reason, I am misinterpreting this phrase: The number of stocks that closed at a higher price today than yesterday was 20 percent greater than the number that closed at a lower price.
Let, X (no of stocks that closed at a higher price today), Z (no of stocks that closed at a lower price today) and Y ( no of stocks that closed at a higher price yesterday).
X - Y = 1.20 (Z) Isn't this the difference between X and Y and not the total number of stocks that closed at a higher price today because of the word "Than".
But for most of the solutions that I have seen they have taken it as the total number of stocks that closed at a higher price today which gives the following equation:
1.20 (Z) + Z = 2420
???
Dablu
23 Oct 2019, 00:56
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gurudabl
Hello Dablu,
You seem to have created unnecessary confusion for yourself by bringing in an additional variable Z. You only require 2 variables:
X which represents the number of stocks that closed at a higher price today than yesterday AND
Y which represents the number of stocks that closed at a lower price today than yesterday.
X and Y are complements of each other, don't you think so?
Because there are two unknowns, we know that we will need two INDEPENDENT equations to solve for unique values of x and y. Do we have 2 independent equations??? I think so.
X + Y = 2420 since the number of stocks have not changed (only their prices have).
X = \(\frac{6}{5}\) Y since the number of stocks that closed today at a higher price than yesterday is 20% more THAN those that closed at a lower price. You need to understand that you are comparing stocks which have closed TODAY, you can't compare a stock that closed today with a stock that closed yesterday. That doesn't make sense and there isn't enough data to do that too.
Solving the two equations given above, we get Y as 1100 and X as 1320. X represents the number of stocks that closed at a higher price today than yesterday. Therefore, the correct answer has to be D.
Hope that clears your confusion!
Thanks,
Arvind.
23 Oct 2019, 01:47
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Thank you for your reply ArvindCrackVerbal.
This,
The question just says,
Anyways thanks!
This,
Quote:
, cleared my confusion.
The question just says,
Quote:
I misinterpreted the info.
Anyways thanks!
