The six regions in which Techtyx Appliance Company sells appliances ar

Question

https://gmatclub.com/forum/download/file.php?mode=view&id=51212 The six regions in which Techtyx Appliance Company sells appliances are labeled A through F in the graph. The size of each circle and the corresponding number in the circle indicate the proportion of Techtyx customer transactions in that region. The position of each circle‘s center relative to the vertical axis shows how many different product types are marketed in the region, and the position relative to the horizontal axis shows last year’s sales in thousands of euros for the region. For each of the following, use the drop-down menu to create the most accurate statement on the basis of the information provided. 1. Among the six regions, the one with the most Techtyx customer transactions ranks GRAPH_1_PLACEHOLDER in the number of product types marketed. 2. The region for which the value of the average transaction was greatest is region GRAPH_2_PLACEHOLDER GMAT QbankIR.jpg

DmitryFarberMPrep · Accepted Answer

Let's start with a simpler scenario. If you made $1,000 in sales, we'd find the average value of your transactions by dividing that total by the number of transactions. So if you had 10 transactions, the average would be $100, but if you had 50 transactions, the average would be $20, right?

Here, we aren't told the number of transactions, but we're told the  proportion  of transactions in each region. So if Techtyx had 100 transactions, 5 of them would have been in E and 33 would have been in C. We can use a Smart Number like this, or we can simply divide by the original (decimal) proportion. We'll get different numbers with those two different approaches, but the  relative  values for the different regions will stay the same. So if we estimate that E had sales of $750K and C had sales of $800K, their averages per transaction would be $800K/33 and $750/5 (if we plug in #s) or $800K/.33 and $750K/.05 (if we use the decimals). In either case, E's number is much bigger than C's (and all the rest). We can see this quickly by noting that E's sales are among the highest, while its number of transactions is the lowest. Since none of the other regions have a lower denominator (fewer transactions), we just have to compare to the two regions (C and F) that have higher numerators (higher $ sales). F has 3 times as many transactions as E. To match E's average, F would have to have sales around $2,250K. C would have to have over 6 times E's sales, or over $4,500K.!

Let me know if that helps.

spal0007 · Answer

2. The region for which the value of the average transaction was greatest is region_______ ..Please explain... as there is only four options

First one I understand but m not getting 2nd one

Apt0810 · Answer

A) Fourth - easily arrange the elements based on their vertical position in order to get the answer.
B) E - We have to assume a total of 100 or n transactions and then see the transaction value for each circle based on the number present inside it and then do a total sales by the total transactions to get the answer

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Sajjad1994 · Answer

Official Explanation

RO1: Recognize

The graph indicates the relative number of customer transactions by the size of the circles and the numbers within—with larger circles and numbers indicating a greater proportion of Techtyx’s total transactions. The region with the most transactions, C, is lower on the vertical axis than D, E, and F, indicating that C has the fourth greatest number of product types marketed there.

The correct answer is fourth.

RO2: Infer

The value of the average transaction in a region can be derived by dividing the total sales in that region by the number of transactions in that region. Though we do not have sufficient information to determine the number of transactions in a given region, we do know the relative proportions of all of Techtyx’s transactions. Therefore, the region with the greatest average transaction value would be the one with the largest ratio of sales to proportion of total transactions. For A, that ratio is  \small \frac{500}{.29}\approx 1,724  ; for C,  \small \frac{800}{.33}\approx 2,424  ; for E,  \small \frac{700}{.05}= 14,000  ; and for F,  \small \frac{900}{.15}= 6,000.

The correct answer is E.

dearcheriand · Answer

Sales means the value of total sales and not the number if sales. Trasaction is the number of sales

ADIsevenfifty · Answer

how long does it take to solve this problem . I am taking more than 4 mins.

mmdfl · Answer

gmatninja solved this https://youtu.be/tE0_JvDsRqc?list=PLiaK ... puFb&t=739

DhruvBadaya · Answer

The second one basically asks average transaction, which is equal to  TOTAL SUM OF ALL TRANSACTION DIVIDED BY NUMBER OF TRANSACTIONS.  Now, we know that sum of transactions imply the sales and number of transactions imply the SIZE OF THE CIRCLE. I hope you understand it now.

Oppenheimer1945 · Answer

How on earth are you assuming this?

Can you write the whole formula for Avg transaction?

DmitryFarberMPrep · Answer

That really is the whole average formula: total $/# of transactions. Is that the assumption you're asking about? It's like any other average, such as average speed = total distance/total time, etc.

Oppenheimer1945 · Answer

Shouldn't the ques ask  "average transaction value" instead of "average transactin"?

DmitryFarberMPrep · Answer

Oppenheimer1945

The original question asks about the "value of the average transaction." That's the same as the average transaction value.

bumpbot · Answer

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The six regions in which Techtyx Appliance Company sells appliances ar

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