The table below outlines the costs of a certain company over an eight

Question

The table below outlines the costs of a certain company over an eight-year time frame. All amounts given are in millions of US dollars.

Year of Business
Expense (all expenses
in millions of dollars)    Salary    Rent    Maintenance
Facility    Equipment
Purchase    Utilities    Dividends
Stock    Payments
Interest     Research &
Development     2000  43.24  0.23  1.2  15  0.2  4.362  21.4  4.2    2001  44.53  0.25  2.1  19  0.6  5.291  23.7  4.7    2002  39.72  0.28  1.5  14  0.1  4.778  26.8  6.4    2003  42.94  0.31  1.5  33  0.5  3.224  32.5  5.3    2004  41.36  0.31  2.3  9  0.7  5.645  19.6  5.9    2005  43.37  0.34  1.1  21  1.2  5.273  22.3  6.6    2006  44.02  0.33  1.6  13  0.3  6.316  25.4  6.2    2007  46.51  0.36  2.4  27  0.6  6.829  18.1  5.1     ( Sort ↕  the table by clicking on the headers)

For each of the following statements, indicate whether it accurately represents the data for 2004. Indicate "Yes" if the statement is accurate and "No" if the statement is not.

yipmewmew · Answer

1. Yes as rent paid is 0.31 and median is (0.31+0.31)/2= 0.31

2. No as in Maintenance, utilities, dividends and research & development it has increased.

3. Yes as from 2003 to 2004 the drop is more than the year on year drop in any other years.

divyadna · Answer

Yes for all three.

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Arm007 · Answer

Lets take it one by one.

a. Rent paid was equal to the median rent paid for the eight-year period: Yes 
There are 8 elements or records here. So the median is (n4+n5)/2. If we sort rent in increasing order, then we get the rent in 2003 and 2004 to be the middle elements and since both the values are same, the median is equal to the individual elements. Hence the statement is true about 2004.

b. The total cost in the categories shown decreased as compared to 2003: Yes 
Total cost in 2003= 42.94 + 0.31 + 1.5 +33 +0.5 +3.224 +32.5 +5.3 =119.274
Total cost in 2004 = 41.36 +0.31 +2.3 +9 +0.7 +5.645 +19.6 +5.9 = 84.515
We see that the total cost has decreased. Hence this statement is also true about 2004.

c. Interest payments experienced the highest year-over-year drop for the eight-year period: Yes 
The interest rate has dropped only in 2 years(in comparison to previous year), let's compare the drop only in those 2 years.
From 32.5 to 19.6 in 2003, 2004. The drop is (32.5-19.6)*100/32.5 = 39.7%

From 25.4 to 18.1 in 2006, 2007. The drop is (25.4-18.1)*100/25.4 = 28.7%

Hence the drop in 2003-2004 is the highest. So this statement is correct.

rajtare · Answer

Rent paid can be re-arranged as 0.23,0.25,0.28, 0.31,0.31 ,0.33,0.34,0.36
since median will be the average of bold terms, which is equal to the rent paid in 2004.
 Rent paid was equal to the median rent paid for the eight-year period  -  YES 
 The total cost in the categories shown decreased as compared to 2003  -  YES - by looking at the individual cost of each categories we can see that there is a massive drop in interest payments, and equipment purchase which offsets everything else, hence the answer is yes
 Interest payments experienced the highest year-over-year drop for the eight-year period  -  YES  - by looking at the interest payment table we will notice that highest drop has happened in 2003 to 2004 which is ~40%, and from 2006-2007 which is roughly around 20%.

Archit3110 · Answer

indicate whether it accurately represents the data for 2004. Indicate "Yes" if the statement is
accurate and "No" if the statement is not.

Rent paid was equal to the median rent paid for the eight-year period.  avg of rent paid .30 and rent paid in 2004 is .31  NO 
 
The total cost in the categories shown decreased as compared to 2003.   NO

Interest payments experienced the highest year-over-year drop for the eight-year period.   YES

Kushchokhani · Answer

Rent paid was equal to the median rent paid for the eight-year period- Yes
The total cost in the categories shown decreased as compared to 2003- Yes
Interest payments experienced the highest year-over-year drop for the eight-year period- Yes

1. After sorting the table for rent column, we find that median rent is $0.31 million, which is equal to the rent paid for the year 2004. 
Hence, this statement is accurate and answer is Yes.

2. Comparing total cost of 2004 vs 2003, major reduction is in two categories- Equipment purchase and Interest payments. There is not much differential impact on other categories. Hence, it can be concluded that total cost has reduced in 2004 vs 2003. This statement is accurate and answer is Yes.

3. Interest payments have reduced just in 2 years i.e. 2004 and 2007; of these 2 years, highest drop is in the year 2004. This statement is accurate and answer is Yes.

hxalghfr · Answer

1. yes
2. yes
3. yes

av1901 · Answer

We will evaluate each statement for the year 2004:

Statement 1: Rent paid was equal to the median rent paid for the eight-year period.

To calculate median, first we need to arrange all figures of rent in ascending order:

0.23, 0.25, 0.28,   0.31  ,   0.31  , 0.33, 0.34, 0.36

Median (for a set of 8 values) = Average of 4th and 5th values =  \frac{0.31 + 0.31}{2} = 0.31

Median rent = 0.31
Rent in 2004 = 0.31

Answer: YES

Statement 2: The total cost in the categories shown decreased as compared to 2003.

Total cost in 2003 (in millions of dollars)  = 42.94 + 0.31 + 1.5 + 33 + 0.5 + 3.224 + 32.5 + 5.3 = 119.274 
Total cost in 2004 (in millions of dollars)  = 41.36 + 0.31 + 2.3 + 9 + 0.7 + 5.645 + 19.6 + 5.9 = 84.815

Total cost in 2003 > Total cost in 2004 => Total cost in the categories shown DECREASED in 2004 as compared to that in 2003

Answer: YES

Statement 3: Interest payments experienced the highest year-over-year drop for the eight-year period.

Interest payments experienced a year-over-year drop on only two occasions:

1) 2003-2004: Drop = 12.9 million
2) 2006-2007: Drop = 7.3 million

Higher drop was from 2003-2004. So yes, interest payments experienced the highest year-on-year drop for the eight-year period

Answer: YES

Catman · Answer

1. On sorting Rent paid in ascending order, we get median rent as 0.31mn dollars which is the rent paid in 2004. Hence True.

2. The total cost can be determined by adding the all cost, but by comparing the data in the two years, we can see that the cost for equipment purchase reduced from 33 to 9 million dollars and cost for payment interest reduced from 32.5 to 19.6 million dollars in the years 2003 and 2004 respectively. In other cost there is marginal increase and decrease. So, overall there is decrease in total cost in 2004 when compared with 2003. Hence True.

3. Interest payment increased from the year 2000 to 2003 and decreased from 32.5 to 19.6 which is ~ 40% decrease. In year 2004 to 2006 interest payment increased and from year 2006 to 2007, interest payment decreased from 25.4 to 18.1 which is ~28%. Hence true.

pintukr · Answer

For each of the following statements, indicate whether it accurately represents the data for 2004. Indicate "Yes" if the statement is
accurate and "No" if the statement is not.

Note : all figures in millions of US Dollars

A. Rent paid was equal to the median rent paid for the eight-year period.

Rent paid for 2004 = 31

Also, Median rent paid for 8-year pd (snce, entries are even in number, hence the middle two entries ie, 4th and 5th entry while arranging in ascending order ) = (31 + 31) /2 = 31

YES is the answer

B. The total cost in the categories shown decreased as compared to 2003.

Two large decreases in the categories (Equipment purchase and Payments Interest) sway the total costs 'higher' in 2003 vis-a-vis 2004.

YES is the answer

C. Interest payments experienced the highest year-over-year drop for the eight-year period.

Maximum drop in 2004 (for year-over-year drop) ie, 32.5 to 19.6 (approximately 60% drop). Np other drop (for year-over-year drop0 is so high.

YES is the answer

Thus, YES, YES, YES is the answer

Sajjad1994 · Answer

Official Explanation

Rent paid was equal to the median rent paid for the eight-year period.

In order to find the median, we can sort by the rent column and see that 0.31 million is the median (as it's the value in both the fourth and fifth positions in the list of 8 values). The year 2004 is one of the years that corresponds to this value, so the answer is Yes.

Answer: YES

The total cost in the categories shown decreased as compared to 2003.

While it would be possible to calculate the total cost for 2003 and 2004, it's worth looking first to see if there's a dominant trend that can help us answer this question more quickly. While there are some cases in which 2004's expenditures were greater than those in 2003, the $24 million difference in equipment purchase and the $12.9 million difference in interest payments more than offset the differences in any other columns. Since both of these major categories are greater in 2003, total cost did decrease in 2004. The answer is Yes

Answer: YES

Interest payments experienced the highest year-over-year drop for the eight-year period.

The drop from 2003 to 2004 is $12.9 million, much greater than the drop experienced in any other year shown on the table. The answer is Yes.

Answer: YES

Sajjad1994 · Answer

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UtkarshAnand · Answer

Statement 1: Rent paid was equal to the median rent paid for the eight-year period.
YES. The statement is accurate.  
Rent paid for 2004 = .31 mil = median rent paid for the eight-year period  .

Statement 2: The total cost in the categories shown decreased as compared to 2003.
YES. The statement is accurate. 
Total cost in categories in 2003 = 119.274 mil.
Total cost in categories in 2004 = 84.815 mil.

Statement 3: Interest payments experienced the highest year-over-year drop for the eight-year period.
YES. The statement is accurate. 
Drop in interest payment year over year for 2003-2004 : (32.5 - 19.6)/32.5 * 100 = 39.6%
Drop in interest payment year over year for 2006-2007: (25.4 - 18.1)/25.4 * 100 = 28.7%
Rest all the interest payments year over year witnessed increase and not a drop.

mmdfl · Answer

Quick question. You dont need to do a lot of math, just compare the magnitude order of the numbers. Solution in the files attached

kittle · Answer

This is a good-quality question as per GMAT standards.

The table below outlines the costs of a certain company over an eight

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Year of Business Expense (all expenses in millions of dollars)	Salary	Rent	Maintenance Facility	Equipment Purchase	Utilities	Dividends Stock	Payments Interest	Research & Development
2000	43.24	0.23	1.2	15	0.2	4.362	21.4	4.2
2001	44.53	0.25	2.1	19	0.6	5.291	23.7	4.7
2002	39.72	0.28	1.5	14	0.1	4.778	26.8	6.4
2003	42.94	0.31	1.5	33	0.5	3.224	32.5	5.3
2004	41.36	0.31	2.3	9	0.7	5.645	19.6	5.9
2005	43.37	0.34	1.1	21	1.2	5.273	22.3	6.6
2006	44.02	0.33	1.6	13	0.3	6.316	25.4	6.2
2007	46.51	0.36	2.4	27	0.6	6.829	18.1	5.1

GMAT Graphs and Tables (G&T) Questions

The table below outlines the costs of a certain company over an eight

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