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Sahith_Manikanta
KarishmaB chetan2u Bunuel MartyMurray

Please help in solving question 1, my answers were NO - NO - NO for this. I accept that we can infer from passage that we were given bus companies spend 25% of their revenue on average which is 900 million $. But isn't this revenue bound to increase or decrease? The fact I can infer from this passage is thst 25% is the average revenue spent by bus companies for maintenance, but that 25% could be 900 million $ or 1500 million $ or any other value. Hence, I've answered the question as NO - NO - NO. Please correct me if I'm wrong.

If the question mentioned something like, revenue from 2001 to 2020 is constant and if passage gives me the information regarding the year in which the 900 million $ was spent by bus companies then the answer should be YES - NO - YES IMO.

I am not sure what I would do here. They say "typically" i.e. "usually". Does that mean that in a particular time period of 20 years, they spent 25%? Well, I can't say. I have seen GMAC be a bit lax in such circumstances and take a more generic view but since this is not an official question, I wouldn't have a takeaway here.
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Bunuel - Can you please help with this question ?
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Question does not states that the 80% shift is each year or 20% shift each year add to 80% by end of 4 years.
pinkman27
OFFICIAL ANSWER:

Part 1


I.
The "Environmentalist" passage specifies that commercial bussing enterprise typically spends 25% of its revenue on maintenance and regulatory adherence.
This statement can be determined.
II.
The "Environmentalist" passage only specifies that buses are more fuel-efficient than cars. No information regarding the quantity of fuel purchased is provided.
This statement cannot be determined.
III.
The "Environmentalist" passage specifies that 25% of the annual revenue is approximately 900 million. Using this information it is possible to calculate the average annual revenue and the approximate earnings from 2000 to 2020.
This statement can be determined.


PART 2

I.
The "Environmentalist" passage specifies that buses are more fuel and space efficient than cabs.
Yes is the correct answer choice.
II.
No information about labor costs is provided in the passages.
No is the correct answer choice.
III.
The "City Official" passage provides information regarding the costs associated with traveling in cabs and buses. All costs provided for buses are lower than the costs of cabs.
Yes is the correct answer choice.

PART 3

The "Environmentalist" passage specifies that if 20 percent of this city's commuters started using buses instead of cabs, it would save 200 million liters of oil and 100 million liters of gas each year.
Amount of fuel saved in 1 year due to 20% shift = 200 + 100 = 300 million liters.
Amount of fuel saved in 1 year due to 80% shift = 300 * 4 = 1200 million liters.
Amount of fuel saved in 4 years due to 80% shift = 4 x 1200 = 4800 million liters = 4.8 billion liters.
Hence, 4.8 billion liters is the correct answer choice.
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This question is inconsistent with the GMAT standards as time-frame is clearly not mentioned in the data. Please refrain from this question.

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