In 1984 the average cost of operating a subcompact car was approximate

Question

AVERAGE COSTS OF OPERATING SUBCOMPACT, COMPACT, AND MIDSIZE CARS IN THE UNITED STATES, 1982～1986

https://gmatclub.com/forum/download/file.php?id=35361

In 1984 the average cost of operating a subcompact car was approximately what percent less than the average cost of operating a midsized car?

(A) 12%

(B) 20%

(C) 25%

(D) 33%

(E) 48%

ScottTargetTestPrep · Accepted Answer

We can use the percent change formula.

Approximating, we have:

(0.37 - 0.49)/0.49 = 0.12/0.49 ≈ 0.12/0.48 = 1/4 = 25%

Answer: C

NehaW · Answer

I think there is a mistake in your approach .. 
We need not take the average for all the years but only for 1984 as it is clearly mentioned in the question ..
Therefore it would go somewhat like .49 × 10000 = 4900
.37 × 10000 = 3700

4900-3700 = 1200

1200/4900*100 = 25% approx.
Ans (C)

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amanvermagmat · Answer

For Subcompact car, we can observe that out of the five values, 
2 values are exactly 0.4
1 value is 0.35
2 values are between 0.3 and 0.35

So the average will be approx 0.35 or 0.36

For midsize car, 
4 values are between 0.45 and 0.5
1 value is about 0.55

So the average will be approx 0.47 or 0.48

So taking the two answers are 0.36 and 0.48:
Required percentage = (0.48-0.36)/0.48 * 100 = 25%

Hence answer is  C

RJ7X0DefiningMyX · Answer

Forgive me, if my question is naive, but is this is Quant question or an IR question?

RashedVai · Answer

Why this is not the other way around? Like:
(0.49 - 0.37)/0.37 = 0.323

AND in addition your method seems give a negative percentage.
(0.37 - 0.49) = - 0.12

Posted from my mobile device

JenniferMassey · Answer

I need help with this question. Can someone please explain.

What I understood to do is find out average and then percentage change formula

(Average of midsized car - Average of subcompact car / Average of subcompact car) * 100

But I could not reach the correct option

Posted from my mobile device

JenniferMassey · Answer

Why this is not the other way around? Like:
(0.49 - 0.37)/0.37 = 0.323

AND in addition your method seems give a negative percentage.
(0.37 - 0.49) = - 0.12

Posted from my mobile device

MBAB123 · Answer

JenniferMassey , the highlighted part is where you want wrong. You need to divide it by the avg of midsized car as the question is -  what percent less than the average cost of operating a  midsized car ?

vatsal323 · Answer

But how do we that the value is 0.37 and not 0.35? I got 20% (B)

waytowharton · Answer

Bunuel   ScottTargetTestPrep 
 KarishmaB 
In this question for average cost of operating a midsized car, we will need to find average value for 5 years. Is my understanding correct?

lucasd14 · Answer

The question asks for the value (difference % from subcompact to midsize) in year 1984. No need to consider the rest of the years.

KarishmaB · Answer

Note what is written at the top of the graph:
"AVERAGE COSTS OF OPERATING SUBCOMPACT, COMPACT, AND MIDSIZE CARS IN THE UNITED STATES,..."

You are already given "average" costs for each year. You only have to focus on the 1984 numbers.

waytowharton · Answer

Thanks  KarishmaB , I have doubt in understanding the question, "In 1984 the average cost of operating a subcompact car was approximately what percent less than the average cost of operating a midsized car?". In this question modifier "In 1984" modifies both the average cost of operating a subcompact car and average cost of operating a midsized car or it only modifies the average cost of operating a subcompact car?

KarishmaB · Answer

In 1984, A was approximately what percent less than B?

A - average cost of operating a subcompact car
B - average cost of operating a mid size car

We have a figure of A for 1984 and a figure of B for 1984. Those are the figures we will compare. The "in 1984" will modify the entire clause.

If A of 1984 is to be compared with average B across the 5 years, it will be given something like:
"The average cost of operating a subcompact car in 1984 was approximately what percent less than the average cost of operating a midsized car across the 5 years?

stoned · Answer

pay attention to what is asked
here what % less than midsize is asked hence divided by mid-size value
otherwise if what percentage greater than sub-compact was asked we will divide by the subcompact value.

achloes · Answer

ScottTargetTestPrep   JeffTargetTestPrep

Solid approach, but how did you determine that subcompact equals the final value and midsize equals the initial value?

Is it because of the use of "than", which I presume indicates that the element that follows the word is the base value?

Thanks in advance!

Regor60 · Answer

"Than" indicates that the following is the base for the percentage calculation, yes.

The subtraction uses the larger number less the smaller number to yield a postive result

Posted from my mobile device

Vikasgarg1 · Answer

Hi

In this type of graph question, How to estimate the nos. I considered subcompact as 0.35 and Midsized as 0.48 and then calculated percentage less it was above 26+ so I selected as 33% that was incorrect. So, In exam will the actual no. will be shown on screen when we will move cursor on graph or we have to do estimation only.

Natansha · Answer

how do we estimate 0.37 & 0.49, when the 0.37 clearly looks like 0.35 to me. I solved by taking 0.35 & 0.5
0.15/0.5 *100 and got 30%
rounded it uo to 33% since our original denominator is 0.49 a lil less

In 1984 the average cost of operating a subcompact car was approximate

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In 1984 the average cost of operating a subcompact car was approximate

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