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05 Jan 2022, 07:00
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
76% (00:40) correct
24%
(00:33)
wrong
based on 33
sessions
History
Date
Time
Result
Not Attempted Yet
What was the amount of money invested by family members to start the business?
(1) Of the amount invested, 30 percent came from family members.
(2) Of the amount invested, $50,000 came from friends.
(1) Of the amount invested, 30 percent came from family members.
(2) Of the amount invested, $50,000 came from friends.
05 Jan 2022, 07:19
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We know something about family and friends here, but very little about other potential investors, so the answer is E. It might be that 30% was invested by family, 30% by friends, and 40% by some mysterious donor unknown to the person starting the business. Then the family invested the same amount as the friends invested, or $50,000. Or maybe friends invested only 1% of the total, in which case family would have invested 30 times as much, or $1.5 million (the rest of the now $5 million total investment coming from non-family and non-friends).
If there's a trap here, it's that test takers might assume only friends and family invested. But if you assume that's true, then using both statements, friends invested 70% of the total, and family 30%, so family invested 3/7 of what friends invested, and family would then have invested (3/7)(50,000) = 150,000/7 dollars, which is not a possible amount of money (it is an infinite decimal). So that might be a clue that the information is not sufficient even together. Technically the same issue exists in the first example I gave above (the 30% family, 30% friends example) but once you notice there can be other investors, it becomes so clearly E there isn't much reason to come up with perfect scenarios to prove anything.
If there's a trap here, it's that test takers might assume only friends and family invested. But if you assume that's true, then using both statements, friends invested 70% of the total, and family 30%, so family invested 3/7 of what friends invested, and family would then have invested (3/7)(50,000) = 150,000/7 dollars, which is not a possible amount of money (it is an infinite decimal). So that might be a clue that the information is not sufficient even together. Technically the same issue exists in the first example I gave above (the 30% family, 30% friends example) but once you notice there can be other investors, it becomes so clearly E there isn't much reason to come up with perfect scenarios to prove anything.
05 Jan 2022, 07:31
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Statement 1: Does not give any information about the amount invested by family. Without knowing the total amount invested we can't calculate the amount invested by family.
(NOT SUFFICIENT)
Statement 2: No information about amount invested by family.
(NOT SUFFICIENT)
Statement 1 and 2 together: No information is provided about the total amount invested.
If we were to assume that friends and family were the only two investers then the the amount invested by family could've been calculated.
Since no information is given about other investing members. It is safe to say that both statements together are not sufficient.
IMO ANSWER = E
Posted from my mobile device
(NOT SUFFICIENT)
Statement 2: No information about amount invested by family.
(NOT SUFFICIENT)
Statement 1 and 2 together: No information is provided about the total amount invested.
If we were to assume that friends and family were the only two investers then the the amount invested by family could've been calculated.
Since no information is given about other investing members. It is safe to say that both statements together are not sufficient.
IMO ANSWER = E
Posted from my mobile device
