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# Box office receipts for independent movies for the first

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Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 03:46
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Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

If the statements above are true, which of the following must be true?

A. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year

B. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.

C. The price of a movie ticket has not increased since last year.

D. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.

E. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
[Reveal] Spoiler: OA

Last edited by nguyendinhtuong on 12 Jun 2017, 22:05, edited 2 times in total.
Reformatted question
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Re: Box office receipts for independent movies for the first [#permalink]

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19 Oct 2013, 02:09
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ANALYZE THE STIMULUS:

Fact: Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year.
Fact: Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released.
Fact: The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

Question: If the statements above are true, which of the following must be true? <== This is MUST BE TRUE question, so NO "new" information accepted.

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
Wrong. TEMPTING. We just know data of the FIRST half of this year. What if total receipt in the first half is more than 20%, but will decrease significantly in the second half? ==> We can't say total receipts this year will be significantly 20% greater than that of last year. A can't be answer.

2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
Wrong. Absolutely wrong, we don't know how many films were released in the first half of last year.

3. The price of a movie ticket has not increased since last year.
Wrong. Nothing about the price. Out of scope.

4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
Correct. Assume prices do not change significantly. In the first half, total receipts is 20% more than that of total last year. But the number of film released is fewer (20 vs. 50) ==> Clearly, average revenue of each film in the first half of this year is greater than that of film released last year.

5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.
Wrong. Nothing about number of people. Out of scope.

Hope it helps
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Re: Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 04:52
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arichinna wrote:
Thank you Shailesh for the reply. I did a similar analysis like you did but I had come across one query which made me post this question.

In the answer choice D - "The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year", there is an implicit underlying assumption.

Revenue is a function of price and quantity. This choice assumes that the price is the same as compared to last year. No where in the question, it talks about price of the receipt being the same.

There is also one answer choice which talks about price (though that choice is wrong).

As per your calculation, even if the average receipt per movie increased to 3 in the first half of the present year, this choice will not hold true if the price had come down to one-third or less than that of what it was last year.

I might be wrong or missed out on a logical link but if you have any suggestions/comments, it would help.

Thanks,
Ari

Hi ARI,
thats logical..you are thinking absolutely right....but actually the problem is understanding the meaning of RECEIPTS.

when the word "receipts" is used in this sort of context, it refers to the total revenue generated by the movies. in other words, this use of "receipts" is exactly the same as "gross revenue".===>It is not like ticket ....that will add up to give whole revenue.

if i say 50 receipts....means total revenue was 50

you can google out for the meaning of RECEIPTS.

NOW 50 dollar is revenue for last year..
and 60 dollar is for this year...

hope i made it clear.
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Re: Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 04:00
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arichinna wrote:
Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far.

If the statements above are true, which of the following must be true?

1. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year
2. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.
3. The price of a movie ticket has not increased since last year.
4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.
5. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.

hi,

let say :

total movies released last year(TMRLY)=50(given)
total receipts last year(TRLY)=50(assuming)

average receipt per movie= 50/50=1

now according to question
total movies released this year= 20(given)==>uptil first half of the year
total receipts this year= 20percent more than TRLY=50+10=60

average receipt permovie=60/20=3

therefore last year for every movie there is 1 receipt
and this year for every movie there is 3 receipt

hence clearly average revenue generated will be more this year than last year.

same is stated in option D

4. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.==>CORRECT

JUST you have to understand that more the receipt more the revenue...

hope it helps
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Re: Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 10:48
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Taking the above fact in both the cases.
Case1: price increased-> revenue goes up.
Case2: price remained constant-> again revenue goes up.

So in either of the cases the revenue is going up. So D should be the correct option.
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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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16 Feb 2015, 01:10
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4d wrote:
Can anybody explain why A is wrong

Dear 4d,

I'll try to explain it to you like this:
Total sales this year were 20% higher for the first half of the releases.

Is it possible to have no sales for the movies coming in the second half.
Yes

In that case would the total sales be significantly higher than 20% of total sales last year.
No

Does this option always hold to be true ?
No

The option we choose should always stay true in any drastic condition.

I hope it helps

P.S: Let me know if you find anything wrong in my reasoning.
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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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26 Feb 2015, 05:49
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Harley1980 wrote:
paandey wrote:

Hey,

It cannot be D since we cannot predict the revenue here as you don't know if the price of the receipts have been kept same or increased or decreased. Here the author talks about increased number of receipts which can only point to higher number of viewers. So it should be E.

Can any one clear the above reasoning. since we can not assume the price of the receipt, how D is correct?

In this case "receipts" means "total turnover", not "tickets".
So we have bigger turnover. But we don't know reasons of this effect: maybe more customers, maybe higher price per ticket.
But we know that turnover of last year already less than turnover of this year.
In D we see "average per movie" comparison, so D it's correct answer.

Quote:
Collins Cobuild vocabulary:
2) Receipts are the amount of money received during a particular period, for example by a shop or theatre.

Dear Cobuild,

Thanks for the much required clarification. But do you think such ambiguous question could actually be there during the actual exam ? Or was it just me for who the meaning of Receipts was not clear ?
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Re: Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 04:28
Thank you Shailesh for the reply. I did a similar analysis like you did but I had come across one query which made me post this question.

In the answer choice D - "The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year", there is an implicit underlying assumption.

Revenue is a function of price and quantity. This choice assumes that the price is the same as compared to last year. No where in the question, it talks about price of the receipt being the same.

There is also one answer choice which talks about price (though that choice is wrong).

As per your calculation, even if the average receipt per movie increased to 3 in the first half of the present year, this choice will not hold true if the price had come down to one-third or less than that of what it was last year.

I might be wrong or missed out on a logical link but if you have any suggestions/comments, it would help.

Thanks,
Ari
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Re: Box office receipts for independent movies for the first [#permalink]

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15 Jul 2013, 05:03
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Re: Box office receipts for independent movies for the first [#permalink]

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31 Oct 2013, 03:38
Are we are expected to know what is a "box office receipt" and how it is related to revenue?

-1 for the question.
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Re: Box office receipts for independent movies for the first [#permalink]

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31 Jan 2015, 12:28
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Inference Revision: Box office receipts for independent movies [#permalink]

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14 Feb 2015, 02:42
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Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far. If the statements above are true, which of the following must be true?

A. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year.

B. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.

C. The price of a movie ticket has not increased since last year.

D. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.

E. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.

[Reveal] Spoiler: OE
The text tells us that the revenues for independent movies for the first have of
this year are already greater than the total revenues for independent movies for
all of last year. We are then asked to draw a conclusion based on that
information.
(A) There is no way to predict box-office receipts for the year.
(B) There is no way to know how many movies were released in the first half of
last year.
(C) We cannot infer that the price of a movie ticket has not increased.
(D) CORRECT. The average revenue per film = total revenues ÷ number of films.
Revenues: We are told that the revenues for independent movies for the first half
of this year (say \$1000) are already greater than the total revenues for all of last
year (say \$999).
Number of Films: We know that more independent movies were released last
year (say 10) than in the first half of this year (say 9).
We can clearly see that the average revenues per film for independent movies in
the first half of this year (\$1000 ÷ 9) are greater than the average revenues for all
independent movies released last year (\$999 ÷ 10).
(E) We cannot infer that more people have seen movies in the first half of this
year, even though revenues are higher. It could be, for example, that the same
number of people saw movies but ticket prices have risen sharply.

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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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15 Feb 2015, 08:27
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KS15 wrote:
souvik101990 wrote:
Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far. If the statements above are true, which of the following must be true?

A. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year.

B. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.

C. The price of a movie ticket has not increased since last year.

D. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.

E. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.

D for me

Hey,

It cannot be D since we cannot predict the revenue here as you don't know if the price of the receipts have been kept same or increased or decreased. Here the author talks about increased number of receipts which can only point to higher number of viewers. So it should be E.
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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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15 Feb 2015, 09:21
Can anybody explain why A is wrong
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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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17 Feb 2015, 01:33
Hi,

I agree on the drastic case , which is somewhat unrealistic .
But in the argument -- where is it mentioned that the revenues are higher this year then the previous ?
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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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17 Feb 2015, 16:36
Hi..

The "drastic" case is amusing. The stem mentions that the number of movies slated to be launched for second half is equal to the number already launched, and hence, is > 0, and unless these movies produce negative revenue (somewhat drastic, indeed) the accumulated total is going to rise.

In my humble opinion, the solution should be A.

Let's assume that there is indeed a drastic possibility of the so called OA being incorrect ...
Cheers,
Q
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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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18 Feb 2015, 06:05
quasar66 wrote:
Hi..

The "drastic" case is amusing. The stem mentions that the number of movies slated to be launched for second half is equal to the number already launched, and hence, is > 0, and unless these movies produce negative revenue (somewhat drastic, indeed) the accumulated total is going to rise.

In my humble opinion, the solution should be A.

Let's assume that there is indeed a drastic possibility of the so called OA being incorrect ...
Cheers,
Q

Dear quasar66,

A. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year.

What information is given in the question:
Number of tickets sold for the first half: x
Number of tickets sold for last year: Y

X= 1.2Y

Let's assume Y = 100000
Then X = 120000

In the next half of the year let's assume total tickets sold = 500(Because all the movies sucked, not drastic but quite possible)

Total Sales this year = 120500
Total Sales last year = 100000

Are sales this year SIGNIFICANTLY greater than 20% of last year's sales : Atleast not according to me.

Do let me know in the same humble opinion if there's anything wrong in this reasoning.
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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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20 Feb 2015, 09:44
paandey wrote:
KS15 wrote:
souvik101990 wrote:
Box office receipts for independent movies for the first half of this year have increased by 20 percent over the total receipts for independent movies for all of last year. Last year, 50 independent movies were released, while so far this year only 20 independent movies have been released. The number of independent movies slated for release in the second half of this year is roughly equal to the number released so far. If the statements above are true, which of the following must be true?

A. The total box office receipts for independent movies this year will be significantly more than 20 percent greater than the receipts for independent movies last year.

B. The number of independent movies released in the first half of this year is equal to the number released in the first half of last year.

C. The price of a movie ticket has not increased since last year.

D. The average revenues of the independent films released during the first half of this year is greater than that of all independent films released last year.

E. The number of people seeing independent movies during the first half of this year is greater than the number who saw independent movies last year.

D for me

Hey,

It cannot be D since we cannot predict the revenue here as you don't know if the price of the receipts have been kept same or increased or decreased. Here the author talks about increased number of receipts which can only point to higher number of viewers. So it should be E.

Can any one clear the above reasoning. since we can not assume the price of the receipt, how D is correct?
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Inference Revision: Box office receipts for independent movies [#permalink]

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26 Feb 2015, 05:20
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paandey wrote:

Hey,

It cannot be D since we cannot predict the revenue here as you don't know if the price of the receipts have been kept same or increased or decreased. Here the author talks about increased number of receipts which can only point to higher number of viewers. So it should be E.

Can any one clear the above reasoning. since we can not assume the price of the receipt, how D is correct?

In this case "receipts" means "total turnover", not "tickets".
So we have bigger turnover. But we don't know reasons of this effect: maybe more customers, maybe higher price per ticket.
But we know that turnover of last year already less than turnover of this year.
In D we see "average per movie" comparison, so D it's correct answer.

Quote:
Collins Cobuild vocabulary:
2) Receipts are the amount of money received during a particular period, for example by a shop or theatre.

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Re: Inference Revision: Box office receipts for independent movies [#permalink]

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26 Feb 2015, 06:28
paandey wrote:
Dear Cobuild,

Thanks for the much required clarification. But do you think such ambiguous question could actually be there during the actual exam ? Or was it just me for who the meaning of Receipts was not clear ?

I read like 3 or 4 debriefs from people with top GMAT score and they told that sometimes Verbal questions from Manhattan GMAT a little strange.
So maybe this is such case.
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Re: Inference Revision: Box office receipts for independent movies   [#permalink] 26 Feb 2015, 06:28

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