A corporation's directors have identified the following shortcomings in the corporation's computer-related systems: * The office computers and Internet connections are slow and inefficient, hindering employee productivity. * The security system is too old to effectively safeguard the computers against potential theft of corporate data. * The corporate website is unattractive and difficult for customers to use. To address such concerns, the directors are considering recommendations about five possible upgrades to the corporation's computer-related systems.The directors' concerns about the shortcomings in the corporation's computer-related systems were discussed by the corporation's senior leaders, who differed somewhat regarding priorities. * The chief financial officer (CFO) urges that the directors give a higher priority to upgrades that are projected to cause a greater increase in annual profits, compared with last year's profits. * The chief executive officer (CEO) recommends that upgrades that are projected to result in a greater increase in the corporation's stock market value, compared with its present value, be given a higher priority. * The chief technology officer (CTO) argues that, if the non implementation of any upgrade is projected to result in a greater decrease in annual profits compared with last year's profits, that upgrade should be given a higher priority. All parties agree that, other things being equal, less expensive upgrades should be given higher priority than more expensive ones. The proposed upgrade to the security system or to the payroll system would require that the proposed upgrade to the office computers be completed first. None of the other upgrades is subject to any such constraint.The table below shows, for each of the five possible upgrades, the projected expense of doing that upgrade. It also shows how implementation of the upgrade, or its non implementation, is projected to affect company value and profits (relative to last year's levels). The projections shown were agreed upon by all concerned parties at the corporation. https://gmatclub.com/forum/download/file.php?id=77110 Table.jpg

I couldn't even understand what Q. 3 was asking. Could someone please explain it? Marty?

Q3 - Based on the information provided, the task is to determine whether the terms "Low," "Medium," and "High" in the Table tab are used to describe an increase in company value projected to result from an upgrade, as mentioned in the final paragraph of the "Priorities" tab. Interpretation of Terms in the Context: Low : Typically represents a smaller increase in company value. Medium : Represents a moderate increase in company value. High : Represents a significant increase in company value. The Terms: Low : Since "Low" could describe a smaller increase in company value, it is likely used in the table to describe such an increase. Medium : "Medium" would describe a moderate increase in company value and is likely used in the table. High : "High" would describe a significant increase in company value and is likely used in the table. Answer: Low : Yes – It is likely used to describe a smaller increase in company value. Medium : Yes – It is likely used to describe a moderate increase in company value. High : Yes – It is likely used to describe a significant increase in company value. Therefore, all three terms ("Low," "Medium," "High") are likely used in the table to describe increases in company value resulting from the proposed upgrades. The correct selection would be "Yes" for all three terms.

A corporation's directors have identified the following shortcomings : Multi-Source Reasoning (MSR)

Last visit was: 02 Sep 2026, 02:28

It is currently 02 Sep 2026, 02:28

nguyenpham1309

Joined: 12 Feb 2023

Last visit: 02 Sep 2026

Posts: 19

Own Kudos:

[2]

Given Kudos: 66

Location: Viet Nam

Schools: HEC Sept '27

GMAT Focus 1: 645 Q85 V84 DI77 Verified score

Products:

Schools: HEC Sept '27

GMAT Focus 1: 645 Q85 V84 DI77 Verified score

Posts: 19

Kudos: 11

[2]

13 Jul 2024, 03:12

Kudos

Bookmarks

Swagatalaxmi

Anyone?

The question asks if those upgrades mentioned in the final paragraph of Priorities tab contains the level of effect "Low" / "Medium" / "High" in the Column 3 of the "Table" tab (increase company value). The trick is the two upgrades "Security" and "Payroll systems" have a precedent condition - "Computer upgrades". Therefore, when you check the column 3 in the table, you need to look for 3 of them, not only "Security and "Paryroll". The answer is Yes for all 3 of the level

NDTTT

Joined: 11 Sep 2020

Last visit: 20 Mar 2026

Posts: 48

Own Kudos:

Given Kudos: 1,147

Location: India

Posts: 48

Kudos: 8

06 Aug 2024, 00:45

Kudos

Bookmarks

GMATNinja Can you please explain Q3?

pranjalshah

Joined: 11 Dec 2023

Last visit: 16 Aug 2026

Posts: 103

Own Kudos:

138

[2]

Given Kudos: 202

Location: India

Concentration: Operations, General Management

Schools: ISB '27 (A$$$$)

GMAT Focus 1: 735 Q90 V87 DI82 Verified score

Schools: ISB '27 (A$$$$)

GMAT Focus 1: 735 Q90 V87 DI82 Verified score

Posts: 103

Kudos: 138

[2]

14 Aug 2024, 09:26

Kudos

Bookmarks

nguyenpham1309

Swagatalaxmi

Anyone?

I think we'll need to consider columns 3, 4, and 5 as each column shows how implementation or non-implementation affects company values. Column 3 is just a part of it (company stock market value). Is it correct?

Raman109

Joined: 17 Aug 2009

Last visit: 28 Jul 2025

Posts: 691

Own Kudos:

230

Given Kudos: 33

Posts: 691

Kudos: 230

14 Aug 2024, 19:51

Kudos

Bookmarks

Q3 - Based on the information provided, the task is to determine whether the terms "Low," "Medium," and "High" in the Table tab are used to describe an increase in company value projected to result from an upgrade, as mentioned in the final paragraph of the "Priorities" tab.

Interpretation of Terms in the Context:

Low: Typically represents a smaller increase in company value.
Medium: Represents a moderate increase in company value.
High: Represents a significant increase in company value.

The Terms:

Low: Since "Low" could describe a smaller increase in company value, it is likely used in the table to describe such an increase.
Medium: "Medium" would describe a moderate increase in company value and is likely used in the table.
High: "High" would describe a significant increase in company value and is likely used in the table.

Answer:

Low: Yes – It is likely used to describe a smaller increase in company value.
Medium: Yes – It is likely used to describe a moderate increase in company value.
High: Yes – It is likely used to describe a significant increase in company value.

Therefore, all three terms ("Low," "Medium," "High") are likely used in the table to describe increases in company value resulting from the proposed upgrades. The correct selection would be "Yes" for all three terms.

kubrah

Joined: 28 May 2024

Last visit: 03 Mar 2025

Posts: 11

Own Kudos:

[3]

Given Kudos: 8

Posts: 11

Kudos: 6

[3]

16 Aug 2024, 06:25

Kudos

Bookmarks

Question 1 C has be a bit confused. Not having a projected decrease is > than having a low/any decrease. Should it not be "Yes" rather than "no"

PReciSioN

Joined: 17 Dec 2023

Last visit: 24 May 2026

Posts: 89

Own Kudos:

112

[1]

Given Kudos: 46

Location: India

GMAT Focus 1: 795 Q90 V90 DI88 Verified score

Posts: 89

Kudos: 112

[1]

19 Aug 2024, 02:10

Kudos

Bookmarks

For question-3, would we refer to only column-3 (stock market value), and see if low medium high are present for security, payroll, and office computer upgrades, or should we also check if they are present in column-4 (annual profits increase) and column-5 (annual profits decrease)?
MartyMurray GMATCoachBen

yazadsarkari

Joined: 28 Sep 2023

Last visit: 23 May 2026

Posts: 29

Own Kudos:

Given Kudos: 17

GMAT 1: 590 Q60 V60 Verified score

Posts: 29

Kudos: 8

28 Aug 2024, 06:05

Kudos

Bookmarks

Please explain the. 3rd one

KarishmaB

Tutor

Joined: 16 Oct 2010

Last visit: 01 Sep 2026

Posts: 16,631

Own Kudos:

81,110

[4]

Given Kudos: 489

Location: Pune, India

Expert

Expert reply

Posts: 16,631

Kudos: 81,110

[4]

Updated on: 01 Sep 2025, 22:25

Originally posted by KarishmaB on 19 Aug 2025, 04:02.
Last edited by KarishmaB on 01 Sep 2025, 22:25, edited 2 times in total.

Kudos

Bookmarks

Swagatalaxmi

Show Spoiler

Attachment:

Table.jpg

Question 3.

For each of the following terms used in the Table tab, select Yes if it is used there to describe an increase in company value projected to result from an upgrade that is explicitly mentioned in the final paragraph of the Priorities tab. Otherwise, select No.

Low
Medium
High

You will need to take a focused minute or two to understand the question. Solving it takes 2 seconds once you understand it so the important thing is to keep patience.

For each of the following terms used in the Table tab - the "following terms used in the table tab" are Low, Medium and High.
an upgrade that is explicitly mentioned in the final paragraph of the Priorities tab - Three upgrades are mentioned in the final para of priorities tab: Office comp, security, payroll

Question becomes:

Low

Question: For Low, select Yes, if the term is used to describe an increase in company value projected to result from Office comp/security/payroll upgrade.

Look at column 3 (company market value).
The term "Low" is used to describe an increase in company value projected to result from security.
Select Yes.

Medium

Question:For Medium, select Yes, if the term is used to describe an increase in company value projected to result from Office comp/security/payroll upgrade.

The term "Medium" is used to describe an increase in company value projected to result from payroll.
Select Yes.

High

Question: For High, select Yes, if the term is used to describe an increase in company value projected to result from Office comp/security/payroll upgrade.

The term "High" is used to describe an increase in company value projected to result from office computers
Select Yes.

*Edited: Added the column to consider

terminatork07

Joined: 29 Jul 2023

Last visit: 22 May 2026

Posts: 33

Own Kudos:

Given Kudos: 23

Posts: 33

Kudos: 5

30 Aug 2025, 00:25

Kudos

Bookmarks

You didn't mentioned which column or set of columns to look for, since value of the company is mentioned in the questiong prompt.

KarishmaB

Question 3.

For each of the following terms used in the Table tab, select Yes if it is used there to describe an increase in company value projected to result from an upgrade that is explicitly mentioned in the final paragraph of the Priorities tab. Otherwise, select No.

Low
Medium
High

You will need to take a focused minute or two to understand the question. Solving it takes 2 seconds once you understand it so the important thing is to keep patience.

For each of the following terms used in the Table tab - the "following terms used in the table tab" are Low, Medium and High.
an upgrade that is explicitly mentioned in the final paragraph of the Priorities tab - Three upgrades are mentioned in the final para of priorities tab: Office comp, security, payroll

Question becomes:

Low

Question: For Low, select Yes, if the term is used to describe an increase in company value projected to result from Office comp/security/payroll upgrade.

The term "Low" is used to describe an increase in company value projected to result from security.
Select Yes.

Medium

Question:For Medium, select Yes, if the term is used to describe an increase in company value projected to result from Office comp/security/payroll upgrade.

The term "Medium" is used to describe an increase in company value projected to result from payroll.
Select Yes.

High

Question: For High, select Yes, if the term is used to describe an increase in company value projected to result from Office comp/security/payroll upgrade.

The term "High" is used to describe an increase in company value projected to result from office computers
Select Yes.

KarishmaB

Tutor

Joined: 16 Oct 2010

Last visit: 01 Sep 2026

Posts: 16,631

Own Kudos:

81,110

Given Kudos: 489

Location: Pune, India

Expert

Expert reply

Posts: 16,631

Kudos: 81,110

01 Sep 2025, 22:23

Kudos

Bookmarks

You have to look at Column 3 (increase in company stock market value) since the question mentions "company value."

terminatork07

You didn't mentioned which column or set of columns to look for, since value of the company is mentioned in the questiong prompt.

Moderators:

Bunuel

Math Expert

113028 posts

FrozenDragon

DI Forum Moderator

410 posts

Prep Toolkit

Announcements

Podcast with MIT Sloan Admissions Dean

"MIT would not be MIT without our International Students" - Dawna Levenson, Assistant Dean of Admissions, MIT Sloan

Subscribe to MBA Club for Latest Podcast Episodes & Insightful Application Tips

Test Anxiety - What It Really Looks Like and How to Manage It

ft. Erika Osherow, Mental Performance Coach

Subscribe to GMAT Club for Latest Episodes of GMAT Podcasts. Success Stories, and Live GMAT Lessons

Register and Get 1 week of free GMAT Club Tests!

Free interactive GMAT study plan

Tuck at Dartmouth

AI at Dartmouth Tuck: How the School Is Preparing Leaders for the Age of Artificial Intelligence
Inside the courses, research, and hands-on learning defining wise, decisive leadership in an AI-driven world.

Read More

AGSM at UNIVERSITY OF CALIFORNIA RIVERSIDE

Top GMAT Focus Debriefs

An Emory MBA Powers Growth

Emory powers growth—professionally and personally. Built on a foundation of interdisciplinary learning, leadership development, and career readiness, our top-20 MBA program delivers a high return on investment with top-5 career outcomes.

My Rewards

What are Rewards?

My Tier

(1 points)

Yes	No
		The CFO
		The CEO
		The CTO

	the CEO predicts the corporation will soon be sold
	slow Internet connections greatly reduce employees' productivity
	upgrading the payroll system alone would significantly increase the company's value
	theft of corporate data could result in a significat decrease in net annual profits
	the website upgrade would cost less than any of the other possible upgrades

GMAT Multi-Source Reasoning (MSR) Questions

A corporation's directors have identified the following shortcomings

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards