chunjuwu wrote:
From 1973 to 1976, total United States consumption of cigarettes increased 3.4 percent, and total sales of chewing tobacco rose 18.0 percent. During the same period, total United States population increased 5.0 percent.
If the statements above are true, which of the following conclusions can be properly drawn?
(A) United States manufacturers of tobacco products had higher profits in 1976 than in 1973.
(B) Per capita consumption of cigarettes in the United States was lower in 1976 than in 1973.
(C) The proportion of nonsmokers in the United States population dropped slightly between 1973 and 1976.
(D) United States manufacturers of tobacco products realize a lower profit on cigarettes than on chewing tobacco.
(E) A large percentage of United States smokers switched from cigarettes to chewing tobacco between 1973 and 1976.
Consumption of cigs increased 3.4%
Sales of tobacco rose 18%
Population increased 5%
(A) United States manufacturers of tobacco products had higher profits in 1976 than in 1973.
Nothing is known about the cost of production and the revenue earned. We cannot say anything about profits.
(B) Per capita consumption of cigarettes in the United States was lower in 1976 than in 1973.
True.
Per capita consumption is given by Consumption/Population.
How many people actually smoke is not the concern.
Per capita consumption in 1973 = C/P
Per capita consumption in 1976 = C(1 + 3.4/100) / P(1 + 5/100) = .985 * (C/P)
So per capita consumption in 1976 is less than per capita consumption is 1973.
(C) The proportion of nonsmokers in the United States population dropped slightly between 1973 and 1976.
As we said before, we cannot find the proportion of actual smokers/non smokers.
(D) United States manufacturers of tobacco products realize a lower profit on cigarettes than on chewing tobacco.
Again, we need the cost of production and revenue to talk about profits.
(E) A large percentage of United States smokers switched from cigarettes to chewing tobacco between 1973 and 1976.
We cannot establish this. Whether number of smokers increased/decreased we don't know. Same goes for number of tobacco chewers.
Answer (B)