GMAT Focus EditionData InsightsMedium
A market research firm conducted a survey on consumer preferences for three smartphone brands: X, Y, and Z. The results are presented in two charts. Chart 1 shows the percentage of respondents who own each brand. Chart 2, for those who own a smartphone, shows their satisfaction level (on a scale of 1-5, where 5 is highly satisfied) with their current brand. Chart 1: Brand Ownership - Brand X: 40% - Brand Y: 35% - Brand Z: 25% Chart 2: Average Satisfaction Score (among owners) - Brand X: 3.8 - Brand Y: 4.2 - Brand Z: 3.5 If the firm wants to identify the brand with the highest overall 'satisfaction impact' (defined as the product of its ownership percentage and its average satisfaction score), which brand should it identify?
- ABrand X
- BBrand Z
- CBrands X and Y have equal satisfaction impact.
- DBrand Y
Show answer & explanationAnswer & explanation
Correct answer: D. Brand Y
Calculate the 'satisfaction impact' for each brand by multiplying its ownership percentage (as a decimal) by its average satisfaction score. Brand X: 0.40 * 3.8 = 1.52. Brand Y: 0.35 * 4.2 = 1.47. Brand Z: 0.25 * 3.5 = 0.875. Brand X has the highest satisfaction impact.
Why the other options are wrong
- A. Brand X has a satisfaction impact of 1.52, which is the highest.
- B. Brand Z has a satisfaction impact of 0.875, which is the lowest.
- C. Brands X (1.52) and Y (1.47) do not have equal satisfaction impact.
Weighted Average/Product
A calculation that takes into account the varying degrees of importance or frequency of the numbers in a data set, typically by multiplying each value by its corresponding weight before summing (for average) or comparing (for product).
- Weights can be percentages, frequencies, or other measures of importance.
- Used to create a more representative overall measure.
- Ensures that more significant factors contribute proportionally more to the final result.
Memory trick: Connect the dots, solve the plot, from two charts a new insight is got.