From an article in the Wall Street Chronicle: ...

Question

From an article in the Wall Street Chronicle: Sales statistics of major electronics manufacturers with sales in the United States show that 80% of consumer electronics (such as televisions, DVD players, and computers) sold in the U.S. last year were manufactured in China.
 
From an article in Consumer Results Magazine: The results from last year's survey on consumer electronics choices show that while products made in China are still very popular, more and more Americans are buying products made in Japan, Germany, and the United States. These three countries combined account for 38% of products sold in the U.S. last year.
 
For both of the findings to be accurate, which of the following must be true?

(A) More Americans who do not purchase consumer electronics prefer goods produced in China to those produced elsewhere.

(B) Major electronics manufacturers do not limit their production plants to one country, often dividing different stages of manufacturing among plants around the world.

(C) Most consumer electronics purchased last year that were not manufactured in China were manufactured and sold in the United States.

(D) The average price of a Chinese-manufactured consumer electronics device is lower than that of a device manufactured elsewhere.

(E) Major electronics manufacturers sell a higher percentage of Chinese-produced consumer devices than do smaller manufacturers.

Source:   GMAT Hacks - 020513
OE to follow ...

jitendra31 · Accepted Answer

- Major electronics manufacturers selling in the US - China (80%) + Others (20%)
- Total electronics sold in the US - China (62%) + Others (38%)

If we analyze the above two equations, it is easy to see that 'Others' increased from 20% to 38% when we moved from 'Major Electronics Manufacturers' (which are expected to account for a higher share in the market) to 'Total' market. This shows that smaller manufacturers should be heavily focusing on other destinations, such as Japan, Germany...to make this happen mathematically. (Option E)

Let me know if you need more explanation.

Thanks,
J.I.T
(give kudos if you think i deserve some)

igotthis · Answer

Ok, this took a while!

Wall Street claim: 80% electronics sold in the US--> manufactured in China-----> 80% sales
Magazine survey: Yes, but more americans are buying from Japan, Germany, and the United States---> 38% of sales

A - While this is true, but the magazine survey says that more americans also prefer goods from Japan, Germany and US. Not true
B- production plants tell me nothing about sales. I can have a million production plants and still sell nothing
C- First claim says that 80% of sales were items manufactured in china. Not true
D- Tricky. You would think that since the average price is less for chinese manufactured product sales would be higher and this would be true. But none of the statements in the above claims say that people will buy even if the price is low. We cant infer this. Not true
E - Now if major manufacturers sell a higher % of chinese manufactured products (80%), than smaller manufacturers (small because Japan, US and Germany together count for only 38%). This is it

I tried!

mohnish104 · Answer

Yea!!! Got it right!!! Wasn't all that difficult or maybe the categorization made me read the question really carefully.

mehtakaustubh · Answer

IMO E using POE...
(A) More Americans who do not purchase consumer electronics prefer goods produced in China to those produced elsewhere....  we dont know this, no info related to this is mentioned in argument  
(B) Major electronics manufacturers do not limit their production plants to one country, often dividing different stages of manufacturing among plants around the world.....  Irrelevant we are not concerned if different stages are manufactured in different countries we are just concerned about the final product and consumer here....  
(C) Most consumer electronics purchased last year that were not manufactured in China were manufactured and sold in the United States.  we dont know this for sure as passage mentiones 38 % of Consumer electronice in Japan, Germany, and the United States  
(D) The average price of a Chinese-manufactured consumer electronics device is lower than that of a device manufactured elsewhere.  the argument doesnot mention anything regarding the price of products....so irrelevant  
(E) Major electronics manufacturers sell a higher percentage of Chinese-produced consumer devices than do smaller manufacturers.  this is Ok as passage mentions 80% goods manufactured in china and 38 % in other countries mentioned...so we can consider this to be true.

winwin0209 · Answer

Claim 1: Products manufactured in China accounts for 80% of sales in US in last year.  Survey point:   Sales statistics of   major   electronics manufacturers 
Claim 2: Products manufactured in Japan + Germany + United States accounts for 38% of sales in US in last year.  Survey point:   Survey on consumer electronics choices.
We should find a statement which makes these two claims true. Do not try to think too much about percentages coming together to 100%. Surveys are from different sources. 
(E) Exactly shows the same difference between "major electronics manufacturers" and All others. Answer: E

carcass · Answer

From an article in the Wall Street Chronicle: Sales statistics of major electronics manufacturers with sales in the United States show that 80% of consumer electronics (such as televisions, DVD players, and computers) sold in the U.S. last year were manufactured in China.
 
From an article in Consumer Results Magazine: The results from last year's survey on consumer electronics choices show that while products made in China are still very popular, more and more Americans are buying products made in Japan, Germany, and the United States. These three countries combined account for 38% of products sold in the U.S. last year.
 
For both of the findings to be accurate, which of the following must be true?

(A) More Americans who do not purchase consumer electronics prefer goods produced in China to those produced elsewhere.
(B) Major electronics manufacturers do not limit their production plants to one country, often dividing different stages of manufacturing among plants around the world.
(C) Most consumer electronics purchased last year that were not manufactured in China were manufactured and sold in the United States.
(D) The average price of a Chinese-manufactured consumer electronics device is lower than that of a device manufactured elsewhere.
(E) Major electronics manufacturers sell a higher percentage of Chinese-produced consumer devices than do smaller manufacturers.

1904praveen · Answer

Here we need to find an answer choice which makes both findings correct. i.e 
1) ...80% of consumer electronics were manufactured in China.
2)...38% of products were made in Japan, Germany and US.

By simple thinking both can occur only in the scenario when there is some overlap. I mean some part of product of is getting manufactured in other country rather than native country.

On the same line we need to look for an similar answer choice.

(A) More Americans who do not purchase consumer electronics prefer goods produced in China to those produced elsewhere.
 This answer choice is of no use because it is talking about who do not purchase consumer electronics.--Out

(B) Major electronics manufacturers do not limit their production plants to one country, often dividing different stages of manufacturing among plants around the world.
 Hold on, this is on similar line of our thinking. HOLD ON

(C) Most consumer electronics purchased last year that were not manufactured in China were manufactured and sold in the United States.
 This is of no use because it is comparing China and U.S manufactured products instead of China and (Japan, Germany, and the United States). --Out

(D) The average price of a Chinese-manufactured consumer electronics device is lower than that of a device manufactured elsewhere.
 Price is not here in discussion for comparison. --Out

(E) Major electronics manufacturers sell a higher percentage of Chinese-produced consumer devices than do smaller manufacturers. 
 Major/Minor Manufacture's sale is not here in discussion for comparison.--Out

We left with answer choice option B and I feel answer choice B is correct one.

carcass · Answer

what do you feel maybe is not the correct answer (almost never)

In the stimulus nothing is said about different strategies or different plants in different coutries hold by a company

semwal · Answer

AS IT TURNED OUT......THIS IS ACTUALLY A QUESTION OF WEIGHTED AVERAGE.............

Wall Street Chronicle : Sales  statistics of major electronics manufacturers  with sales in the United States show that  80% of consumer electronics (such as televisions, DVD players, and computers) sold in the U.S. last year were manufactured in China.

Consumer Results Magazine:  The results from last year's  survey on consumer electronics choices  show that while products made in China are still very popular,  more and more Americans are buying products made in Japan, Germany, and the United States. These three countries combined account for 38% of products sold in the U.S. last year.

For both of the findings to be accurate, which of the following must be true?

(A) More Americans who  do not purchase consumer electronics  prefer goods produced in China to those produced elsewhere. .. no data available about those who do not buy consumer electronics... hence .. INCORRECT... 
(B) Major electronics manufacturers do not limit their production plants to one country, often dividing different stages of manufacturing among plants around the world.... the stimulus talks about sale in other parts of the world, not production ... hence .. INCORRECT  .
(C) Most consumer electronics purchased last year that were not manufactured in China were manufactured and sold in the United States... NOT implied... it could have been manufactured in Japan, Germany.... or else where... INCORRECT .
(D) The average price of a Chinese-manufactured consumer electronics device is lower than that of a device manufactured elsewhere.... THIS MAY BE GENERAL KNOWLEDGE BUT NOT IMPLIED HERE...INCORRECT 
(E) Major electronics manufacturers sell a higher percentage of Chinese-produced consumer devices than do smaller manufacturers.... CORRECT... AS PER law of averages...since among major electronics manufacturers, 80% devices sold are chinese and taking overall statistics- maximum (100-38)= 62% could be chinese( as balance are Japan, Germany, and the United States make) ....hence by weighted average.... less than 62% chinese products sold by smaller manufacturers.....hence CORRECT  ...

kudos, if you please..........

Paris75 · Answer

Tricky part here is that:

1st)  Sales statistics of major electronics manufacturers

2nd)  products sold in the U.S. last year

Therefore, it is not the same panel measured.

Answer is E .

aditya111 · Answer

what are the OA and OE carcass ???

bschool17 · Answer

missed this detail and got it wrong.
+1 KUDOS for

+1 KUDOS for question

Please post OE

navaljoshi · Answer

E it is , the only reason why Chinese electronic products are so famous.

BassanioGratiano · Answer

I feel kind of dumb. I still don't get why E is the answer. When the stimulus asks "For both of the findings to be accurate, which of the following must be true?" is it asking for an answer choice that is true for both articles?

BassanioGratiano · Answer

Makes great sense. I did not differentiate the major electronics manufacturers from the total market. Thank you.

ShashankDave · Answer

If read carefully, it's not that difficult to arrive at the correct answer.
+1 for E.

Bumping this for further discussion and more attempts.

This is one question that I think is very well written according to the standards. Great work by Gmathacks.

sallysea · Answer

Merged topics. Please, search before posting questions!

sasyaharry · Answer

The reason B is so compelling is because there is no clear distinction between the timing of these articles. If both articles were published the same year then there is some anomaly. For me it felt like either the articles were untrue or some part of the 38% purported to be made in Japan, Germany and US were intact being made in China and were part of the 80%.

Ridhimajain96 · Answer

the only options that explains that % of goods sold in U.S that were manufactured by China and other countries(Japan, Germany and U.S) was 80% and 38% (totals more than 100%) is the option B 
I am unable to understand y E is correct

From an article in the Wall Street Chronicle: ...

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