The attached graph displays the annual percent change in the Consumer

Question

The attached graph displays the annual percent change in the Consumer Price Index for urban medical care between the years of 1994 and 2003. Based on the graph, please answer the questions below.

1. The Consumer Price Index figure for urban medical care for 2003 was the figure for 2000.

2. From 1994 to 2003, the Consumer Price Index figure for urban healthcare .

The Last two questions based on this stem can be found here.

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Official Answer

Dropdown 1: Higher than Dropdown 2: Increased by more than 20%

poojakhanduja3017 · Accepted Answer

Got all three correct under a minute each.

No need to actually solve these questions for math.

1. The Consumer Price Index figure for urban medical care for 2003 was _______ the figure for 2000.

A. Higher than  Correct 
B. Lower than
C. Approximately the same as
 We can see that the %change is always +ve. So, if it started from 100, next year it would be 100 * 1.05 and then next year if it increased by 4%, it would be 100*1.05*1.04. Hence it is annually increasing only.

2. From 1994 to 2003, the Consumer Price Index figure for urban healthcare _______

A. Increased by more than 20%  Correct 
B. Increased by less than 20%
C. Decreased by less than 20%
D. Decreased by more than 20%

Now, given the previous example of starting from 100, only the first two years will give a growth of 5+3.9smething. If we see for all years, it will be more than 20 for sure. Had the options been 30/40%, we'd have to calcualte

3. The Consumer Price Index figure for urban healthcare was highest in _______

A. 1994
B. 2001
C. 2002
D. 2003  correct

Again, as it keeps increasing every year, the highest is in the last year.

Apt0810 · Answer

1) Higher than,The CPI increased from 2000 to 2003 and percent increase was lower in 2000, so the overall value increases from 2000 to 2003

2)Increased by more than 20% since if we roughly calculate the total increments than it would be:

4.9+3.9+2.9+2.7+3.2+3.4+3.9+4.6+4.9+3.5~37.9

3)It would be highest in 2003 since it got the effect of increment from previous years

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bM22 · Answer

1. The Consumer Price Index figure for urban medical care for 2003 was _______ the figure for 2000.
Let till 1999 the CPI was 10. Now in 2000 it grew by 4% approx. So new CPI in 2000 = 10.4.
Now till 2003 the CPI increased by approximately 4.5%, 5%(although its >5) and 3.5%. (Since we cannot pin on the exact no in the image, I am taking the approx %ages.)
Therefore: CPI in 2003 comes approx = 11.810.

thus we can say that CPI in 2003 is  higher than  the figure in 2000.
 Answer A
 .

2. From 1994 to 2003, the Consumer Price Index figure for urban healthcare _______
now the %age increases are : 4.9%, 3.8%, 3%,2.8%, 3.5%, 3.8%,4.5%,4.8%,3.8%, the total of which = approx. 34.64.
thus we can conclude that the % increase is > 20% for sure.

Answer - A

3. Direct one, since as in 1st also we say that CPI was higher in 2003, it would be, since its always increasing as compared to the previous years.
 Answer D

mmdfl · Answer

In this question you dont have to do almost any calculation and can solve it very fast
Question 1 ) The graph is about percentual change per year, and every percent is positive. So, the more recent the year, the higher the CPI value.
 Answer: Higher Than

Question 2 ) Here we have to evaluate whether the compound change makes more than x% (= the options in the droplist = +-10%/20%). Since there are ~10 years to be compounded, and the avg percent increase lays around 4%, it clearly makes more than 20% positive increase.
 Answer: Increased by more than 20%

Gemmie · Answer

1. The Consumer Price Index figure for urban medical care for 2003 was   the figure for 2000.

The graphs show percent increase only, not the whole CPI figure

CPI increased over the year

=> The figure for 2003 is greater than that for 2000

2. From 1994 to 2003, the Consumer Price Index figure for urban healthcare  .

I just used the calculator

1.05 * 1.04 * 1.03 * 1.03 * 1.035 * 1.04 * ...

After only a 5, 6 or 7 first multipliers do I already receive a product greater than 1.2

​​​​​​​=> Surely increase more than 20%

HarshZsssh · Answer

but in 2003 % increased is lower than 2000 than how can ans be higher than can u explain this?

jamiedimonn · Answer

hey  Bunuel  could you please explain this.... in a simpler language

cheshire · Answer

The graph is showing you the percent increase in the consumer price index each year. So, it is increasing annually even if some years are lower than others.

The change look something like this: 1.05*1.04*1.03*1.03.....

Because it is always increasing: The  Consumer Price Index figure for 2003 will be  higher  than every year before, including 2000.

Also, because it is always increasing: if we calculate the percent change total over the graph, we will find that it has  increased well over 20%

Finally, because the Consumer Price Index figure increases every year: The most recent year on the graph  (2003)  will have the highest Consumer Price Index figure.

The attached graph displays the annual percent change in the Consumer

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GMAT Graphs and Tables (G&T) Questions

The attached graph displays the annual percent change in the Consumer

Prep Toolkit

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