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Can I understand from you why Q2, say if we are looking at AD,<br />
Why do we have to consider AC? Shouldn't we look at AB, BD is already ok? It's gonna be a detour of AC, CB and BD?<br />
Also if we are considering AC, why BC is omitted?<br />
<br />
Same concept for BE - why do we need to consider BA?­
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Can I understand from you why Q2, say if we are looking at AD,<br />
Why do we have to consider AC? Shouldn't we look at AB, BD is already ok? It's gonna be a detour of AC, CB and BD?<br />
Also if we are considering AC, why BC is omitted?<br />
<br />
Same concept for BE - why do we need to consider BA?­
­Any line would result in a decrease of 10% in revenue at the terminals.

So line AD would mean that revenue generated from all flights converging at A and D would reduce by 10%.
A is connected to B and C, so reduction in revenue from line AB and AC.
D is connected to B alone, so reduction in revenue from line DB.


Similarly for all lines.
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JoeAa
Can I understand from you why Q2, say if we are looking at AD,<br />
Why do we have to consider AC? Shouldn't we look at AB, BD is already ok? It's gonna be a detour of AC, CB and BD?<br />
Also if we are considering AC, why BC is omitted?<br />
<br />
Same concept for BE - why do we need to consider BA?­
­Any line would result in a decrease of 10% in revenue at the terminals.

So line AD would mean that revenue generated from all flights converging at A and D would reduce by 10%.
A is connected to B and C, so reduction in revenue from line AB and AC.
D is connected to B alone, so reduction in revenue from line DB.


Similarly for all lines.
­
Can direct me where I can see I should include AC in the passage?  Also if so why BC we shouldn't count as well? 
I am super confused as to why we have to count AC, I mean really if this is a real biz it doesn't make any sense. And even if not, by playing counting all routes A can be linked then why BC is not included?
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Is it reasonable to invest time and energy on such questions on the actual test? I usually end up killing more than 10 minutes on these questions in total, that too with low accuracy. Can the experts guide, how to go about these questions? Or is it wise to ignore these kind of questions and invest that time on other questions?
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I also have the same question . It seems like one question will take away the entire 45 minutes .. :D...MartyMurray KarishmaB please guide..<quote option=""paradise1234"">Is it reasonable to invest time and energy on such questions on the actual test? I usually end up killing more than 10 minutes on these questions in total, that too with low accuracy. Can the experts guide, how to go about these questions? Or is it wise to ignore these kind of questions and invest that time on other questions?</quote>­
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i am confused what exactly is a terminus or termini.
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i am confused what exactly is a terminus or termini.

Terminus is start point or end point of a way. It could be railway terminal or airport terminal.
Termini is nothing but plural of terminus.

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Explanation for Question 1

1. SkySoarer has decided its new flight line should have a projected annual revenue of more than $20 million. The implementation of the line should also make it possible to travel between any two of the currently serviced cities by taking at most two flights. For each of the following proposed new lines, if, based on the information provided, the line satisfies these requirements, select Yes. Otherwise, select No.

Line AD

To see whether line AD satisfies the two requirements, we can first go to tab New Flight Lines to see whether the line has a projected annual revenue of more than $20 million. Checking the table, we see that AD has a projected annual revenue of $20.1 million. So, AD satisfies the first requirement.

Then, to see whether AD satisfies the second requirement by making it possible to travel between any two of the currently serviced cities by taking at most two flights, we can go to the diagram on tab Current Flights to see what happens to the routes if we add a direct flight between Abron and Dewark.

Doing so, we see that with a direct flight between Abron and Dewark, traveling from Epster to Dewark still requires taking three flights. So, line AD does not satisfy the second requirement.

Select No.

Line BE

To see whether line BE satisfies the first requirement, we check the table on tab New Flight lines and find that BE has a projected annual revenue of $18.8 million. That's less than $20 million. So, line BE does not satisfy the first requirement.

Select No.

Line DE

To see whether line DE satisfies the first requirement, we check the table on tab New Flight lines and find that DE has a projected annual revenue of $29.1 million. That's more than $20 million. So, line DE satisfies the first requirement.

To see whether DE satisfies the second requirement, we go to the diagram on tab Current Flights to see what happens to the routes if we add a direct flight between Dewark and Epster.

Doing so, we see that with a direct flight between Dewark and Epster, traveling from any of the cities to any other takes at most two flights. That it does is pretty straightforward to see since, with a direct line between Dewark and Epster, the pentagon of flight lines is connected on all five sides. So, any city is at most three sides away from any other city in one direction and two sides away from the same city in the other direction. So, line DE satisfies the second requirement as well.

Select Yes.

Correct Answer
No, No, Yes

Explanation for Question 2

2. For each of the following proposed new flight lines, select Yes if, based on the information provided, implementing the line would increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million. Otherwise, select No.

Line AD

To see whether the addition of this line would increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million, we can check the parts of the provided information that involve revenue.

First, let's find the projected revenue for line AD in the table on tab New Flight Lines. It's $20.1 million.

Our job isn't done yet though since tab New Flight Lines also provides the following information:

    SkySoarer has projected that adding a new line while making no other changes will reduce the annual revenue provided by all flight lines that share a terminus with the new line by 10%.

So, we have to determine the total reduction in revenue for the current flight lines to Abron and Dewark. We can find that information on the diagram on tab Current Flights.

Abron to Bionia: 33.1; 10% of 33.1 is approximately 3.3

Abron to Cordell: 18.7; 10% of 18.7 is approximately 1.9

Dewark to Bionia: 18.1; 10% of 18.1 is approximately 1.8

3.3 + 1.9 + 1.8 = 7

20.1 - 7 = 13.1

Since 13.1 is significantly greater than 10, we don't have to worry about the fact that we rounded when calculating the 10% reductions since we can tell that adding this line will for sure increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million.

Select Yes

Line AE

From tab New Flight lines, the projected annual revenue for this line is $17.2 million.

The reduction in revenue for other lines resulting from the addition of this line can be calculated as follows:

Abron to Bionia: 33.1; 10% of 33.1 is approximately 3.3.

Abron to Cordell: 18.7; 10% of 18.7 is approximately 1.9.

Epster to Cordell: 17.6; 10% of 17.6 is approximately 1.8.

3.3 + 1.9 + 1.8 = 7

17.2 - 7 = 10.2

10.2 is greater than 10, and we rounded up when calculating 10% of 18.7 and 17.6. So, even though we rounded, we can be confident that the addition of this line will result in a net increase in revenue of more than $10 million.

Select Yes.

Line BE

From tab New Flight lines, the projected annual revenue for this line is $18.8 million.

The reduction in revenue for other lines resulting from the addition of this line can be calculated as follows:

Bionia to Abron: 33.1; 10% of 33.1 is approximately 3.3.

Bionia to Cordell: 27.3; 10% of 27.3 is approximately 2.7.

Bionia to Dewark: 18.1; 10% of 18.1 is approximately 1.8.

Epster to Cordell: 17.6; 10% of 17.6 is approximately 1.8.

3.3 + 2.7 + 1.8 + 1.8 = 9.6

18.2 - 9.6 = 8.6

8.6 is significantly less than 10. So, even though we rounded when calculating the 10% reductions, we can be confident that the addition of this line will NOT result in a net increase in revenue of more than $10 million.

Select No.

Correct Answer
Yes, Yes, No

Explanation for Question 3

3. SkySoarer would like to add a new flight line that decreases the minimum total flight time for a trip between Cordell and Dewark. An implementation budget for the new line has been set at $13 million. Based on the information provided, which of the following lines, if implemented, would minimize the total flight time between Cordell and Dewark within the budget constraint?

Line AD

Line AE

Line BE

Line CD

Line DE


To narrow down our choices, we can first eliminate any of the lines that have implementation budgets over $13 million since doing so is simple.

Checking the table on tab New Flight lines, we see that BE and CD have implementation budgets over $13 million. So, we can eliminate those two and are left with AD, AE, and DE.

Now, since the addition of the new line must reduce the minimum total flight time for a trip between Cordell and Dewark, let's see what the current minimum flight time for a trip between Cordell and Dewark is.

Since the only flight into Dewark is the one from Bionia, we know that the 78 minutes for a trip from Bionia to Dewark must be included in the trip from Cordell to Dewark. Then, the quickest way to get from Cordell to Bionia is to take the direct flight between the two cities, which takes 96 minutes. So, currently, the minimum total flight time from Cordell to Dewark is 78 + 96 = 174 minutes.

Now let's check what happens when we add each of the possible lines.

Line AD

From the diagram on tab Current Flights, 63 minutes from Cordell to Abron

From the table on tab New Flight lines, 85 minutes to get from Abron to Dewark

85 + 63 = 148

148 is less than 174. So, the addition of this line decreases the minimum total flight time for a trip between Cordell and Dewark. However, the question asks which line "would minimize the total flight time between Cordell and Dewark." So, we may need to find the shortest route, the one that actually minimizes the time. It may be that the question isn't worded ideally, and really we just need to find a route that's shorter than the current shortest route, but let's check the other two remaining choices to see what we get.

Keep.

Line AE

Adding a line from Abron to Epster does not help at all with getting from Cordell to Dewark.

Eliminate.

Line DE

Adding a line from Dewark to Epster allows us to get from Cordell to Dewark in the following amount of time.

From the diagram on tab Current Flights, 57 minutes from Cordell to Epster

From the table on tab New Flight lines, 174 minutes to get from Epster to Dewark

Without doing any math, we can tell that 57 + 174 is greater than the current minimum total flight time of a trip from Cordell to Dewark of 174 minutes.

So, the addition of line DE does not shorten the time required for traveling from Cordell to Dewark.

Eliminate.

Correct Answer
Line AD
­
MartyMurray you're taking 10% of the average annual revenue but the question talks about total revenue. The question says- "SkySoarer has projected that adding a new line while making no other changes will reduce the annual revenue provided by all flight lines that share a terminus with the new line by 10%." So how do we get to annual revenue when we dont have the total no of flights for the route? 
Isnt the reduction in total revenue for line AB = 0.1(33.1)* no of flights on that route and likewise for all other routes. Just wanted to understand ho you're doing away with the no of flights while solving.
 ­
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JoeAa
Can I understand from you why Q2, say if we are looking at AD,<br />
Why do we have to consider AC? Shouldn't we look at AB, BD is already ok? It's gonna be a detour of AC, CB and BD?<br />
Also if we are considering AC, why BC is omitted?<br />
<br />
Same concept for BE - why do we need to consider BA?­
­Any line would result in a decrease of 10% in revenue at the terminals.

So line AD would mean that revenue generated from all flights converging at A and D would reduce by 10%.
A is connected to B and C, so reduction in revenue from line AB and AC.
D is connected to B alone, so reduction in revenue from line DB.


Similarly for all lines.
­
Can direct me where I can see I should include AC in the passage? Also if so why BC we shouldn't count as well?
I am super confused as to why we have to count AC, I mean really if this is a real biz it doesn't make any sense. And even if not, by playing counting all routes A can be linked then why BC is not included?

Hi JoeAa, I had the same confusion before,I think I can explain why now. As the argument say:SkySoarer has projected that adding a new line while making no other changes will reduce the annual revenue provided by all flight lines that share a terminus with the new line by 10%.. So we need to calculate all airlines shared the same terminus.And In real biz,it exactly make sense, if we add AD, the airport A service level unchanged (or we can say the ability to afford the same flights quantity ),so it may influence the other flight which also via airport A decrease.

Posted from my mobile device
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Whenever I encounter this kind of question I always think that "One Time implementation cost" need to be calculated into/deducted off annual revenue as well. What a simple mistake...
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­1. SkySoarer has decided its new flight line should have a projected annual revenue of more than $20 million. The implementation of the line should also make it possible to travel between any two of the currently serviced cities by taking at most two flights. For each of the following proposed new lines, if, based on the information provided, the line satisfies these requirements, select Yes. Otherwise, select No.

(i) Only travelling from D to E is now requiring >2 flights

(ii) Annual revenue > $20M
=> Lines AD, CD, DE

AD: No (D to E still requires 3 flights => No)

BE: No (not meeting $20M revenue requirement)

DE: Yes
+ $20M revenue requirement: yes
+ There is now a direct flight between D & E


2. For each of the following proposed new flight lines, select Yes if, based on the information provided, implementing the line would increase the total annual revenue generated by all SkySoarer flight lines by more than $10 million. Otherwise, select No.

Line AD => Yes
AD's revenue: $20.1 => Reduction must be < $10.1
+ Total revenue related to A: 33.1 + 18.7 = 51.8 => 10%: 5.18
+ Total revenue related to D: 18.1 => 10%: 1.81
==> Total reduction: 5.18 + 1.81 < 10.1

Line AE => Yes
AE's revenue: $17.2 => Reduction must be < $7.2
+ Total revenue related to A: 33.1 + 18.7 = 51.8 => 10%: 5.18
+ Total revenue related to E: 17.6 => 10%: 1.76
==> Total reduction: 5.18 + 1.76 < 7.2

Line BE => No
AE's revenue: $18.8 => Reduction must be < $8.8
+ Total revenue related to B: 33.1 + 18.1 + 27.3 = 78.5 => 10%: 7.85
+ Total revenue related to E: 17.6 => 10%: 1.76
==> Total reduction: 7.85 + 1.76 > 8.8

3. SkySoarer would like to add a new flight line that decreases the minimum total flight time for a trip between Cordell and Dewark. An implementation budget for the new line has been set at $13 million. Based on the information provided, which of the following lines, if implemented, would minimize the total flight time between Cordell and Dewark within the budget constraint?
Line AD



Set up budget = 13
=> Line AD, AE and DE

Current flights from C to D:
+ C-B-D
+ C- A-B-D

(i) AD: 85
C to D: C-A-D: 63 + 85 = 148

(ii) AE: Won't create any new flight arrangment

(iii) DE: 174 (too long, already >148 compared to option AD)­
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paradise1234
Is it reasonable to invest time and energy on such questions on the actual test? I usually end up killing more than 10 minutes on these questions in total, that too with low accuracy. Can the experts guide, how to go about these questions? Or is it wise to ignore these kind of questions and invest that time on other questions?
I have encountered the same confusion, but this question appears in the third question. I am worried that skipping this question will affect the following questions and the final score. So what is your strategy? pls help :cry:
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Why does question 2 not include the implementation cost?
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Why does question 2 not include the implementation cost?

Because it talks about only annual revenue, not costs.
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What is an acceptable total time for this MSR? Experts, please advice.
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What is an acceptable total time for this MSR? Experts, please advice.

7-8 mins is fine for the 3 questions. That gives you about 2 mins to evaluate the tab content and about 2 mins per question.
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