GRE General TestQuantitative ReasoningHard

A production line produces 2,400 items per day. Due to an efficiency improvement, the production increases by 15%. However, 5% of the new production is found to be defective. What is the number of non-defective items produced per day after the improvement?

  1. A2,760
  2. B2,508
  3. C2,622
  4. D2,460
Show answer & explanation

Correct answer: C. 2,622

Initial production = 2400. Production increase by 15%: 2400 * 1.15 = 2760 items. Defective items = 5% of new production. Non-defective items = 95% of new production. Non-defective = 2760 * 0.95 = 2622 items.

Why the other options are wrong

  • A. This is the total production after the 15% increase, before accounting for defective items.
  • B. This is 2400 * (1 + 0.15 - 0.05) = 2400 * 1.10 = 2640, then 2640 * 0.95, which is an incorrect application of percentages.
  • D. This is 2400 + (2400 * 0.05 / 2), a miscalculation.

Multi-Step Percentage Problems

Multi-step percentage problems involve applying several percentage changes or calculations sequentially. Each percentage is applied to the result of the previous step.

  • An increase of X% means multiplying by (1 + X/100).
  • A decrease of X% (or 'not defective' if X% are defective) means multiplying by (1 - X/100).
  • Carry out operations in the order they occur in the problem.

Memory trick: First increase, then filter out the bad.

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