📊 GMAT Exam Prep

The table below shows the number of cars sold by dealership X and dealership Y over three years. Which of the following statements is true regarding the sales growth from 2021 to 2023? | Year | Dealership X | Dealership Y | |------|--------------|--------------| | 2021 | 500 | 600 | | 2022 | 550 | 630 | | 2023 | 600 | 650 |

A Dealership X had a higher absolute growth in sales than Dealership Y.
B Dealership Y had a higher percentage growth in sales than Dealership X.
C The average annual sales for Dealership X were higher than for Dealership Y.
D Dealership X's sales grew by exactly 20% over the period.

✓ Correct Answer: Option D

Dealership X grew from 500 to 600 (absolute 100, percentage (100/500)*100 = 20%). Dealership Y grew from 600 to 650 (absolute 50, percentage (50/600)*100 = 8.33%). X's absolute growth (100) is higher than Y's (50). X's percentage growth (20%) is higher than Y's (8.33%). Average annual sales: X = (500+550+600)/3 = 550; Y = (600+630+650)/3 = 626.67. Option D is the only true statement.

💡 Why is D) the correct answer?

The correct answer to the question "The table below shows the number of cars sold by dealership X and dealership Y over three years. Which of the following statements is true regarding the sales growth from 2021 to 2023? | Year | Dealership X | Dealership Y | |------|--------------|--------------| | 2021 | 500 | 600 | | 2022 | 550 | 630 | | 2023 | 600 | 650 |" is Option D: Dealership X's sales grew by exactly 20% over the period..

The other options — A) Dealership X had a higher absolute growth in sales than Dealership Y., B) Dealership Y had a higher percentage growth in sales than Dealership X., C) The average annual sales for Dealership X were higher than for Dealership Y. — are incorrect for this GMAT Exam Prep question. As explained above: Dealership X grew from 500 to 600 (absolute 100, percentage (100/500)*100 = 20%). Dealership Y grew from 600 to 650 (absolute 50, percentage (50/600)*100 = 8.33%). X's absolute growth (100) is higher…

📚 About This GMAT Exam Prep Practice Question

This 2-level GMAT Exam Prep question from the Data Insights topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

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