I04-26

Question

https://gmatclub.com/gmat-focus-tests/resources/import/img/I04-26new.webp 
 
The figure illustrates the percentages of food away from home (FAFH) expenditures by outlet type in 1987 and 2017. The acronym NEC stands for "not elsewhere classified." All estimates include both sales taxes and tips.
 
Select from each drop-down menu the option that creates the most accurate statement, given the information provided.

If FAFH expenditures did not decrease from 1987 to 2017, the category with the greatest percentage increase in expenditures over the 30-year period is  GRAPH_1_PLACEHOLDER .

If expenditures classified into the "Other FAFH sales, NEC" category in 2017 were equally distributed among the other eight categories, the category with the highest percentage increase in share would see an increase of approximately  GRAPH_2_PLACEHOLDER .

Bunuel · Answer

Official Solution:

Drop-down 1: 
 
We should focus on the category with the largest increase in share. Recreational Places experienced the greatest increase, with its share rising from 2.1% to 3.6%, representing a 1.7-fold increase. This means the actual increase in expenditures for this category would be 1.7 * (the increase in total expenditures). For instance, if total expenditures doubled, expenditures for Recreational Places would increase by 1.7 * 2 = 3.4 times.
 
 Drop-down 2: 
 
In 2017, "Other FAFH sales, NEC" accounted for 2.6% of the total expenditure. Distributing this share evenly among the other eight categories would add approximately  \frac{2.6}{8} \approx 0.33  percentage points to each. The category with the highest percentage increase in share would be the one with the smallest initial share, which is Drinking Places, with an initial share of 0.6%. The percentage increase in share, therefore, would be  \frac{0.33}{0.6} * 100 = 55\% .

Correct answer:

Dropdown 1:  "Recreational places"

Dropdown 2:  "55%"

Bunuel · Answer

I have revised the question, solution, and formatting by adding more details to enhance clarity.

Geminiggl · Answer

I think this is a  high-quality  question and I agree with explanation.

ManavAilawadi · Answer

I did not quite understand the solution. We are saying recreational places have the maximum increase in the share from 2.1% to 3.6%. But if we look at Limited-Service Restaurants, the category has got the maximum increase. In 1987 its share was 32.6% and in 2017 it was 36.1%, representing a 3.5 fold increase, double that of Recreational Places.

Please help me understand why we have taken Recreational Places

Please help me understand why we have taken Recreational Places

Bunuel · Answer

You're misunderstanding the problem. The question asks for the greatest relative increase, not the absolute increase.

Recreational Places increased its share from 2.1% to 3.6%, which is a 1.7-fold increase (3.6 / 2.1 ≈ 1.7). This means its share grew by 70% relative to its original share.

Meanwhile, Limited-Service Restaurants increased from 32.6% to 36.1%, which is only about a 1.11-fold increase (36.1 / 32.6 ≈ 1.11), or 11% relative growth.

Just because Limited-Service Restaurants had a larger absolute difference doesn’t mean it had the largest relative increase. The problem specifically asks for the category with the greatest percentage increase, which refers to the proportionate growth, not the raw change in percentage points.

That’s why Recreational Places is the correct answer, and Limited-Service Restaurants isn’t.

buku1213 · Answer

i can anyone explain the 2nd part, please? from this language,e I initially thought you were comparing the increment between 1987 and 2017. But after that in explanation, I saw you are comparing the item of 2017 only. from this word how does one understands the comparison between 2017 only, before distribution nd after distribution??

Bunuel · Answer

"in 2017 were equally distributed"
 
This signals everything is happening  within 2017 only  — you're comparing the  actual 2017 shares   before  and  after  redistribution, not comparing to 1987.

sanikaprakash · Answer

How to identify a "relative" percent change from an "absolute percent change in the question?

Bunuel · Answer

Here’s the short clarification:

Absolute change  looks at the raw difference in percentage points.
 Example: Limited-service restaurants went from 32.6% to 36.1%. That’s an absolute increase of 3.5 percentage points. 
  Relative change  (percentage increase) looks at how big that increase is compared to the original.
 Example: Recreational places went from 2.1% to 3.6%. The absolute change is only 1.5 points, but relative to its starting value (1.5/2.1 ≈ 70%), that’s much larger than the 11% increase for limited-service restaurants.

So, when the question asks for the  greatest percentage increase , it means relative change, not absolute difference.

harshitasinghal · Answer

So, there are 4 options in the drop down for the 1st question in the graph analysis. Instead of comparing these 4 fractions to each other to find the highest relative increase in share percentage. Are there shortcuts or things to note to narrow down our options for such questions?

As this ques sometimes also come in the form of 2-part analysis where you might have to compare all 10 fractions to see if its supported or not. How can we solve such a question faster and more efficiently?

Bunuel · Answer

You don't really need to calculate much in this question.

Drop-down 1:

Keep only gainers:
 
Full-service restaurants 34.0 to 35.8
 Limited-service restaurants 32.6 to 36.1
 Recreational places 2.1 to 3.6

You do not need to calculate precise ratios. The first two moved only a few points on bases around the mid-30s, so their ratios are close to 1. Recreational places jumped from about 2 to about 3.6, so its ratio is clearly the largest. Answer: Recreational places.

Drop-down 2: 
 
“Other FAFH, NEC” in 2017 is 2.6%. Split equally across 8 categories adds about 2.6/8 ≈ 0.33 percentage points to each. With the same increment for all, percent increase equals increment/base, so  the smallest base gives the largest percent increase . Drinking places starts at 0.6, so 0.33/0.6 ≈ 55%.

f3rn4nd44m0r1m · Answer

I like the solution - it’s helpful.

honouredone · Answer

I have understood that recreational spaces is the correct answer, but how to identify what the question is asking? How to identify if the question is asking about relative increase or absolute difference in general?

Bunuel

Bunuel · Answer

When a question says  “greatest percentage increase”  or uses words like  “increase by what percent” , it’s referring to  relative change,  that is, how much bigger the new value is compared to the old one.

If instead the question says  “increase in percentage points”  or just  “difference between percentages” , it’s referring to the  absolute change , the raw difference between the two percentages.

doloremvoluptatum · Answer

How much time should be given to the 1st blank, knowing that calculating the difference and the division, even while using calculator can take up a lot of time for 9 sections and also understanding the question

Bunuel · Answer

I tried addressing the timing issue for this question here: https://gmatclub.com/forum/i04-437805.html#p3627111 Please review.

SanuBest · Answer

I did not quite understand the solution. Why is it not limited service restaurants?

Bunuel · Answer

Your doubt is addressed in detail  HERE . Hope it helps.

SanuBest · Answer

Thank you!

I04-26

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