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1i) The median retail cost of the product line is $20.40- False
Median of 17,25,34,35,100 is 34

ii) Loyal members who purchase online save more than 50% off the cost of their total purchases and shipping compared to nonmembers- False
Non members spend p + s on purchases and shipping respectively
Members spend 0.9*0.6p + 0=0.54p on purchases and shipping respectively because member benefits include "40% off the retail price of all purchases and 10% annual cash rebate on all online orders"
50% discount on purchases and hipping = 0.5(p+s)
As we can see 0.54p>or< 0.5(p+s) hence we cannot conclude.

iii) The minimum purchase amount within the 6-month introductory period is less than the $50.00 charge issued to accounts that are canceled early- False
No minimum amount has been cited in the data and even if minimum amount has to be calculated , it will be > the minimum member price in the catalogue (10.2$), which is more than 50$ as one product will be purchased per month

2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to= 60% of 65= 39$
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Question 1, Part 1: The median retail cost of the product line is $20.40.

The median retail cost of product is $34.

Hence, the answer is No.


Question 1, Part 2: Loyal members who purchase online save more than 50% off the cost of their total purchases and shipping compared to nonmembers.


Let x be the shipping cost.

Let's consider a member and a non member purchase 1 unit of Renew Soap.

Cost for member = 27
Cost for non member = 45 + x

Savings of a member compared to a non member = 18 + x

Translating the question statement: Is (18 + x) more than 50% of (45 + x)

Is (18 + x) > (45 + x)/2
Is (18+x)/(45+x) > 1/2

We can clearly see that the answer is No.

Hence, the final answer is No.


Question 1, Part 3: The minimum purchase amount within the 6-month introductory period is less than the $50.00 charge issued to accounts that are canceled early.

The minimum amount within the 6 month introductory period = Price of Detox Tea * 6 = 10.2 *6 = $61.2

Hence, the answer is No.


Question 2: If the information contained in all three sources is correct, the member price of
an item that retails for $65.00 will be closest to:


Member Price = 60% of 65 = $39

Hence, the answer is $39.
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Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Statement 1: The median member price of the list of products from the catalogue is $20.40; the median retail cost is $34.00.

Statement 2: Loyal members receive an immediate 40% savings and 10% cash back on their online purchases, for a total savings of 50% on the retail cost of the item. They also receive free shipping, so their total savings are more than 50% of the costs that nonmembers would pay.

Statement 3: The least expensive product in the line is $10.00. If that product was ordered each month for 6 months, the total cost would be $60.00, which is more than the $50.00 cancellation fee.

Answer: No, Yes, and No


2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

The correct answer is $39. Members receive a 40% discount off the retail price of the item, for a total discount of $65*0.40, or $26. The member price is 65$-26$ or 39$.

Answer: D
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Sajjad1994
Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Statement 1: The median member price of the list of products from the catalogue is $20.40; the median retail cost is $34.00.

Statement 2: Loyal members receive an immediate 40% savings and 10% cash back on their online purchases, for a total savings of 50% on the retail cost of the item. They also receive free shipping, so their total savings are more than 50% of the costs that nonmembers would pay.

Statement 3: The least expensive product in the line is $10.00. If that product was ordered each month for 6 months, the total cost would be $60.00, which is more than the $50.00 cancellation fee.

Answer: No, Yes, and No


2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

The correct answer is $39. Members receive a 40% discount off the retail price of the item, for a total discount of $65*0.40, or $26. The member price is 65$-26$ or 39$.

Answer: D


I have a doubt in explanation of statement 2. hallfootball Elite097, please help me in understanding this.
statement 2 ask : "Loyal members who purchase online save more than 50% off the cost of their total purchases and shipping compared to nonmembers."

it says "total purchases", for example i bought some items TODAY and saved 50%. which must be wrong right because if i buy something today, then i will save only 40%. official explanation included 10% benefits which we will get on after 1 YEAR.

From statement 2, i am not getting any hint which mentions that we should consider 1 year.
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p456
I have a doubt in explanation of statement 2. hallfootball Elite097, please help me in understanding this.
statement 2 ask : "Loyal members who purchase online save more than 50% off the cost of their total purchases and shipping compared to nonmembers."

it says "total purchases", for example i bought some items TODAY and saved 50%. which must be wrong right because if i buy something today, then i will save only 40%. official explanation included 10% benefits which we will get on after 1 YEAR.

From statement 2, i am not getting any hint which mentions that we should consider 1 year.

This is the second statement:

"Loyal members who purchase online save more than 50% off the cost of their total purchases and shipping compared to nonmembers."

It didn't talk about "TODAY". And it doesn't matter when members will get 10% cashback in their pockets the reality is they will save, and the statement stands correct. I accept the wording of the question is not up to the mark.
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I have a doubt regarding part 1 (b) : Imho it should be false.

Say I would have spent $100 on conventional retail. (let's ignore the discount on shipping for now), the discount offered would have bought it down to $60. Now at the end of the year I would have received 10% rebate on my $60 expenditure, i.e. $6. Therefore my total expenditure is now $54 ($60-$6). Now the overall saving would have been less than 50% unless the shipping was a very big part of the product cost, about which we have no specific information.

Secondly, considering the second part of the supplied information, "Loyal Members" who are unable to make the requisite 6 purchases are unlikely to save more than 50% considering the $50 fine.

Would appreciate clarity on this. TIA.
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Explanation is wrong.

Just because shipping is free for members, does NOT mean shipping is NOT free for non-members.

Shipping may just be free for everyone....
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1B is definitely a NO. Let's say a member and a nonmember both bought a Detox Soup.
Member : Saved +40$ on that online purchase and received 10% cash back of that item(+6$) -> save 46$ plus WAIVED shipping fee.
(It doesn't matter when he received the cash back. That money is saved anyway)
Nonmember : Spent 100$ on the item + Shipping fee(unknow)

Here's the key. We don't have any info on Shipping fee. It could be 1$ or 100$. And the answer could be <50% or >50%, hence NO we cannot conclude that.
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It’s the 10% online cashback creates the confusion. If the writer means 10% of the retail price then yes, if of the member price then no
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then please correct the answer key of 2nd part of 1st question

Sajjad1994
Hello Everyone!

The OAs to these questions are:

Question #1: No to all.

Question #2: D

Official Explanation will be posted soon.

Day 5 (Last Day) questions are posted.

Good Luck!
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1B is a No for sure unless we know what are the shipping charges. Think the OA is incorrect.
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For Q1 Statement 2. It is given that 10% annual rebate on online purchases.


Since purchase price is already discounted by 40%. 10% would be on the discounted price. How can we say for sure that the savinf will be greater than 50% of the retail price.

The different replies is really confusing. How can we say that 10% cash rebate will be on the retail price, if not given. What is the best way to answer in such ambuiguity in Official Exam?
Sajjad1994
Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Statement 1: The median member price of the list of products from the catalogue is $20.40; the median retail cost is $34.00.

Statement 2: Loyal members receive an immediate 40% savings and 10% cash back on their online purchases, for a total savings of 50% on the retail cost of the item. They also receive free shipping, so their total savings are more than 50% of the costs that nonmembers would pay.

Statement 3: The least expensive product in the line is $10.00. If that product was ordered each month for 6 months, the total cost would be $60.00, which is more than the $50.00 cancellation fee.

Answer: No, Yes, and No


2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

The correct answer is $39. Members receive a 40% discount off the retail price of the item, for a total discount of $65*0.40, or $26. The member price is 65$-26$ or 39$.

Answer: D
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The explanation uses 10% extra discount in statement 2 of the first question yet fails to do so in the 2nd question. This is the official solution.
Sajjad1994
Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Statement 1: The median member price of the list of products from the catalogue is $20.40; the median retail cost is $34.00.

Statement 2: Loyal members receive an immediate 40% savings and 10% cash back on their online purchases, for a total savings of 50% on the retail cost of the item. They also receive free shipping, so their total savings are more than 50% of the costs that nonmembers would pay.

Statement 3: The least expensive product in the line is $10.00. If that product was ordered each month for 6 months, the total cost would be $60.00, which is more than the $50.00 cancellation fee.

Answer: No, Yes, and No


2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

The correct answer is $39. Members receive a 40% discount off the retail price of the item, for a total discount of $65*0.40, or $26. The member price is 65$-26$ or 39$.

Answer: D
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For question 1, statement 2
Let's say the price of a commodity is 100
First, a member gets a 40% discount. Therefore the price becomes 60.
Then they get 10% cashback, therefore the price is 54.
So they save 46 on 100, which is less than 50%.
Hence it should be false. You cannot add 10 to 40 and say it is a 50% discount.
Sajjad1994
Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Statement 1: The median member price of the list of products from the catalogue is $20.40; the median retail cost is $34.00.

Statement 2: Loyal members receive an immediate 40% savings and 10% cash back on their online purchases, for a total savings of 50% on the retail cost of the item. They also receive free shipping, so their total savings are more than 50% of the costs that nonmembers would pay.

Statement 3: The least expensive product in the line is $10.00. If that product was ordered each month for 6 months, the total cost would be $60.00, which is more than the $50.00 cancellation fee.

Answer: No, Yes, and No


2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

The correct answer is $39. Members receive a 40% discount off the retail price of the item, for a total discount of $65*0.40, or $26. The member price is 65$-26$ or 39$.

Answer: D
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I cannot agree more. I calculated net price for members as 0.6*P*0.9 = 0.54% of original price, thus we cannot conclude they will save more than 50%.
Sketchitesh
For Q1 Statement 2. It is given that 10% annual rebate on online purchases.


Since purchase price is already discounted by 40%. 10% would be on the discounted price. How can we say for sure that the savinf will be greater than 50% of the retail price.

The different replies is really confusing. How can we say that 10% cash rebate will be on the retail price, if not given. What is the best way to answer in such ambuiguity in Official Exam?
Sajjad1994
Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Statement 1: The median member price of the list of products from the catalogue is $20.40; the median retail cost is $34.00.

Statement 2: Loyal members receive an immediate 40% savings and 10% cash back on their online purchases, for a total savings of 50% on the retail cost of the item. They also receive free shipping, so their total savings are more than 50% of the costs that nonmembers would pay.

Statement 3: The least expensive product in the line is $10.00. If that product was ordered each month for 6 months, the total cost would be $60.00, which is more than the $50.00 cancellation fee.

Answer: No, Yes, and No


2. If the information contained in all three sources is correct, the member price of an item that retails for $65.00 will be closest to:

The correct answer is $39. Members receive a 40% discount off the retail price of the item, for a total discount of $65*0.40, or $26. The member price is 65$-26$ or 39$.

Answer: D
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For Question 2 what about the 10 percent annual rebate in the price.Shouldnt 10 percent be deducted from 39
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if the answer of 1b includes 10% rebate to justify the 50% off then the answer for the second question should also minus extra 10% from the 40% discounted price.
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