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655-705 (Hard)|   Word Problems|                  
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The answer should be E. We should consider all the possibilities of a linear relationship, y = mx + b, where m is the slope, ranging from negative values to positive values.
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Freddy12
GMATCoachBen Can you please post the official solution?
I agree that the question should make it clearer that they mean a positive linear relationship in statement 2, but it is an OG question, so we have to live with it. Above, I see that some people speculated that it's not an official question, but it was originally released along with 10 other "verbal/logic/diagram/table" questions in the online question bank of the 2023-2024 official guide for the new focus edition. These questions feel different from most data sufficiency questions, and are labeled "Inference" in the official solution.

Here's the official explanation below.

I believe the logic of the question writer is that a positive correlation is implied in statement 2. In a real-life business situation, a negative relationship between forecast and actual values would be surprising and would typically be described explicitly as negative. I do agree that it's normally best to take things literally and not make assumptions on the GMAT, so this question wording should be clearer.
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Thinking it through, I think it doesn't matter if it's negative or positive correlation because it's constant. I'm no expert but this is how my brain makes sense of it.

If actual sales in March were 30 or 10 (above or below projected of 16), April would have to follow suit and be either below or above the projection at an even amount right? Linear constant correlation is fixed right?

So if March is over projection by 14, then April also has to be over projection by 14. If March is below projection by 6, then April is below projection by 6. Since April projection is 20, April actual sales will always be more than March's actual sales no matter what. If it's above projection for 1, it's above projection for all. If it's below projection for 1, it's below projection for all at a fixed amount.
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Wierd question..
Not clear at all why constant linear relation would mean y=kx
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Bunuel karishma

What about negative proportional relation for some given constant relation:
Forecasted: Actual
ForecastedActual
1224
1620
1620
2016
2016
2412

In this case, relationship is still linear but the answer to the question becomes No. Hence, in the context, when direction of linear relationship is not specified, how can we PRESUME that relationship is directily positively proportional and another assumption is that the relation originates from Origin ONLY.


GMATCoachBen
Quote:
Video solution here:


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