|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
29 Aug 2024, 04:24
Kudos
Bookmarks
ᅠᅠResearchers from a British university were investigating the impact of a company's public visibility on its charitable donations. In order to control for variables other than visibility, the researchers limited their study to companies that were continuously on the FTSE 100 Index (a popular stock index) from 1990 to September 2003.
ᅠᅠThe researchers conducted random surveys of British nationals in October 2003 and asked whether they had heard of each company. The high-visibility group was composed of only the 7 companies that more than 85% of the respondents had heard of. The low-visibility group was composed of only the 7 companies that less than 25% of the respondents had heard of. The reason that the respondents had heard of the companies in the high-visibility group rather than the companies in the low-visibility group was because the companies in the high-visibility group were larger, more financially successful, or associated with consumer brands and products.
ᅠᅠThe researchers evaluated the charitable giving of these companies according to the charitable donation percentage. The charitable donation percentage is the value of total monetary donations as a percentage of total pretax profits. The rationale for this standard was that it is difficult to evaluate the value of nonmonetary donations (for example, services), and donations as a percentage of profit were considered a better measure of corporate charity than the absolute value of corporate donations.
ᅠᅠThe researchers conducted random surveys of British nationals in October 2003 and asked whether they had heard of each company. The high-visibility group was composed of only the 7 companies that more than 85% of the respondents had heard of. The low-visibility group was composed of only the 7 companies that less than 25% of the respondents had heard of. The reason that the respondents had heard of the companies in the high-visibility group rather than the companies in the low-visibility group was because the companies in the high-visibility group were larger, more financially successful, or associated with consumer brands and products.
ᅠᅠThe researchers evaluated the charitable giving of these companies according to the charitable donation percentage. The charitable donation percentage is the value of total monetary donations as a percentage of total pretax profits. The rationale for this standard was that it is difficult to evaluate the value of nonmonetary donations (for example, services), and donations as a percentage of profit were considered a better measure of corporate charity than the absolute value of corporate donations.
25%: Yes
2.5%: Yes
0.25%: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
53% (02:33) correct
47%
(02:35)
wrong
based on 1282
sessions
History
Date
Time
Result
Not Attempted Yet
For each of the following percentages, select Yes if the percentage is greater than the mean charitable donation percentage of each visibility group in every year represented in the graph. Otherwise, select No.
| Yes | No | |
| 25% | ||
| 2.5% | ||
| 0.25% |
ShowHide Answer
Official Answer
25%: Yes
2.5%: Yes
0.25%: No
Companies in the low-visibility group gave a significantly greater value of total nonmonetary donations as a percentage of their total pretax profits than did companies in the high-visibility group.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
69% (01:54) correct
31%
(01:58)
wrong
based on 1052
sessions
History
Date
Time
Result
Not Attempted Yet
Before the study, the researchers hypothesized that the value of total charitable donations as a percentage of total pretax profits would be positively correlated with the public visibility of the company that gave the donation. Assuming that the information provided in the tabs is correct, which one of the following claims, if true, would most undermine this hypothesis?
| Companies in both the high- and low-visibility groups gave approximately the same value of total nonmonetary donations as a percentage of their total pretax profits. | |
| Companies in the low-visibility group gave approximately the same amount of nonmonetary donations as did companies in the high-visibility group. | |
| Companies in the low-visibility group gave a significantly greater value of total nonmonetary donations as a percentage of their total pretax profits than did companies in the high-visibility group. | |
| Companies in the high-visibility group gave a significantly greater value of total nonmonetary donations as a percentage of their total pretax profits than did companies in the low-visibility group. | |
| Companies in the high-visibility group gave significantly more in nonmonetary donations than companies in the low- visibility group. |
ShowHide Answer
Official Answer
Companies in the low-visibility group gave a significantly greater value of total nonmonetary donations as a percentage of their total pretax profits than did companies in the high-visibility group.
A company that exactly 92% of the respondents have heard of but that was not in the 1996 FTSE 100 Index: Low visibility/Not included
A company that exactly 13% of the respondents have heard of and that was in the FTSE 100 Index from 1990 to September 2003: Low visibility/Not included
A company that exactly 78% of the respondents have heard of and that was in the FTSE 100 Index from 1990 to September 2003: Low visibility/Not included
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
63% (01:18) correct
37%
(01:12)
wrong
based on 1112
sessions
History
Date
Time
Result
Not Attempted Yet
For each of the following descriptions of companies, select High visibility if the description is of a company that is included in the graph as part of the high-visibility group. Otherwise, select Low visibility/Not included in graph.
| High visibility | Low visibility/Not included | |
| A company that exactly 92% of the respondents have heard of but that was not in the 1996 FTSE 100 Index | ||
| A company that exactly 13% of the respondents have heard of and that was in the FTSE 100 Index from 1990 to September 2003 | ||
| A company that exactly 78% of the respondents have heard of and that was in the FTSE 100 Index from 1990 to September 2003 |
ShowHide Answer
Official Answer
A company that exactly 92% of the respondents have heard of but that was not in the 1996 FTSE 100 Index: Low visibility/Not included
A company that exactly 13% of the respondents have heard of and that was in the FTSE 100 Index from 1990 to September 2003: Low visibility/Not included
A company that exactly 78% of the respondents have heard of and that was in the FTSE 100 Index from 1990 to September 2003: Low visibility/Not included
Official Mock No. 4
2024-08-29_15-16-27.png [ 112.56 KiB | Viewed 10879 times ]
<br />
Attachment:
2024-08-29_15-16-27.png [ 112.56 KiB | Viewed 10879 times ]
Pro tip:
Combine official questions for familiarity with GMAT Club Tests for analytics and tougher Focus-level practice so the real exam feels manageable.
Explore →
