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Over the past seven years, private college tuition rates have increase

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Over the past seven years, private college tuition rates have increase  [#permalink]

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New post Updated on: 01 Nov 2018, 06:55
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Over the past seven years, private college tuition rates have increased, resulting in a large decrease in private college attendance across the country. Private college revenues, however, have progressively increased in each of the seven years during this period, and researchers predict further increases in the years to come.

Which of the following, if true, offers the best explanation for the situation described above?

A. Most private colleges increase tuition rates approximately once every two years.
B. Attendance at vocational schools generally exceeds attendance at private colleges in most cities.
C. The increase in tuition rates at private colleges has influenced many prospective students to seek a state scholarship to attend a public university.
D. The decrease in students attending private colleges over the last seven years has been more than offset by the increases in tuition.
E. Private colleges gain a larger percentage of their revenue from alumni contributions than do public universities.

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Originally posted by vinay589 on 16 Apr 2017, 08:42.
Last edited by gmat1393 on 01 Nov 2018, 06:55, edited 1 time in total.
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Re: Over the past seven years, private college tuition rates have increase  [#permalink]

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New post 16 Apr 2017, 19:02
3
Situation

1) Over the past seven years, private college tuition rates have increased
2) Private college attendance has gone down

But, Private college revenues increased in each of the seven years during this period
Researchers predict further increases in the years to come.

Which of the following, if true, offers the best explanation for the situation described above?

(A) Most private colleges increase tuition rates approximately once every two years.- But revenue has increased each of the seven years
(B) Attendance at vocational schools generally exceeds attendance at private colleges in most cities. - Irrevalent to the issue at hand
(C) The increase in tuition rates at private colleges has influenced many prospective students to seek a state scholarship to attend a public
university.- Considering scholarship leads to subsidized education, this doesn't explain the increase in revenue
(D) The decrease in students attending private colleges over the last seven years has been more than offset by the increases in tuition.- Correct. Increase in tuition rates >Decrease in Attendence => Revenue goes up
(E) Private colleges gain a larger percentage of their revenue from alumni contributions than do public universities.- Doesn't justify any future increases in revenue or a reason for this trend to continue
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Re: Over the past seven years, private college tuition rates have increase  [#permalink]

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New post 22 Apr 2017, 08:51
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vinay589 wrote:
Over the past seven years, private college tuition rates have increased,
resulting in a large decrease in private college attendance across the country. Private college revenues, however, have progressively
increased in each of the seven years during this period, and researchers predict further increases in the years to come.
Which of the following, if true, offers the best explanation for the situation described above?
(A) Most private colleges increase tuition rates approximately once every two years.
(B) Attendance at vocational schools generally exceeds attendance at private colleges in most cities.
(C) The increase in tuition rates at private colleges has influenced many prospective students to seek a state scholarship to attend a public
university.
(D) The decrease in students attending private colleges over the last seven years has been more than offset by the increases in tuition.
(E) Private colleges gain a larger percentage of their revenue from alumni contributions than do public universities.


We want to know why colleges revenues have been increasing if number of students have been increasing.

Choice D says that decrease in attendence is MORE THAN OFFSET by tution fee.

example:
earlier 100 students and tution fee per student $50k. Hence total revenue = $5000k
Now only 70 students but tution fee per student $90k. Hence total revenue = $6300k

Profit in revenue = $1300k
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Re: Over the past seven years, private college tuition rates have increase  [#permalink]

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New post 10 Oct 2018, 10:17
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Re: Over the past seven years, private college tuition rates have increase   [#permalink] 10 Oct 2018, 10:17
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