GMAT Focus EditionData InsightsHard

A product development team is evaluating two new features, Feature A and Feature B, for an upcoming software release. They have gathered data on the expected development cost and the estimated user adoption rate for each feature. The team prioritizes features that offer the highest 'adoption efficiency', defined as the user adoption rate per unit of development cost. **Feature A:** Development Cost: $80,000 Estimated User Adoption Rate: 12% **Feature B:** Development Cost: $120,000 Estimated User Adoption Rate: 15% Consider the following two statements: Statement 1: Feature A has a lower development cost than Feature B. Statement 2: Feature B has a higher estimated user adoption rate than Feature A. Which of the statements alone is sufficient to determine which feature has the highest adoption efficiency?

  1. ANeither statement alone nor both statements together are sufficient.
  2. BStatement 1 alone is sufficient, but Statement 2 alone is not sufficient.
  3. CStatement 2 alone is sufficient, but Statement 1 alone is not sufficient.
  4. DBoth statements together are sufficient, but neither statement alone is sufficient.
Show answer & explanation

Correct answer: D. Both statements together are sufficient, but neither statement alone is sufficient.

The 'adoption efficiency' is defined as the user adoption rate per unit of development cost (Adoption Rate / Development Cost). We need to determine which feature has the highest ratio. Let's calculate the adoption efficiency for each feature: Feature A: 12% / $80,000 = 0.00015% per dollar Feature B: 15% / $120,000 = 0.000125% per dollar So, Feature A (0.00015%) has higher adoption efficiency than Feature B (0.000125%). Statement 1: 'Feature A has a lower development cost than Feature B.' (True: $80,000 < $120,000). This statement alone tells us about costs but provides no information about adoption rates. Without adoption rates, we cannot calculate or compare adoption efficiency. Thus, Statement 1 alone is not sufficient. Statement 2: 'Feature B has a higher estimated user adoption rate than Feature A.' (True: 15% > 12%). This statement alone tells us about adoption rates but provides no information about development costs. Without development costs, we cannot calculate or compare adoption efficiency. Thus, Statement 2 alone is not sufficient. Combining both statements: We know Feature A has lower cost and lower adoption rate. We know Feature B has higher cost and higher adoption rate. With both pieces of information, we can calculate the ratio (as done above) and determine which has higher adoption efficiency. Since both statements together allow us to calculate the exact ratios and compare them, both statements together are sufficient. Therefore, the answer is 'Both statements together are sufficient, but neither statement alone is sufficient'. This is option C. My selected answer was D. Let me re-evaluate. If a question asks 'Which of the statements alone is sufficient to determine...', and the answer is 'Both statements together are sufficient, but neither statement alone is sufficient', then the answer to *that specific wording* is 'Neither statement alone nor both statements together are sufficient' from the options A, B, C, D. No, that's not right. The options A, B, C, D are standard GMAT DS options. If C is the correct DS outcome (Both TOGETHER are sufficient), then C is the answer. My initial calculation (Feature A: 0.00015%, Feature B: 0.000125%) shows A has higher efficiency. My evaluation of sufficiency was correct for C. So the answer should be C. My selected answer D was incorrect. I will correct it to C.

Why the other options are wrong

  • A. Both statements together are sufficient, making this option incorrect.
  • B. Statement 1 alone is insufficient because it provides no information about user adoption rates, which are critical for 'adoption efficiency'.
  • C. Statement 2 alone is insufficient because it provides no information about development costs, which are critical for 'adoption efficiency'.

Data Sufficiency: Ratio Comparison

To determine which of two quantities (A/B vs C/D) is greater, one typically needs information about both the numerators and denominators. Knowing only about numerators or only about denominators is usually insufficient.

  • If A>C and B<D, the comparison of A/B vs C/D is ambiguous without specific values.
  • If A>C and B>D, the comparison is also ambiguous.
  • Both components of the ratio are generally needed for a conclusive comparison.

Memory trick: Efficiency is adoption for every dollar spent.

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