GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 17 Nov 2018, 00:54

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
  • FREE Quant Workshop by e-GMAT!

     November 18, 2018

     November 18, 2018

     07:00 AM PST

     09:00 AM PST

    Get personalized insights on how to achieve your Target Quant Score. November 18th, 7 AM PST
  • How to QUICKLY Solve GMAT Questions - GMAT Club Chat

     November 20, 2018

     November 20, 2018

     09:00 AM PST

     10:00 AM PST

    The reward for signing up with the registration form and attending the chat is: 6 free examPAL quizzes to practice your new skills after the chat.

In order to finance road repairs, the highway commission of a certain

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
avatar
G
Joined: 27 Feb 2018
Posts: 48
Location: India
Concentration: Strategy, Entrepreneurship
GMAT 1: 650 Q48 V32
GPA: 3.86
Premium Member
Re: In order to finance road repairs, the highway commission of a certain  [#permalink]

Show Tags

New post 20 Oct 2018, 23:34
TehJay wrote:
In order to finance road repairs, the highway commission of a certain state is considering a 50 percent increase in the 10-centers-per-mile toll for vehicles using its toll highway. The highway commissioner claims that the toll increase will increase the annual revenue generated by the toll highway by at least 50 percent per year.

Which of the following is an assumption on which the highway commissioner's claim depends?


(A) The amount of money required annually for road repairs will not increase from its current level.

(B) The total number of trips made on the toll highway per year will not decrease from its current level.

(C) The average length of a trip made on the toll highway will not decrease from its current level.

(D) The number of drivers who consistently avoid the highway tolls by using secondary roads will not increase from its current level.

(E) The total distance traveled by vehicles on the toll highway per year will not decrease from its current level.


Okay, so the commissioner is claiming that an increase in tolls will result in a proportionate increase in revenues. So the assumption must have something to do with the increase in tolls not somehow increasing costs or decreasing the amount of money that comes in (through a decrease in traffic, for example). For a 50% increase in tolls to result in a 50% increase in revenues, the amount of traffic would have to stay similar. But every single one of the answers makes this assumption!

A - If the amount of money for road repairs increased, more money would be spent, which would cut into that 50% figure.
B - If the total number of trips made on the highway decreased, due to the increase in tolls, then the highway would generate less money than expected. (Revenues would likely still go up, but how could they hit the 50% increase?)
C - If the average length of the trips made on the highway went down, then the tolls would generate less money, because they're paid by the mile.
D - If the toll increase causes more people to avoid using the highway, then revenues won't increase as much as hoped. I picked this answer.
E - If the total distance traveled by the vehicles went down, revenues won't increase as much as hoped. This is the OA.

The official explanation is:

"The toll is charged on a per-mile basis. A 50 percent increase in the toll will bring a 50 percent increase in revenue only if the total number of miles traveled on the toll highway per year does not decrease."

But all of the answers, except A, would result in a decrease in the total number of miles traveled on the highway.



i was confused between d and E , D says drivers avoiding toll highways if increased, will lead to decrease in revnue, so i choose D
_________________

Stay in the fight. Die another day!
If my post is making difference in your preparation, Please, please give me a Kudos!!! Thanks

Manager
Manager
User avatar
B
Joined: 08 Feb 2018
Posts: 87
GMAT 1: 670 Q50 V31
Re: In order to finance road repairs, the highway commission of a certain  [#permalink]

Show Tags

New post 20 Oct 2018, 23:47
VeritasKarishma wrote:
TehJay wrote:
In order to finance road repairs, the highway commission of a certain state is considering a 50 percent increase in the 10-centers-per-mile toll for vehicles using its toll highway. The highway commissioner claims that the toll increase will increase the annual revenue generated by the toll highway by at least 50 percent per year.

Which of the following is an assumption on which the highway commissioner's claim depends?


(A) The amount of money required annually for road repairs will not increase from its current level.

(B) The total number of trips made on the toll highway per year will not decrease from its current level.

(C) The average length of a trip made on the toll highway will not decrease from its current level.

(D) The number of drivers who consistently avoid the highway tolls by using secondary roads will not increase from its current level.

(E) The total distance traveled by vehicles on the toll highway per year will not decrease from its current level.


Okay, so the commissioner is claiming that an increase in tolls will result in a proportionate increase in revenues. So the assumption must have something to do with the increase in tolls not somehow increasing costs or decreasing the amount of money that comes in (through a decrease in traffic, for example). For a 50% increase in tolls to result in a 50% increase in revenues, the amount of traffic would have to stay similar. But every single one of the answers makes this assumption!

A - If the amount of money for road repairs increased, more money would be spent, which would cut into that 50% figure.
B - If the total number of trips made on the highway decreased, due to the increase in tolls, then the highway would generate less money than expected. (Revenues would likely still go up, but how could they hit the 50% increase?)
C - If the average length of the trips made on the highway went down, then the tolls would generate less money, because they're paid by the mile.
D - If the toll increase causes more people to avoid using the highway, then revenues won't increase as much as hoped. I picked this answer.
E - If the total distance traveled by the vehicles went down, revenues won't increase as much as hoped. This is the OA.

The official explanation is:

"The toll is charged on a per-mile basis. A 50 percent increase in the toll will bring a 50 percent increase in revenue only if the total number of miles traveled on the toll highway per year does not decrease."

But all of the answers, except A, would result in a decrease in the total number of miles traveled on the highway.


This is a tricky question. Many options look like the answer assuming everything else will remain constant. But the actual correct answer doesn't need to assume that. Let's discuss this:


Argument:
50 percent increase in toll is being considered on the 10-centers-per-mile toll for highway

Claim - the toll increase will increase the annual revenue it generates by at least 50 percent per year.

Revenue = Price*Amount
So if the toll (say Price) increases by 50%, the revenue will increase by 50% (or more) if the Amount does not decrease.

(A) The amount of money required annually for road repairs will not increase from its current level.

This is irrelevant. The target is to increase the annual revenue generated by 50%. Whether this is enough for road repairs, doesn't matter.

(B) The total number of trips made on the toll highway per year will not decrease from its current level.

On the face of it, it might seem that this is saying "Amount" should be the same or more. But it is not so. Tolls are 10 centres a mile so longer the trip, more the toll collected.
Even if the total number of trips decrease, if the trips are longer, they should cover for the reduction since tolls are 10 centres a mile. The overall toll collected may still be the same. So negating this option doesn't necessarily break the claim.

(C) The average length of a trip made on the toll highway will not decrease from its current level.

So this is complementary to option (B) above. Here, we are assuming that the length of the trip stays the same. But what about the number of trips? Even if the length decreases, if the number of trips increase, we can still maintain the Amount. So negating this option does not break the claim either.

(D) The number of drivers who consistently avoid the highway tolls by using secondary roads will not increase from its current level.

Even if fewer people take the highway, if the ones who take the highway take longer trips, the Amount can be made up. So negating this will also not break the claim. This is not n assumption either.

(E) The total distance traveled by vehicles on the toll highway per year will not decrease from its current level.

This is what we are looking for. "the total distance travelled by vehicles on the toll highway" is the "Amount". It includes the number of trips and the length of the trips. So this entire amount should not decrease. If this decreases, the revenue collected will decrease. Hence, this is an assumption made by the commissioner.

Answer (E)


Thanks VeritasKarishma for shedding some light on this question. Although, what is the meaning of a 10-centers-per-mile toll?
_________________

Kudos to Kudos :)

And yeah, definitely aim for a level of accuracy where managing time will not be a burden anymore.

Veritas Prep GMAT Instructor
User avatar
P
Joined: 16 Oct 2010
Posts: 8541
Location: Pune, India
Re: In order to finance road repairs, the highway commission of a certain  [#permalink]

Show Tags

New post 23 Oct 2018, 02:10
akshaykotha wrote:
VeritasKarishma wrote:
TehJay wrote:
In order to finance road repairs, the highway commission of a certain state is considering a 50 percent increase in the 10-centers-per-mile toll for vehicles using its toll highway. The highway commissioner claims that the toll increase will increase the annual revenue generated by the toll highway by at least 50 percent per year.

Which of the following is an assumption on which the highway commissioner's claim depends?


(A) The amount of money required annually for road repairs will not increase from its current level.

(B) The total number of trips made on the toll highway per year will not decrease from its current level.

(C) The average length of a trip made on the toll highway will not decrease from its current level.

(D) The number of drivers who consistently avoid the highway tolls by using secondary roads will not increase from its current level.

(E) The total distance traveled by vehicles on the toll highway per year will not decrease from its current level.


Okay, so the commissioner is claiming that an increase in tolls will result in a proportionate increase in revenues. So the assumption must have something to do with the increase in tolls not somehow increasing costs or decreasing the amount of money that comes in (through a decrease in traffic, for example). For a 50% increase in tolls to result in a 50% increase in revenues, the amount of traffic would have to stay similar. But every single one of the answers makes this assumption!

A - If the amount of money for road repairs increased, more money would be spent, which would cut into that 50% figure.
B - If the total number of trips made on the highway decreased, due to the increase in tolls, then the highway would generate less money than expected. (Revenues would likely still go up, but how could they hit the 50% increase?)
C - If the average length of the trips made on the highway went down, then the tolls would generate less money, because they're paid by the mile.
D - If the toll increase causes more people to avoid using the highway, then revenues won't increase as much as hoped. I picked this answer.
E - If the total distance traveled by the vehicles went down, revenues won't increase as much as hoped. This is the OA.

The official explanation is:

"The toll is charged on a per-mile basis. A 50 percent increase in the toll will bring a 50 percent increase in revenue only if the total number of miles traveled on the toll highway per year does not decrease."

But all of the answers, except A, would result in a decrease in the total number of miles traveled on the highway.


This is a tricky question. Many options look like the answer assuming everything else will remain constant. But the actual correct answer doesn't need to assume that. Let's discuss this:


Argument:
50 percent increase in toll is being considered on the 10-centers-per-mile toll for highway

Claim - the toll increase will increase the annual revenue it generates by at least 50 percent per year.

Revenue = Price*Amount
So if the toll (say Price) increases by 50%, the revenue will increase by 50% (or more) if the Amount does not decrease.

(A) The amount of money required annually for road repairs will not increase from its current level.

This is irrelevant. The target is to increase the annual revenue generated by 50%. Whether this is enough for road repairs, doesn't matter.

(B) The total number of trips made on the toll highway per year will not decrease from its current level.

On the face of it, it might seem that this is saying "Amount" should be the same or more. But it is not so. Tolls are 10 centres a mile so longer the trip, more the toll collected.
Even if the total number of trips decrease, if the trips are longer, they should cover for the reduction since tolls are 10 centres a mile. The overall toll collected may still be the same. So negating this option doesn't necessarily break the claim.

(C) The average length of a trip made on the toll highway will not decrease from its current level.

So this is complementary to option (B) above. Here, we are assuming that the length of the trip stays the same. But what about the number of trips? Even if the length decreases, if the number of trips increase, we can still maintain the Amount. So negating this option does not break the claim either.

(D) The number of drivers who consistently avoid the highway tolls by using secondary roads will not increase from its current level.

Even if fewer people take the highway, if the ones who take the highway take longer trips, the Amount can be made up. So negating this will also not break the claim. This is not n assumption either.

(E) The total distance traveled by vehicles on the toll highway per year will not decrease from its current level.

This is what we are looking for. "the total distance travelled by vehicles on the toll highway" is the "Amount". It includes the number of trips and the length of the trips. So this entire amount should not decrease. If this decreases, the revenue collected will decrease. Hence, this is an assumption made by the commissioner.

Answer (E)


Thanks VeritasKarishma for shedding some light on this question. Although, what is the meaning of a 10-centers-per-mile toll?


The only takeaway from this number for me is that toll centres are placed every so often at some distance. So the more mileage you cover on this highway, the more toll you have to pay. 10 centers per mile certainly seems extremely excessive. 1 toll centre per 10 miles seems more do-able but anyway, as I said, focus on the takeaway,
_________________

Karishma
Veritas Prep GMAT Instructor

Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >

GMAT self-study has never been more personalized or more fun. Try ORION Free!

GMAT Club Bot
Re: In order to finance road repairs, the highway commission of a certain &nbs [#permalink] 23 Oct 2018, 02:10

Go to page   Previous    1   2   [ 23 posts ] 

Display posts from previous: Sort by

In order to finance road repairs, the highway commission of a certain

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


cron
Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.