Loyal membership comes with a number of excellent benefits. Members en

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 $65.00 will be closest to= 60% of 65= 39$

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.

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!

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.

Sajjad1994 something seems wrong in the solutions. You have mentioned no to alll in summary but in explanation you have marked yes for st 2.

Alos pls clarify, is the 10% discount applied on discount after 40% or is it on total retail value. How do we discern this from the given data as to which meaning is implied.

p456 lets connect offline

Hello Elite097

Sorry for late reply

Official explanation stands correct and the official answer to the second statement is "Yes". There was typo in OAs which created confusion. Edited accordingly.

Thank you.

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.

Thanks for your response Sajjad1994. I get your point. Sorry to create confusion, i was just trying to give example. But thanks for clarification.

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.