I10-19

Question

In September 1997, Philadelphia’s long-time commercial classical station, WFLN, was sold for $85,000,000 and changed formats. One week later, Temple University’s WRTI, an all-jazz station since 1958, acquired WFLN’s collection and added classical music to its format.
 
After the format change, WRTI aired classical music on weekdays from 6 a.m. until 6 p.m., and jazz from 6 p.m. until 6 a.m. Saturday daytime hours were devoted to classical music (except for a 30-minute talk show at 6 a.m. and a 40-minute arts news show at 11 a.m.), while Sunday daytime hours were devoted to gospel or jazz until 3 p.m. Weekends also included syndicated programs such as  Piano Jazz ,  Jazz 20 Profiles , and  From the Top , as well as live broadcasts of performances by the Metropolitan Opera in season.
 
WRTI’s swift move not only prevented the demise of classical music radio in the nation’s sixth largest market but also benefited the station by drawing increased listeners and contributions, particularly from audiences left without another dedicated classical option after WFLN’s format change.In the summer of 1997, prior to adding classical music broadcasts, the station had approximately 6,500 average-quarter-hour (AQH) listeners. By the fall of 2005, the AQH audience had reached 18,300—a gain of 180%.
 
Membership also grew. In June 1997, WRTI had 3,371 members; one year later, membership was 9,411. It continued to rise, reaching 15,000 by 2005. In 1997, the station received approximately $259,000 in member contributions. In 1998, this amount increased to about $390,000. Member contributions continued to rise almost every year, surpassing $1,000,000 in 2003. In 2005, the station garnered $1,200,000 from members.
 
A decline in contributions and membership numbers in 1999 and 2001 reflected some strain from the station’s rapid growth. To manage the expansion, the station hired a chief financial officer in 1999 and a membership director in 2001. Both members and contributions rose following these staff additions.The graph below shows WRTI’s total number of members and total member contributions for each year from 1996 through 2005. The left vertical axis represents the number of members. The right vertical axis represents total contributions in dollars.
  https://gmatclub.com/gmat-focus-tests/resources/import/img/I10-02.png

Bunuel · Answer

Official Solution:

WRTI’s share of the terrestrial radio market increased between 1997 and 2005. 
 
• Although WRTI experienced growth in listeners and members during this period, no information is provided about the size of the terrestrial radio market, the station’s share of that market, or how its performance compared to competitors. Therefore, we cannot determine whether WRTI’s market share increased. Not supported.
 
 The number of members increased at a faster rate than total member contributions from 1997 to 2005. 
 
• According to Tab 2, the number of members increased from 3,371 to 15,000—approximately a 4.45-fold increase. During the same period, total member contributions rose from $259,000 to $1,200,000—approximately a 4.63-fold increase. Since contributions increased by a slightly greater factor than membership, the statement is incorrect. Not supported.
 
 1998 had the lowest average contribution per member between 1997 and 2005. 
 
• We are looking for a year with a relatively low point for total contributions and a relatively high point for membership — indicating a low contribution-per-member ratio. In the graph, 1998 shows the lowest ratio: contributions were approximately $400,000 and membership was about 9,900, yielding an average of roughly $40 per member, the lowest of the period. Supported.
 
 The number of members increased every year between 1997 and 2005. 
 
• Tab 2 states that the number of members declined in both 1999 and 2001 due to strain from the station’s rapid growth. Although the overall trend across the period was upward, membership did not increase every single year. Not supported.
 
 Only individuals were allowed to be members. 
 
• The text refers simply to “members” and does not specify whether they had to be individuals. There is no information about membership eligibility or whether organizations were permitted or excluded. Not supported.

Correct answer:

Which of the following statements about WRTI from 1997 to 2005 is best supported by the information provided?  "1998 had the lowest average contribution per member between 1997 and 2005."

Bunuel · Answer

This MSR question and its solutions have been completely revised and improved.

amanK007 · Answer

I don’t quite agree with the solution. 1998 had a contribution of around $ 900,000, which makes this statement incorrect: "1998 had the lowest average contribution per member between 1997 and 2005."

Bunuel · Answer

https://gmatclub.com/forum/download/file.php?id=85853 You misread the graph and interpreted it incorrectly. Please check it again more carefully! The blue line represents contributions, while the bars represent members. In 1998, the blue line is clearly just under the $400,000 mark, not anywhere near $900,000. At the same time, the membership bars are close to 9,900. That gives an average contribution per member of about $40, which is the lowest across 1997-2005. GMAT-Club-Forum-731fqp37.png

I10-19

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

	WRTI’s share of the terrestrial radio market increased between 1997 and 2005.
	The number of members increased at a faster rate than total member contributions from 1997 to 2005.
	1998 had the lowest average contribution per member between 1997 and 2005.
	The number of members increased every year between 1997 and 2005.
	Only individuals were allowed to be members.