It is currently 13 Dec 2017, 18:46

Decision(s) Day!:

CHAT Rooms | Ross R1 | Kellogg R1 | Darden R1 | Tepper R1


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

Events & Promotions in June
Open Detailed Calendar

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

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

Hide Tags

3 KUDOS received
Intern
Intern
avatar
S
Joined: 28 Mar 2016
Posts: 12

Kudos [?]: 30 [3], given: 18

Location: India
Concentration: International Business, Nonprofit
Over the past seven years, private college tuition rates have increase [#permalink]

Show Tags

New post 16 Apr 2017, 07:42
3
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

65% (01:07) correct 35% (01:20) wrong based on 110 sessions

HideShow timer Statistics

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.
[Reveal] Spoiler: OA

_________________

Kudos for glory of Satan or Jesus or Allah or Krishna or Shiva or Brahma or Buddha or Vishnu or Abraham or Flying spaghetti monster :P

Kudos [?]: 30 [3], given: 18

2 KUDOS received
Manager
Manager
avatar
G
Joined: 18 Jan 2017
Posts: 84

Kudos [?]: 72 [2], given: 375

Location: India
Concentration: Finance, Economics
GMAT 1: 700 Q50 V34
GMAT ToolKit User CAT Tests
Re: Over the past seven years, private college tuition rates have increase [#permalink]

Show Tags

New post 16 Apr 2017, 18:02
2
This post received
KUDOS
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

Kudos [?]: 72 [2], given: 375

2 KUDOS received
Moderator
avatar
D
Joined: 21 Jun 2014
Posts: 956

Kudos [?]: 490 [2], given: 113

Location: India
Concentration: General Management, Technology
GMAT 1: 540 Q45 V20
GPA: 2.49
WE: Information Technology (Computer Software)
Premium Member CAT Tests
Re: Over the past seven years, private college tuition rates have increase [#permalink]

Show Tags

New post 22 Apr 2017, 07:51
2
This post received
KUDOS
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
_________________

---------------------------------------------------------------
Target - 720-740
http://gmatclub.com/forum/information-on-new-gmat-esr-report-beta-221111.html
http://gmatclub.com/forum/list-of-one-year-full-time-mba-programs-222103.html

Kudos [?]: 490 [2], given: 113

Re: Over the past seven years, private college tuition rates have increase   [#permalink] 22 Apr 2017, 07:51
Display posts from previous: Sort by

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

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


cron

GMAT Club MBA Forum Home| About| Terms and Conditions| 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®.