vad3tha wrote:
In 1984, network television commercials accounted for 80% of all network and non-network television advertising revenue. In 2004, that figure was 60%. During that same period, operating cost for the networks remained steady, and in 2004 every major network announced record setting profits.
The information above, if true, supports which of the following conclusions?
A) Between 1984 and 2004, the number of homes with access to non-network television channels increased by more than 20%.
B) Teenagers comprise a growing proportion of television viewers, and teenagers prefer to watch non-network television shows.
C) The amount of advertising revenue earned from non-network television commercials in 2004 was greater than the amount of revenue earned by network television commercials in 1984.
D) Between 1984 and 2004, advertising revenue earned from non-network television commercials grew at a faster rate than revenue earned from network television commercials.
E) Soon revenue from non-network television commercials will surpass revenue from network television commercials.
Hello vad3tha.
Here is my 2 cents. Hope it helps.
ANALYZE THE STIMULUS:Fact 1: In 1984, network television commercials accounted for
80% of all network and non-network television advertising revenue.
Fact 2: In 2004, that figure was
60%.
Fact 3: During that same period, operating
cost for the networks remained steady,
Fact 4: In 2004 every major network announced
record setting profits.
Question: The information above, if true, supports which of the following
conclusions?
Pre-thinking: - From fact 3:
Costs remained; - From fact 4: In 2004, Network TV had profits -->
REVENUE - COST >= 0-->
Revenue must be equal or greater than that in 1984.
KEY. We don’t have to assume revenues will be equal or greater, this is the hidden fact.- Clearly, revenue of Network TV increased (or stayed the same) but its percentage decreased compared to Non-network TV. Thus, non-network TV must grow at faster rate than network TV in terms of revenue.
ANALYZE EACH OPTION:A) Between 1984 and 2004, the number of homes with access to non-network television channels increased by more than 20%.
Wrong. We can’t infer “20%”.
B) Teenagers comprise a growing proportion of television viewers, and teenagers prefer to watch non-network television shows.
Wrong. Teenagers are only a sub-group. It can't represent for the whole group.
C) The amount of advertising revenue earned from non-network television commercials in 2004 was greater than the amount of revenue earned by network television commercials in 1984.
Wrong. NOTE: we can’t convert from percentage to absolute value. This is a popular trap in GMAT. Larger percentage does not mean larger absolute value and vice versa.
D) Between 1984 and 2004, advertising revenue earned from non-network television commercials grew at a faster rate than revenue earned from network television commercials.
Correct. KEY is revenue of network TV increased but its percentage decrease, thus it must grow at slower rate than non-network TV did.E) Soon revenue from non-network television commercials will surpass revenue from network television commercials.
Wrong. Can’t infer that.
Hope it helps.
close
25 Aug 2014, 01:34
40%
(02:29)
wrong 
