Last visit was: 28 Apr 2026, 03:06 It is currently 28 Apr 2026, 03:06
Home
Messages
Tests
Schools
Events
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
User avatar
itisSheldon
User avatar
Joined: 03 Mar 2018
Last visit: 26 Jan 2022
Posts: 160
Own Kudos:
687
 [3]
Given Kudos: 101
Posts: 160
Kudos: 687
 [3]
In a certain town, 40 percent of the residents own a car. 05 Mar 2018, 07:13
Kudos
Add Kudos
3
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

85% (hard)

Question Stats:

32% (01:26) correct 68% (01:29) wrong based on 28 sessions

History

Date
Time
Result
Not Attempted Yet
In a certain town, 40 percent of the residents own a car. What percent of the residents own neither a house nor a car?

(1) Each resident who owns a house also owns a car but the vice-versa is not true

(2) 30 percent of the residents own a house



Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Data Sufficiency (DS) Forum
Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
ShowHide Answer
Official Answer
A
User avatar
amanvermagmat
User avatar
Retired Moderator
Joined: 22 Aug 2013
Last visit: 28 Mar 2025
Posts: 1,142
Own Kudos:
2,973
 [1]
Given Kudos: 480
Location: India
Posts: 1,142
Kudos: 2,973
 [1]
In a certain town, 40 percent of the residents own a car. 05 Mar 2018, 11:09
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
itisSheldon
In a certain town, 40 percent of the residents own a car. What percent of the residents own neither a house nor a car?

(1) Each resident who owns a house also owns a car but the vice-versa is not true

(2) 30 percent of the residents own a house
Show more

Statement 1
Each resident who owns a house also owns a car, that means those 'who own a house' are a subset of 'those who own a car'. Now those who own a car are 40%, and the ones with house are a subset of and less than 40%.
This means residents who lie outside this set of 40% (meaning those who dont have a car) will be our answer, because those who dont have a car cannot have a house also.
So percentage of residents who own neither a house nor a car = 100 - 40% = 60%.
Sufficient.

Statement 2
40% own a car, and 30% own a house. But we dont know how many own both a car and a house. So we will not be able to calculate those who own neither a car nor a house. Not sufficient.

Hence A answer
User avatar
ezzo
User avatar
Joined: 26 Oct 2016
Last visit: 02 Sep 2021
Posts: 15
Own Kudos:
7
Given Kudos: 155
Posts: 15
Kudos: 7
In a certain town, 40 percent of the residents own a car. 05 Mar 2018, 15:00
Kudos
Add Kudos
Bookmarks
Bookmark this Post
can someone explain with the table method? not able to solve it
User avatar
amanvermagmat
User avatar
Retired Moderator
Joined: 22 Aug 2013
Last visit: 28 Mar 2025
Posts: 1,142
Own Kudos:
2,973
 [1]
Given Kudos: 480
Location: India
Posts: 1,142
Kudos: 2,973
 [1]
In a certain town, 40 percent of the residents own a car. 05 Mar 2018, 22:48
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
ezzo
can someone explain with the table method? not able to solve it
Show more

Hi

I have tried to explain by means of circular Venn diagram in the attached pic.

Statement 1
Since those who own a house also own a car, 'those who own house' are a subset of 'those who own car', thus 'those who own house' circle is inside the circle of 'those who own car'. So if 40% own car, that means outside the 'those who own car' circle, the remaining 60% people have no car and no house either. Sufficient.

Statement 2
We dont know how many own both car and house, and we also dont know whether one of these ('those who own car' and 'those who own house') is a subset of other or not. So we cannot deduce how many have neither a house nor a car. Not sufficient.
Attachments

IMG_20180306_110908_2.jpg
IMG_20180306_110908_2.jpg [ 49.71 KiB | Viewed 2016 times ]

User avatar
ezzo
User avatar
Joined: 26 Oct 2016
Last visit: 02 Sep 2021
Posts: 15
Own Kudos:
7
Given Kudos: 155
Posts: 15
Kudos: 7
In a certain town, 40 percent of the residents own a car. 07 Mar 2018, 10:12
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Thanks. the venn diagram just made the things very much clear.

amanvermagmat
ezzo
can someone explain with the table method? not able to solve it

Hi

I have tried to explain by means of circular Venn diagram in the attached pic.

Statement 1
Since those who own a house also own a car, 'those who own house' are a subset of 'those who own car', thus 'those who own house' circle is inside the circle of 'those who own car'. So if 40% own car, that means outside the 'those who own car' circle, the remaining 60% people have no car and no house either. Sufficient.

Statement 2
We dont know how many own both car and house, and we also dont know whether one of these ('those who own car' and 'those who own house') is a subset of other or not. So we cannot deduce how many have neither a house nor a car. Not sufficient.
Show more

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 38,986
Own Kudos:
1,119
Posts: 38,986
Kudos: 1,119
In a certain town, 40 percent of the residents own a car. 11 Jul 2019, 12:15
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Automated notice from GMAT Club BumpBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.
Moderators:
Bunuel
Math Expert
109948 posts
GMATBusters
GMAT Tutor
1922 posts