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17 Jul 2012, 07:35
Kudos
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Dear NikhilPunjab
I really like this question. It's subtle and interesting.
So here's a solution ....
We know the revenues in in E, K, C, and F from their horizontal position. Just in terms of gross revenue, it appears the order, from least to greatest, would be E, F, C, and K ---- that's just the order of the centers of the circles from left to right.
The tricky and interesting thing about this question --- we don't want total revenue from each store, but rather, "average revenue per resident." This is a fraction:
average revenue per resident = (total revenue of that store)/(number of residents in that city)
We make a fraction as big as possible by (a) making the numerator as large as possible, and (b) making the denominator as small as possible. The number of residents (i.e. the denominator) is shown by the size of the circles. E clearly has the biggest size, the biggest denominator, and it has the smallest numerator, so E would have the smallest average revenue. Circles F & C & K all appear about the same size --- so essentially, those denominators will all be the same, and the only thing that makes a difference in the size of those fractions would be the numerator. K has the biggest numerator, so it has the biggest value of the fraction ---- i.e. the biggest average revenue per resident.
Please let me know if anyone reading this has any further questions.
Mike
I really like this question. It's subtle and interesting.
So here's a solution ....
We know the revenues in in E, K, C, and F from their horizontal position. Just in terms of gross revenue, it appears the order, from least to greatest, would be E, F, C, and K ---- that's just the order of the centers of the circles from left to right.
The tricky and interesting thing about this question --- we don't want total revenue from each store, but rather, "average revenue per resident." This is a fraction:
average revenue per resident = (total revenue of that store)/(number of residents in that city)
We make a fraction as big as possible by (a) making the numerator as large as possible, and (b) making the denominator as small as possible. The number of residents (i.e. the denominator) is shown by the size of the circles. E clearly has the biggest size, the biggest denominator, and it has the smallest numerator, so E would have the smallest average revenue. Circles F & C & K all appear about the same size --- so essentially, those denominators will all be the same, and the only thing that makes a difference in the size of those fractions would be the numerator. K has the biggest numerator, so it has the biggest value of the fraction ---- i.e. the biggest average revenue per resident.
Answer = K
Please let me know if anyone reading this has any further questions.
Mike
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
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macjas
Joined: 09 May 2012
Last visit: 30 Jul 2015
Posts: 306
Own Kudos:
Given Kudos: 100
Affiliations: UWC
Location: Canada
Schools: Rotman '15 (A) Schulich '15 (M)
GMAT 1: 620 Q42 V33
GMAT 2: 680 Q44 V38
GPA: 3.43
WE:Engineering (Media/Entertainment)
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26 Jul 2012, 23:14
Kudos
Bookmarks
Hi Mike, where's the question?
27 Jul 2012, 09:57
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macjas
Dear macjas
To be honest, I'm a little confused. I believe when I wrote that post, it was a response to an IR question NikhilPunjab had posted on the page, but now, his post is gone, and just my response to his post remains. I'm not sure what happened here.
Mike
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Data Insights Questions Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
