Integrated Reasoning Practice Question: Two-Part Analysis

Two-Part Analysis  is one of types of questions that will appear on the GMAT Integrated Reasoning!

At a certain corporation, N is the total number of employees.  These employees can choose among a variety of benefits packages, and R% of them choose the stock option plan as their benefit package.  For each employee in this plan, the corporation annually buys S shares of the company’s stock.  Suppose the average price per share of the company’s stock is P.

(On the real GMAT, the table below will have bubble choices for selecting answers, but here, select answers (A) – (F), as if it were ordinary multiple choice.)

 

The total number of shares of stock the corporation must buy annually to support this benefit package

The average monetary value of a single employee’s annual benefit in this plan

(A)

(A)

NPS

(B)

(B)

NRS

(C)

(C)

NRS/100

(D)

(D)

RSP

(E)

(E)

RSP/100

(F)

(F)

SP

 

Practice Question Answers and Explanations:

left column = (C)

right column = (F)

 

left column: The total number of shares of stock the corporation must buy annually to support this benefit package.

First of all, we need to figure out the number of employees in this benefit plan.  That number is R% of N, but in order to express that as an algebraic expression, we need to rewrite the percent as a fraction: (R/100)*N.  That’s the number of employees in the stock option plan.

Each one of those employees receives S stocks annually.  If (R/100)*N employees each receive S stocks, that’s a total of (R/100)*N*S = (NRS)/100.  Answer = C.

 

right column: The average monetary value of a single employee’s annual benefit in this plan

One employee receives S shares of stock.  Each one has an average value of P, so the total one employee receives is SP.  Answer = F.

 

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  • Mike MᶜGarry

    Mike served as a GMAT Expert at Magoosh, helping create hundreds of lesson videos and practice questions to help guide GMAT students to success. He was also featured as "member of the month" for over two years at GMAT Club. Mike holds an A.B. in Physics (graduating magna cum laude) and an M.T.S. in Religions of the World, both from Harvard. Beyond standardized testing, Mike has over 20 years of both private and public high school teaching experience specializing in math and physics. In his free time, Mike likes smashing foosballs into orbit, and despite having no obvious cranial deficiency, he insists on rooting for the NY Mets. Learn more about the GMAT through Mike's Youtube video explanations and resources like What is a Good GMAT Score? and the GMAT Diagnostic Test.

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