Once again, our annual management retreat will be held in Bloomsbury.

Question

To: Regional Office Managers
From: Chief Operations Officer
RE: Travel planning

Once again, our annual management retreat will be held in Bloomsbury. In preparation for this year’s retreat, all Regional Office Managers (ROMs) will be responsible for arranging the travel reservations for all Level 2 managers within his or her Region. You may delegate that task should you wish.

ROMs will receive a research memorandum from the Logistics Division providing the average (arithmetic mean) airfare from the 6 Regions to Bloomsbury. While ROMs should use that average airfare as a guide, we anticipate that there may be some variation in ticket prices based upon the specifics of travel arrangements. As such, Regional offices will be reimbursed for the full cost of any plane ticket priced within 1 (one) standard deviation of the average airfare from its region to Bloomsbury, inclusive. For any ticket priced more than 1 (one) standard deviation above the mean, regional offices will be reimbursed up to the average airfare from your region to Bloomsbury. For any ticket priced 1 (one) standard deviation or more below average, in addition to full reimbursement of the ticket cost, regional offices will receive a “Budget Bonus” of 50% of the difference between the ticket price and the average airfare from your region to Bloomsbury.

Apt0810 · Answer

1)Yes,since Westland has the lowest sample size and lowest corresponding mean
No,since it is not written anywhere that only L2 managers will go for retreat
Yes,since HR and other teams are also supporting in the booking

2)a)Yes,since the difference between the Avg and 1 SD is 175, so tickets worth 150 will be under the budget bonus,hence the total budget bonus will be (175-150)*18(Number of tickets)= 450$
b)No,this is not the case here
c)Yes the mean is 45.83 and is less than mean of three individual regions

3) Tickets within 1 SD of mean are fully reimbursed ,so per the chart 3 the tickets worth 150$ & 210$ will be fully reimbursed,so the probability is (18+4)/(18+4+8)= 11/15

Posted from my mobile device

Ryanh7788 · Answer

Did anyone ever get a clear answer for Item 11 Pt 3?

The combined mean airfare of all the researched regions is less than the mean airfare for three of the regions individually.

It seemed unclear and if you choose 3 of the highest mean averages, it is true. however if you choose the lowest of the 3 mean averages, it is false....

mmdfl · Answer

Question 2 - second item
"The two regions with the least sample size also had the least difference between the most and least expensive airfare found during research." What are the two regions? If im reading the graph correct, the sample size is the dashed line with the black circle marker, and the lowest point corresponds to Midwest, while the second lowest can't be determined since Northwest, South and Plain seems to have the same sample size (400). Any clue what im missing?
 Question 2 - third item
I had the same reasoning as  Ryanh7788 . I choose "False" because the statement would only be true if it were true no matter which three regions we are selecting, which is not that case... The OE according with OP is "True", thou...

cathyjiang04 · Answer

Can you explain the 2nd and 3rd parts of the question 2, plz?

Sajjad1994 · Answer

Statement 2:  Standard deviation is the measure of the spread, or range, of the numbers within a set. Based on Memo #2, this may suggest that it is true that the two regions with the least sample size also had the least difference between the most and least expensive airfare found during research, the information provided in the question gives no insight into how many standard deviations were required to encompass all the data points. Therefore, it is impossible to know the distance between the greatest and least values for the information.

The statement is False.

Statement 3:  This question asks about the averages of the researched airfare prices, so look at Memo #2. Determine the combined mean airfare of the researched regions by finding the sum of total amount for each of the regions individually, and then dividing that number by the total number of the sample size. The combined mean airfare for the researched regions is $271.42. This is less than the mean airfare for the Northeast, Mid-Atlantic, and Plains regions.

The statement is True.

DrAnkita91 · Answer

please can anyone explain question 3?

Sajjad1994 · Answer

Official Explanation

3. If one of the tickets purchased by the West Region’s Level 2 managers were selected at random, what is the probability that it is eligible to be fully reimbursed?

Explanation

Memo #1 explains the company’s airfare reimbursement policy, Memo #2 details the average, standard deviation, and sample size for flights from each region to Bloomsbury, and Email #1 describes the number of tickets purchased at various prices in the West region. According to Memo #1, any ticket priced at or below one standard deviation above the mean is eligible for reimbursement. According to Memo #2, airfare from the West region averages $200 per ticket with a standard deviation of $25. Therefore, any ticket priced at or below $225 is fully reimbursed. According to Email #1, 22 of the 30 tickets purchased in the West region are priced within this range. Thus, the probability a randomly selected ticket is eligible to be fully reimbursed is , which reduces to .

The correct answer is (C)

cathyjiang04 · Answer

“regional offices will receive a “Budget Bonus” of 50% of the difference between the ticket price and the average airfare from your region to Bloomsbury.”
So as per 2)a, shouldn't the total budget bonus be (175-150)*18(Number of tickets)*50%= 225$ ?

shrutipardikar · Answer

For question 2, part 3, the average comes out to be 415. Only 2 regions are less than that. Can you provide a solution

karanagarwal02 · Answer

i need q1 part 1 explanation im confused midwest and west looks kinda similar

Pr4n · Answer

This is an ambiguous questions, in the first sets of question if you really look closely to the graph than it might seem that the point plotted for the west is less than midwest (but maybe that is a mistake from my end, I am overthinking while reading as it is not upto scale).

Then in the second set of questions, mean of all is less than mean of 3. While solving i did though about the regions which are more than mean of all and chose False, as they are not true for every set of 3 regions. It needs to be framed better, I don't think Official GMAT questions will have such ambiguity. The language used could be tough, but this is just plain confusing in my opinion.

And out of all the questions asked, i got only these 2 things wrong which is really frustating on other note.

Sharmishtha66 · Answer

Can someone please explain, Q2 part 1, what am I missing?
As the memorandum 1 says 50% of the difference, which is = 0.5*25*18 (50% * difference * number of tickets) = 225

ggmatgg · Answer

Dif(ticket price= 150, average airfare price in the West = 200) = 50

NOT dif(ticket price = 150, one standard deviation below = 175) = 25

BinodBhai · Answer

Q2, 3rd point is weird.. how would I know which 3 regions??

krsatyam15 · Answer

Sajjad1994  
pls anyone explain Q3
If one of the tickets purchased by the West Region’s Level 2 managers were selected at random, what is the probability that it is eligible to be fully reimbursed?

Sajjad1994 · Answer

Hi

This is explained  here.

Thank you!

KRNSW · Answer

I think the language for Statement no. 1 in Question no. 1 should be corrected. Mid and west both have the same average fair. SO, technically, there is no other region with fare lower than the avergae fare of Mid region.

Sajjad1994

Show Spoiler

Attachment:

22.jpg

Attachment:

11.jpg

Yes	No
		No region had a lower average (arithmetic mean) airfare to Bloomsbury than the Midwest.
		Only Level 2 managers will attend the management retreat.
		The Regional Office Manager need not make the reservations personally.

	\(\frac{4}{15}\)
	\(\frac{9}{15}\)
	\(\frac{11}{15}\)
	\(\frac{12}{15}\)
	\(\frac{14}{15}\)

Once again, our annual management retreat will be held in Bloomsbury.

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True	False
		The West Region will receive a “Budget Bonus” of $450.
		The two regions with the least sample size also had the least difference between the most and least expensive airfare found during research.
		The combined mean airfare of all the researched regions is less than the mean airfare for three of the regions individually.

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Once again, our annual management retreat will be held in Bloomsbury.

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