The graph shows an analyst's assessment of how the cost of processing

Question

https://gmatclub.com/forum/download/file.php?id=81789 The graph shows an analyst's assessment of how the cost of processing capacity for a certain type of information management software depends on whether that capacity is provided using point-to-point interfaces, interfacing capabilities, or integration capabilities. Most information management software of this type has nonzero capacities provided by all three methods. Cost and capacity levels indicated by the levels of the curves at the far left end of the graph reflect minimums that are shared by all information management software of this type. The lines continue to the right with similar slopes beyond the points shown. Select from the drop-down menus the options that create the statement that most accurately reflects the information provided. For the information management software with GRAPH_1_PLACEHOLDER levels of processing capacity, it would be least expensive to add a small amount of processing capacity by means of GRAPH_2_PLACEHOLDER . ID: 700211 GMAT-Club-Forum-48c79vnd.png

KarishmaB · Accepted Answer

What does the graph show? There is an IMS (information management software). The graph shows how the cost of processing capacity for it depends on whether that capacity is provided using point-to-point interfaces, interfacing capabilities, or integration capabilities. The IMS needs to have some processing capacity. If we want higher capacity, then the cost for it will be more. How much more depends on what is used - point-to-point interfaces, interfacing capabilities, or integration capabilities The point-to-point (P2P) interface line is a thick black straight line with a constant slope. Every time you increase capacity by 1 unit, cost will increase by a fixed amount (say by 3 units). The slope of the line is high. The cost will be least for P2P only in case of very small amount of processing capacity. Thereafter, the P2P rises above both other graphs. The interfacing capabilities graph is the blue curve. As processing capacity increases, cost increases but not as sharply as in P2P. The slope of the graph is higher to begin with but it becomes a lot more flatter at high processing capacity. The integration capabilities graph is the dotted line which is very flat from the beginning itself. It starts at a higher cost (above the other two graphs) but as processing capacity increases, the cost increases minimally. For the information management software with _________ levels of processing capacity, it would be least expensive to add a small amount of processing capacity by means of __________ We are discussing "adding processing capacity". So if we were to add processing capacity, the cost incurred will be only the additional cost of increasing the capacity. Whatever cost was incurred at the beginning is not to be considered. The additional cost will be given by the slope of the graph. Say processing capacity has to be increased from the first red line to the second red line. The rise in the graph (additional cost) is minimum for integration capabilities. Say processing capacity has to be increased from the first green line to the second green line. The rise in the graph (additional cost) is minimum for integration capabilities. This will be true for all regions of the graph. Screenshot 2024-05-30 at 1.16.58 PM.png Hence, at all indicated levels of processing capacity, it would be least expensive to add capacity when using integration capabilities. ANSWER: all indicated levels integration capabilities GMAT-Club-Forum-uzx4d52d.png

chetan2u · Answer

'it would be least expensive to add a small amount of processing capacity by means of __2__' means we are looking for the relation between cost and processing capacity, and this would be given by the slope of lines and curves at any point. Least expensive would mean lesser cost when we increase the processing capacity, that is lesser of flattish slope as move towards right in the graph. Dwadesh72 , the answer to your question lies in the above colored portion. A straight line will always give you the same ratio, which is cost per unit of processing capacity here. The point-to-point interface is a straight line, so irrespective of the location on the line, the cost/processing unit will be the same. So, if we were asking for most expensive, the point-to-point interface would be correct but the first blank will then be all of the indicated. Coming to the question, Now, we know that we have to look for the slope of the curve or line. The dotted line has the least slope , so least expensive, and this makes it the correct option for the second blank. Now, the first option would require dividing the horizontal axis in two portions, left and right. Left gives lower levels of processing capacity(pc) and right gives us higher levels of pc. The slope of dotted line is not constant. It rather tends to move downwards in the higher levels, giving a negative cost. So, mathematically it would be 'Higher but not lower levels' for blank 1, if we look for a specific point. But, as we are comparing the three lines to each other ( the reason for using least expensive), the dotted line has the least slope through out and hence, ' all of the indicated ' would fit in in the first blank. GMAT-Club-Forum-odykli4m.png

ashutosh_73 · Answer

Question says '' least expensive to  add a small amount  of processing capacity '' 
In other words, question is asking for the rate of change(COST/PROCESSING CAPACITY) OR slope. 
Graph with broken line has the least slope all along.

Freddy12 · Answer

Question asks - What is the means by which we can add a tiny bit of processing capacity and keep the cost same.
Which basically means, keep the Y axis value almost the same by increasing the value of x axis.

We can see that this is possible only in "Integration capabilities" as the graph is almost a flat line.
This solves the second dropdown.

Now coming to the first dropdown, we see that for all values the integration capabilities is close to straight line. Thus "All of the indicated" is the correct answer!

rsrobin864 · Answer

Can you please help me understand what does the quest mean by levels of processing capacity?

Carcass · Answer

the cost of processing capacity for a certain type of information management software

In other words , how much is the software powerful to complete a task. To give you an example, if you have a certain editing software in your computer this software will complete the task FASTER if it is both assembled (the algorithm that works behind is well created) AND the CPU of you computer: if you have a 16 cores CPU or an old AMD Palomino.

In fact, in the end of the sentence we have:   apacity is provided using point-to-point interfaces, interfacing capabilities, or integration capabilities.

How much the software is good and the cost we have this software TO BE so good

sectan · Answer

Hi, could someone please help with this? The wording does sound a little vague

Vordhosbn · Answer

i guess the question here is how small are we talking here? i mean if you want to add only one or two units of capacity the line with steepest slope would cost the least. where as with the integration capabilities (the grey line) even if you spend 5 times as much you get 0 capacity.

all this to say, i can see how the grey line can be the best bang for you buck - especially at a certain point you pretty much get infinite capacity for the same amount of money. no markers on the axis, no units given - i agree with other poster that the question is vague?

Dwadesh72 · Answer

Can someone please explain why the following is not correct ?

For the information management software with  LOWER LEVELS BUT NOT THE SOFTWARE WITH HIGHER  levels of processing capacity, it would be least expensive to add a small amount of processing capacity by means of POINT TO  POINT INTERFACES  .

As per the graph the bold black line of point to point interfaces is at the left most end of the processing capacity as well as the bottom most end of the cost. Which should mean that at the least processing capacity the least expensive is POINT TO POINT INTERFACES 
Please help 
 KarishmaB ,  chetan2u ,  ScottTargetTestPrep ,  MartyMurray ,  GMATNinja ,  GMATWhizTeam

RenB · Answer

KarishmaB chetan2u can you help me what the dropdown means? What is meant by 'lower levels but not the software with higher' or 'higher levels but not the software with lower'? I am not able to ynderstand what these options mean wrt the question's context GMAT-Club-Forum-h5xwhrt2.png

chetan2u · Answer

When you write the relevant portion of the statement, it would be information management software with 'lower levels but not t he software with higher' levels of processing capacity So, we are looking at two parallel things as given in brown colored portion and both of these refer to the processing capacity. Now, the processing capacity is given by x-axis, so basically we are talking of the part of the curve when compared to the x-axis. Thus, looking at the grapgh, we can say 'lower levels but not the software with higher' would mean the left portion of the graph where the processing capacity is low. 'higher levels but not the software with lower' would mean the right portion of the graph where the processing capacity is high. GMAT-Club-Forum-0vlvwt2m.png

RenB · Answer

chetan2u  Can you please help me resolve this? I have a similar query

Dbrunik · Answer

having a pretty hard time wrapping my head around this one. point to point, on the low end, would increase processing ability by just a little bit at the lost cost levels. if you're on the higher end, why would you choose to add more integration capabilities than point to point if all you need is a tiny little bit?

MalachiKeti · Answer

Hi,
Pls see the graph that KarishmaB has attached. She has drawn two lines red in the region where capacity is less (towards left on X axis) and two brown lines in the region where capacity is more (towards right on X axis). We are only concerned with incremental capacity or cost of adding additional capacity and not initial capacity. This is explained by taking slope. In both these regions the answer is consistently integrated one being the cheapest. Hence thats the answer.

PeachSnapple1 · Answer

Got this correct, but still don't know what   mean. What minimums are they talking about? Are they referring to the very first point on the y-axis of the three lines. I swear the wording in the Data Insight section sometimes is even harder than that in the Verbal.

srik410 · Answer

Why cant "higher levels but not the software with lower" be correct with integration capabilities? It does seem like at the lower levels the cost is not the least expensive(because of the slight upward tilt of the dotted line).

In this question, does approximate answer win over accurate answer? Is that it?

In this question, does approximate answer win over accurate answer? Is that it?

cheshire · Answer

If you look at the other replies for this question they have images and explain it well.
But the reason is that we are adding a small amount of additional processing capability to the already existing amount. Not starting from zero.

Jayshree03 · Answer

KarishmaB

explain why for the first blank not the other two options? Whats the inference of those options and how should the graph look like for it to be true?

RJ3001274402 · Answer

The question says to add small amount of processing capacity in an IMS with  some level of processing.  Meaning this IMS has more than zero processing capacity. This means that the initial fixed cost for interfacing capabilities method or the integration capabilities method would have been already incurred. So no matter how small you are adding you are not starting from zero. in that case the  integration capabilities  is still the least expensive.

The graph shows an analyst's assessment of how the cost of processing

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