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01 Oct 2019, 21:05
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B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
67% (02:03) correct
33%
(02:13)
wrong
based on 242
sessions
History
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Not Attempted Yet
At the beginning of a five-day trading week, the price of a certain stock was $10 per share. During the week, four of the five closing prices of the stock exceeded $10. Did the average closing price of the stock during the week exceed its price at the beginning of the week?
(1) The stock's closing price on Tuesday was the same as its closing price on Thursday.
(2) The sum of the stock's highest and lowest closing prices during the week was 20.
01 Oct 2019, 23:13
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At the beginning of a five-day trading week, the price of a certain stock was $10 per share. During the week, four of the five closing prices of the stock exceeded $10. Did the average closing price of the stock during the week exceed its price at the beginning of the week?
Average > 10?
Average > 10?
Attachment:
File comment: Trading Week
Trading week.JPG [ 66.1 KiB | Viewed 3109 times ]
Answer (B). Trading week.JPG [ 66.1 KiB | Viewed 3109 times ]
01 Oct 2019, 23:17
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Opening value of a share =$10, We are informed that 4 out of 5 closing prices for the week, x, were more than $10. We are to determine if the average closing price exceeds the stock price at the beginning of the week.
Statement 1, states that the closing price on Tuesday is the same as the closing price on Thursday.
We know from the question stem that 4 out of 5 days recorded prices that are higher than $10. So obviously, the prices on Tuesday and Thursday are higher than $10, and thats the only conclusion that can be drawn from statement 1. Aside that, it is possible that the price per share on Monday is greater than $10 in which case the answer will be Yes, or it closed less than $10 in which case the answer will be No. Statement 1 is insufficient.
Statement 2 states that Xmin + Xmax = 20. Is this enough to determine whether the price per share closed higher or lower at the start of the week (in this case Monday)? No. Hence statement 2 is not sufficient.
Statement 1 + 2 combined.
Tuesday and Thursday closed at prices more than $10 and Xmin + Xmax =20.
Is there a way to connect statement 2 with statement 1 in order to determine whether the closing price is less or greater than $10 on Monday? No. Hence both statements taken together is still not sufficient.
The answer is therefore E.
Statement 1, states that the closing price on Tuesday is the same as the closing price on Thursday.
We know from the question stem that 4 out of 5 days recorded prices that are higher than $10. So obviously, the prices on Tuesday and Thursday are higher than $10, and thats the only conclusion that can be drawn from statement 1. Aside that, it is possible that the price per share on Monday is greater than $10 in which case the answer will be Yes, or it closed less than $10 in which case the answer will be No. Statement 1 is insufficient.
Statement 2 states that Xmin + Xmax = 20. Is this enough to determine whether the price per share closed higher or lower at the start of the week (in this case Monday)? No. Hence statement 2 is not sufficient.
Statement 1 + 2 combined.
Tuesday and Thursday closed at prices more than $10 and Xmin + Xmax =20.
Is there a way to connect statement 2 with statement 1 in order to determine whether the closing price is less or greater than $10 on Monday? No. Hence both statements taken together is still not sufficient.
The answer is therefore E.
