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Let's break down E with an example to illustrate how it explains both Fact I (equal acceptance rates within categories) and Fact II (overall higher acceptance rate for domestic films).

Hypothetical Scenario:
Imagine the Barbizon Film Festival has only 2 categories:

Category A (a less prestigious category with higher acceptance rates)
Category B (a more prestigious category with lower acceptance rates)
Now, consider the following distribution of films:

Submissions:
Category A:
100 domestic films
10 foreign films
Category B:
20 domestic films
50 foreign films
Acceptance Rates Within Each Category (Fact I):
Let’s say the acceptance rate in both categories is 50% for both domestic and foreign films:

In Category A, 50 domestic films and 5 foreign films are accepted.
In Category B, 10 domestic films and 25 foreign films are accepted.
Result:
Category A:

Domestic: 50 out of 100 accepted (50%)
Foreign: 5 out of 10 accepted (50%)
Category B:

Domestic: 10 out of 20 accepted (50%)
Foreign: 25 out of 50 accepted (50%)
Within each category, the acceptance rates are identical for domestic and foreign films, fulfilling Fact I.

Overall Acceptance Rates (Fact II):
Total domestic films submitted = 100 (Category A) + 20 (Category B) = 120

Total foreign films submitted = 10 (Category A) + 50 (Category B) = 60

Total domestic films accepted = 50 (Category A) + 10 (Category B) = 60

Total foreign films accepted = 5 (Category A) + 25 (Category B) = 30

Overall acceptance rate for domestic films = 60/120 = 50%

Overall acceptance rate for foreign films = 30/60 = 50%

Here, the number of domestic films submitted to the less competitive Category A (with a higher acceptance rate) is significantly larger, while most foreign films were submitted to Category B (more prestigious, with lower chances of acceptance due to more competition).

As a result:

Fact I is true: The acceptance rates are equal within each category.
Fact II is also true: The overall acceptance rate is higher for domestic films, because more domestic films were submitted to less competitive categories.
Conclusion:
Option E shows that foreign films were disproportionately submitted to more competitive categories (like Category B in this example), explaining why the overall acceptance rate is lower for foreign films, even though within each category, the acceptance rates are identical.
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GMATNinja ChiranjeevSingh

Let's say we have two categories , in first category domestic films are 20 and foreign films are 20 and accepted films are 5 for each so rate of acceptance will be 25 percent ,

Now in Second category we have 30 domestic films and 20 foreign films , but here 15 films of domestic are accepted and 10 films of foreign are accepted , so rate of acceptance is 50 percent.

Now considering both the facts being true here we see fact 1 satisfying and also now for fact 2 as well satisfying . so then overall Domestic films will be 20/50 vs Foreign films will be 15/40 . so , its giving us a clear indication that "Significantly more domestic films were created more than foreign films" so can you find out the fallacy in my explanation ? Why is B not correct
In your example, the overall acceptance rate for domestic films is 40%, and the overall acceptance rate for foreign films is 37.5% -- that's hardly a SIGNIFICANT difference, so it does not satisfy Fact II.

Similarly, the number of domestic films submitted in your example (50) is not significantly more than the number of foreign films (40).

If we remove the word "significantly" from Fact II and from choice (B), your example would be applicable. But as written, (E) is a much better choice.

For more on choice (B), check out this post: https://gmatclub.com/forum/background-information-this-year-each-film-submitted-to-the-barbizon-65599-20.html#p3224110.
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This is a very high-quality question and I agree with the solution

I got it wrong, and I initially said D without fully justifying my answer. He makes the most sense now, though once you consider the fact that the foreign entries may not even have entered into the other categories, however, I sort of missed this at the beginning because if they have to be equal then doesn’t that sort of imply that Both the domestic and the international are submitting to each category

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E also here.

A) The judges have no relevance here.
B) The number of films is irrelevant b/c the argument specifically talks about rates of acceptance.
C) Past acceptance rates have nothing to do with this year’s acceptance rates
D) This doesn’t explain the apparent contradiction. We are told the acceptance rate in each category does happen to be equal for both foreign and domestic.
E) This makes sense. Imagine the following scenario:

Category: 1 2 3 4 5 6 7 8 9 10
Foreign: 5% 5% N/A N/A N/A N/A N/A N/A N/A N/A
Domestic: 5% 5% 20% 20% 20% 20% 20% 20% 20% 20%

In the above scenario, both statements can be true. Within each category where foreign and domestic films were submitted, the acceptance rate is the same (Fact 1). However, imagine that no foreign films were submitted for categories 3 – 10 and domestic films were submitted across all categories. The overall acceptance rate of domestic films would be higher (Fact 2).


Hi Topher, can you please help me understand how the first statement is fulfilled with the NA’s? If the foreign films are NA’s and they have no submission how can it possibly be that the acceptance rate would be equal?

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Passage Analysis

Background information: This year, each film submitted to the Barbizon Film Festival was submitted in one of ten categories. For each category, there was a panel that decided which submitted films to accept.

There are 10 categories and each film submitted is in one of these categories, so a film cannot be in two categories or none of these 10 categories. And there was a panel for each category that decided which of the submitted films to accept and which ones to reject. This is the background we have.

Fact I: Within each category, the rate of acceptance for domestic films was the same as that for foreign films.

This fact says that within each category, the rate of acceptance is the same for domestic and foreign films.

What is the rate of acceptance? It is the number of accepted divided by the total number of submitted.

For domestic films, it would be the number of domestic films accepted divided by the number of domestic films submitted.

Similarly, for foreign films, it would be the number of foreign films accepted divided by the number of foreign films submitted.

We are given that the rate of acceptance is the same for foreign and domestic films within each category.

Fact II: The overall rate of acceptance of domestic films was significantly higher than that of foreign films.

This fact says that the overall rate of acceptance of domestic films was substantially higher than the rate of acceptance for foreign films.

What I observe at this stage is that a lot of people read the two facts and then move on to the question stem. This is not how I read any text or this particular question. Immediately after reading Fact II, I take a pause to understand what is happening. Saying that within each category, the rate of acceptance is the same for foreign and domestic films, then how could Fact II be true that the overall acceptance rate of domestic films is higher?

Even without being aware of what the question is asking, I would take this pause. Now, the length of this pause can be shorter if I am looking at this question in the actual exam, but I would take a pause even during the actual exam. During practice, I would take a long enough pause to really do my best to make sense of how these two facts fit together. This is how I read any piece of text. I make sense of it, and then I move on to reading something else. I don't keep moving on without making sense of what I've already read.

Given that I have been following this process of trying to make sense of everything that I come across for a long period of time, for many years, when I take a pause to understand how these two facts fit together, I get the understanding within 15 to 30 seconds. In my mind, I would just think that it's a case of weighted average.

For the benefit of the reader, I would expand on what is going on in my mind. Within each of the categories, the acceptance rate is the same. To reduce the complexity, let's say there are only two categories: one with an acceptance rate of 10% and let's say another with an acceptance rate of 50%.

Let's imagine that domestic filmmakers are very savvy. They mostly submit their films to categories that are easier to get into, like the one with the 50% acceptance rate. Let's say 100 domestic films are submitted to the 50% acceptance rate category. That means 50 of them are accepted. And let's say only 10 domestic films are submitted to the tougher category with the 10% acceptance rate. So, only 1 of those is accepted.

So for domestic films, what's the overall picture? A total of 110 domestic films were submitted (100 + 10), and a total of 51 were accepted (50 + 1). The overall acceptance rate for domestic films is 51/110, which is about 46%.

Now let's consider the foreign films. Let's say the opposite happens. Foreign filmmakers mostly submit their work to the most prestigious, and therefore toughest, categories. So, 100 foreign films are submitted to the category with the 10% acceptance rate. That means 10 are accepted. And only 10 foreign films are submitted to the easier category with the 50% acceptance rate, so 5 of those are accepted.

For foreign films, the total number submitted is also 110 (100 + 10), but the total number accepted is only 15 (10 + 5). The overall acceptance rate for foreign films is 15/110, which is about 13.6%.

So now we see how it works. The overall rate for domestic films (46%) is "significantly higher" than the overall rate for foreign films (13.6%), even though within each category, the acceptance rate was exactly the same for both groups. The paradox is resolved by the distribution of the films. Domestic films were disproportionately submitted to categories with high acceptance rates, while foreign films were disproportionately submitted to categories with low acceptance rates. This difference in submission patterns skews the overall weighted average.

Deconstructing the Question

In light of the background information, which of the following, if true can account for fact I and fact II both being true of the submissions to this year's Barbizon Film Festival?

So we are looking for an option that can account for these two facts to be true at the same time. We have to take the option to be true, so it's a resolve the paradox question. The paradox is between the first and the second fact, and in this case, we have already figured out a way to resolve the paradox as we tried to understand the two facts.

Options Evaluation

(A) In each category, the selection panel was composed of filmmakers, and some selection panels included no foreign filmmakers.

Incorrect. This option tells us that the selection panel was made up of filmmakers and then there were some selection panels that had no foreign filmmakers. What is the relevance of this? Well, if a selection panel has no foreign filmmakers, that would mean that it has only domestic filmmakers. Such selection panels might accept domestic films much more likely than foreign films.

However, that assumes that filmmakers are biased towards their own countries, which is not general knowledge. Secondly, and more importantly, we are already given that the acceptance rate within each category is the same. So, irrespective of the composition of the panels, the acceptance rate is the same. This option is completely irrelevant.

(B) Significantly more domestic films than foreign films were submitted to the festival.

Incorrect. This option is extremely popular; about 75% of the people who get this question wrong select this option. Let's first try to understand why people would think that this option is correct and what is the problem with that thinking.

One very superficial way of accepting this option would be to say that, well, there are more domestic films, so more of them would be accepted. So yeah, that makes sense; that makes both facts true. But this logic is wrong because Fact II is not saying that more domestic films are accepted; it is saying that the acceptance rate is higher for domestic films. How do you calculate the acceptance rate? You divide the number of films accepted by the number of films submitted. So if you have more submitted and more accepted, the acceptance rate could remain the same. The mere number of films cannot explain a higher acceptance rate.

The second kind of reasoning that leads people to incorrectly select this option is that they create a number example that seems to work, but they do so by unintentionally changing another factor. Let's understand this.

They start with the answer choice: Significantly more domestic films are submitted. They also correctly set up the scenario from the passage: two categories with different acceptance rates, where the rate within each category is the same for domestic and foreign films.

The Flawed Example People Build

A person trying to prove this answer choice correct might construct an example like this:

  • Category A (High Prestige): 10% acceptance rate
  • Category B (Low Prestige): 50% acceptance rate
  • Total Submissions: 200 Domestic Films, 100 Foreign Films (This matches the answer choice)

Now, to make the numbers work out, they unconsciously distribute the films unevenly, like so:

Category A (10% Rate): 50 domestic films submitted, 5 accepted (10%); 80 foreign films submitted, 8 accepted (10%)

Category B (50% Rate): 150 domestic films submitted, 75 accepted (50%); 20 foreign films submitted, 10 accepted (50%)

Total: 200 domestic films submitted, 80 accepted; 100 foreign films submitted, 18 accepted

Based on this, they calculate the overall rates:

  • Domestic Overall Rate: 80 accepted / 200 submitted = 40%
  • Foreign Overall Rate: 18 accepted / 100 submitted = 18%

They look at this result and think, "Aha! The domestic rate (40%) is significantly higher. The example works, so the answer choice must be correct."

Exposing the Flaw

The logic is flawed because the difference in the overall rate was not caused by the total number of films submitted. It was caused by the hidden change they introduced: the different proportions in which the films were distributed.

  • 75% of domestic films (150 out of 200) were submitted to the easy Category B.
  • 80% of foreign films (80 out of 100) were submitted to the tough Category A.

To prove that the total number of films is irrelevant, let's keep the totals the same (200 domestic, 100 foreign) but distribute them in the same proportions. Let's say 50% of all films go to Category A and 50% go to Category B.

Category A (10% Rate): 100 domestic films submitted, 10 accepted (10%); 50 foreign films submitted, 5 accepted (10%)

Category B (50% Rate): 100 domestic films submitted, 50 accepted (50%); 50 foreign films submitted, 25 accepted (50%)

Total: 200 domestic films submitted, 60 accepted; 100 foreign films submitted, 30 accepted

Now, let's calculate the overall rates again:

  • Domestic Overall Rate: 60 accepted / 200 submitted = 30%
  • Foreign Overall Rate: 30 accepted / 100 submitted = 30%

As you can see, when the distribution pattern is the same, the overall acceptance rates are identical, even though there are twice as many domestic films. This proves that the number of films submitted has no effect on the overall rate. The factor that actually resolves the paradox is the uneven distribution of films across categories of varying difficulty—which is precisely what the correct answer choice addresses.

(C) In each of the past three years, the overall acceptance rate was higher for foreign than for domestic films, an outcome that had upset some domestic filmmakers.

Incorrect. This option also seems to convey a reason why there could be a bias against foreign films. But, given that the acceptance rate within each category is the same, this does not make sense. There is no bias there. So this option is irrelevant.

(D) The number of films to be selected in each category was predetermined, but in no category was it required that the acceptance rate of foreign films should equal that of domestic films.

Incorrect. This option says that the number of films to be selected in each category was fixed. For example, it was already decided that in Category One, there will be, let's say, 100 films accepted. But it wasn't required that the acceptance rate for foreign and domestic films be the same.

Now, even though this was not required, we know from the given facts that the acceptance rate for these two categories of films—foreign and domestic—turned out to be the same. So the second part of this option is completely irrelevant. The first part is also not relevant because whether the number of films to be selected was fixed or variable has no impact on our paradox.

(E) Most foreign films, unlike most domestic films, were submitted in categories with high prestige, but with correspondingly low rates of acceptance.

Correct. This option says that most foreign films were submitted in categories with high prestige and low rates of acceptance. So, the majority of the foreign films were submitted in categories with lower rates of acceptance. The option also says that this is unlike most domestic films, which means that most domestic films were not submitted in categories with low rates of acceptance.

So we have a case in which most foreign films were submitted in categories with lower rates of acceptance, whereas most domestic films were submitted in categories with high rates of acceptance. In that case, we have a reason why the overall acceptance rate for domestic films would be higher. This option gives us a reason for Fact I and Fact II to be correct at the same time. This is the correct option.
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