U.S. manufacturing has generally shown positive growth from year to ye

Question

U.S. manufacturing has generally shown positive growth from year to year, although negative economic conditions can interrupt or reverse that pattern. The relative health of the economy has not, however, appeared to affect the steady increase in e-commerce since the year 2000. For example, the year 2009 saw a sharp decrease in the total dollar value of shipments from U.S. manufacturers, but growth of ecommerce as a proportion of these shipments' value continued at a level close to that of the several previous years.

This trend toward e-commerce is visible across industries. For instance, from 2004 to 2008, U.S. food manufacturers saw an increase of 27.9% in the total dollar value of their shipments. But the growth in ecommerce shipments within the food industry was far faster over the same period, with the total value of shipments handled via e-commerce more than tripling (from 12.5% to 38%) as a proportion of the total value of shipments. During the same period, the value of the leather manufacturing industry's shipments decreased by 6.9%, but the proportion of its sales handled via e-commerce rose sharply, increasing from 10.5% to 21% of the total value of shipments.

Sajjad1994 · Answer

Official Explanation

3. From 2004 to 2008, by approximately what percentage did the dollar value of the e-commerce shipments by the leather industry increase?

Explanation

You're asked to approximate the percentage increase from 2004 to 2008 of the value of e-commerce shipments for the leather industry. The first tab has all the data on the leather industry. Research to find the values of the total shipments for the leather industry in both years and the portion of each year's shipments accounted for by e-commerce. Then, calculate the percentage growth in e-commerce.

Tab 1 reveals that no actual dollar value of shipments is given, only a percentage change—a decrease of 6.9%. Pick numbers to handle this situation; if the dollar value of shipments in 2004 were $100, then the value in 2008 would have been $93.10.

Now, calculate the amount of e-commerce. Remember to use the e-commerce percentages given specifically for the leather industry in the first tab, not the industry-wide percentages in the third tab. In 2004, 10.5% of shipping was via e-commerce, and 10.5% of $100 is $10.50. In 2008, 21% was shipped via e-commerce: $93.10 × 0.21 = $19.551. You're looking for the percentage increase, so take the increase ($19.551 – $10.50 = $9.051) and divide by the original amount ($10.50) to find the percentage change.

$9.051 ÷ $10.50 = 0.862 = 86.2 %.

(B) is correct.

MichaelWunsch · Answer

$9.051÷$10.50=0.862=86.2$9.051÷$10.50=0.862=86.2%.

(B) is correct.

Sajjad1994 · Answer

Official Explanation

2. For each of the following periods, select Yes if the dollar value of e-commerce shipments increased by a larger dollar amount than did the total value of shipments from U.S. manufacturers for the same period. Otherwise, select No.

Explanation

Explanation

Statement 1:  
You're asked whether the growth in value of e-commerce shipments is larger than the growth in value of total shipments. Use the data in the second tab to calculate the growth of total shipments. Then, use the data from the third tab to calculate the dollar value of each year's e-commerce shipments and compare the differences. This is a good opportunity to use the calculator to speed up the math.

U.S. manufacturing as a whole

2005: 4,742,076

2006: 5,015,553

Growth: 273,477

E-commerce

2005: 28% × 4,742,076 = 1,327,781.28

2006: 31% × 5,015,553 = 1,554,821.43

Growth: 227,040.15

The correct answer is  No ; e-commerce growth was not greater.

Answer: No

Statement 2:

Approach strategically

In the questions that follow, save time by reusing some data from the previous statement's research. Here, you can reuse the 2006 data from the previous statement.

U.S. manufacturing as a whole

2006: 5,015,553

2007: 5,338,307

Growth: 322,754

E-commerce

2006: 31% × 5,015,553 = 1,554,821.43

2007: 35% × 5,338,307 = 1,868,407.45

Growth: 313,586.02

The correct answer is  No ; e-commerce growth was not greater.

Answer: No

Statement 3:

Approach strategically

Here, reuse the 2007 data from the previous statement.

U.S. manufacturing as a whole

2007: 5,338,307

2008: 5,468,093

Growth: 129,786

E-commerce

2007: 35% × 5,338,307 = 1,868,407.45

2008: 40% × 5,468,093 = 2,187,237.20

Growth: 318,829.75

The correct answer is  Yes ; e-commerce growth was greater.

Answer: Yes

demawtf · Answer

I'll try to write my reasoning, correct me if I'm missing something

1. For each of the following , select Yes if the percentage specified for a given industry is greater than the corresponding percentage for U.S. manufacturing as a whole. Otherwise, select No.

a. The total value of the leather industry's 2008 shipments as a percentage of the total value of the leather industry's 2004 shipments. NO

U.S. manufacturing as a whole --> will remain the same number in all 3 comparisons and can be seen in the "US Manufacturers tab": ratio of 5,468,093 (2008) / 4,308,971 (2004) * 100 = 126%
look at the end of the second block of the text "Economic Trends": During the same period, the value of the leather manufacturing industry's shipments decreased by 6.9%. --> Assume that in 2004 = 100 and 2008= 100(1-6.9%)= 93.1. Is 93.1/100 * 100 > 126%? NO

b. The total value of food manufacturers' 2008 shipments as a percentage of the total value of food manufacturers' 2004 shipments. YES

U.S. manufacturing as a whole = 126%
look at the beginning of the second block of the text "Economic Trends": from 2004 to 2008, U.S. food manufacturers saw an increase of 27.9% in the total dollar value of their shipments. --> Assume that in 2004 = 100 and 2008= 100(1+27.9%)= 127.9. Is 127.9/100 * 100 > 126%? YES

c. The proportion of the leather industry's business handled via e-commerce in 2008 as a percentage of the proportion of that industry's business handled via e-commerce in 2004. YES

U.S. manufacturing as a whole = 126%
look at the beginning of the second block of the text "Economic Trends": But the growth in ecommerce shipments within the food industry was far faster over the same period, with the total value of shipments handled via e-commerce more than tripling (from 12.5% to 38%) as a proportion of the total value of shipments.
look at the end of the second block of the text "Economic Trends": but the proportion of its sales handled via e-commerce rose sharply, increasing from 10.5% to 21% of the total value of shipments.
Let's combine the info:
- Leather 2008: 93,1
- Leather 2008 e-commerce: 93.1*21%=19.551
- Leather 2004: 100
- Leather 2004 e-commerce: 100*10.5%=10.5
Is 19.551/10.5*100 > 126%? YES

2. For each of the following periods, select Yes if the dollar value of e-commerce shipments increased by a larger dollar amount than did the total value of shipments from U.S. manufacturers for the same period. Otherwise, select No.

Comparison between the "E-commerce" and the "US Manufacturers" tabs. Leverage the (new-old)/old * 100 --> to see the delta %, making the second tab comparable with the first one.
2005–2006 NO
"E-commerce": seems aprox 28% for 2005 and 31% for 2006 so delta is 3%
"US Manufacturers": (5,015,553-4.742,076)/4.742,076*100 = 5,7%

2006–2007 NO
"E-commerce": seems aprox 31% for 2006 and 35% for 2007 so delta is 4%
"US Manufacturers": (5,338,307-5,015,553)/5,015,553*100= 6,4%

2007–2008 YES
"E-commerce": seems aprox 35% for 2007 and 40% for 2008 so delta is 5%.
"US Manufacturers": (5,468,093-5,338,307)/5,338,307*100= 2,4%

3. From 2004 to 2008, by approximately what percentage did the dollar value of the e-commerce shipments by the leather industry increase?

We can re-use the info in point 1.
- Leather 2004: 100
- Leather 2004 e-commerce: 100*10.5%=10.5
- Leather 2008: 93,1
- Leather 2008 e-commerce: 93.1*21%=19.551
Still the (new-old)/old * 100 --> (19.551-10.5)/10.5 * 100 = 86%

Have a nice day

pratiksha1998 · Answer

I am a little confused about what to we mean exactly by "corresponding percentage for U.S. manufacturing as a whole" ??

cheshire · Answer

it's the percent of growth from 2004 to 2008 in the US manufacturers tab. You can calculate it by:

Taking the total value from 2008 (5,468,093) and dividing it by the total value from 2004 (4,308,971) then multiplying it by 100 to get the percentage: 126%

Dream009 · Answer

Q2 trick:
I found a way how to solve this - eg US e-commerce % * 2008 manf value - Us e-commerce % *2007 manf > Increase 2008 - 2007 manf value 
so 40% of 2008 value - 35% of 2007 value is actually = 5% of 2008 value + .35 of increase from 2008 -2007
We just need to check if this 5% can over power and be more than 65% of difference. Most of the time you will not have to do it even by this logic the calculations

bagarwal11 · Answer

Can you please explain this in detail what exactly is the shortcut for this

	36%
	86%
	90%
	100%
	105%

U.S. manufacturing has generally shown positive growth from year to ye

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Yes	No
		The total value of the leather industry's 2008 shipments as a percentage of the total value of the leather industry's 2004 shipments.
		The total value of food manufacturers' 2008 shipments as a percentage of the total value of food manufacturers' 2004 shipments.
		The proportion of the leather industry's business handled via e-commerce in 2008 as a percentage of the proportion of that industry's business handled via e-commerce in 2004.

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U.S. manufacturing has generally shown positive growth from year to ye

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