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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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i am confused what exactly is a terminus or termini.
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YashYashkratos
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.

Posted from my mobile device
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chetan2u

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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­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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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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1)

Revenue Condition: Annual revenue > $20 million

Connectivity Condition:Travel between ANY two cities using at most 2 flights

Line Projected Annual Revenue (>$20M)
Connectivity between any two cities (≤2 flights )
Answer
AD $20.1M > $20M Epster→Dewark still 3 flights ( E→C→B→D)NO (fails second requirement)
BE $18.8M < $20M fails first requirement NO ( fails first requirement)
DE $29.1M > $20M all pairs ≤2 flights YES

2)

Flight Line Proposed Revenue

Revenue Loss (10% of the annual revenue provided by all flight lines that share a terminus )
Net Revenue >$10M? Answer
AD$20.1M 10% of ($33+$19 +$18) = $7M $20.1 - $7 = $13.1M YESYES
AE$17.210% of ( $33+$18+17) = 7M$17.2 - $7 =10.2MYESYES
BE $18.810% of (33 +18 +27 +17) =9.6M$18.8 - 9.6 =9.2M NO NO


3)
Eliminate anything >$13M( implementation budget)
Eliminate Flight lines
BE ($15.4M)
CD ($20.1M)

Remaining: AD, AE, DE
total flight time between Cordell and Dewark
Cordell → Bionia → Dewark = 96 + 78 = 174 minutes

Lines, if implemented, would minimize the total flight time between Cordell and Dewark
AD: Creates New Route C->A→D = 63+85 = 148 min
AE: Doesn't help to create new Route
DE: Creates New Route C→E→D= 57+174 = 231 min

Answer: Line AD



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Attachment:
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Attachment:
Tav 1.jpg
Attachment:
Tab 2.jpg


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.

We are given that adding a new line will reduce the annual revenue provided by all flight lines that share a terminus with the new line by 10%. For each line, we will check whether the additional revenue of the line compensates for reduction of 10% in existing lines of the two termini and still leaves more than 10 million extra.


AD

Additional Revenue - 20
Reduction in Revenue - 3.3 + 1.87 + 1.8 = Less than 10
So more than 10 million will be extra.
Select YES

AE

Additional Revenue - 17
Reduction in Revenue - 3.3 + 1.87 + 1.76 = 6.9
So just a bit more than 10 million will be extra.
Select YES

BE

Additional Revenue - 18.8
Reduction in Revenue - 3.3 + 2.73 + 1.8 + 1.76 = More than 9
Less than 10 million will be extra.
Select NO
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Hey, in Q2 I dont understand why cant we add all and take 10% of the total. For instance

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

Cant we do total revenue to A and E and then take 10%?

Gemmie
­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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MegB07
Hey, in Q2 I dont understand why cant we add all and take 10% of the total. For instance

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

Cant we do total revenue to A and E and then take 10%?



Yes, you can add all the lines related to A and E and then calculate 10% of that combined total. There’s nothing wrong with that approach.
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Hi BB & Bunuel,

While attempting the official mock there were 3 new questions which appeared on that mock, which are not updated on GMAT club.

Requesting you to please update as well.

PFA the SS.
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GarvitGoel
Hi BB & Bunuel,

While attempting the official mock there were 3 new questions which appeared on that mock, which are not updated on GMAT club.

Requesting you to please update as well.

PFA the SS.

That question is posted HERE. Thank you!
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