byRituparna Nath Content Writer at Study Abroad Exams
Question: The average price of three stocks is $25 per share. Is the stock that costs $30 per share the highest priced of the three stocks?
- The highest-priced stock costs $1 more per share than the next-highest-priced stock.
- The lowest-priced stock costs $14 per share.
- Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
- Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
- BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
- EACH statement ALONE is sufficient.
- Statements (1) and (2) TOGETHER are not sufficient.
“The average price of three stocks is $25 per share.” – this is a topic of the GMAT Quantitative reasoning section of GMAT. This question has been taken from the book "GMAT Quantitative Review". GMAT Quant section consists of a total of 31 questions. GMAT Data Sufficiency questions consist of a problem statement followed by two factual statements. GMAT data sufficiency comprises 15 questions which are two-fifths of the total 31 GMAT quant questions.
Solution and Explanation
Approach Solution 1
Average of three stocks = 25
i.e. Total price of three stocks = 25*3 = $75
Question: Is highest priced stock = $30?
Statement 1: The highest-priced stock costs $1 more per share than the next-highest-priced stock.
CASE 1: Prices are 30, 31 and 14 Answer to the question is NO
CASE 2: Prices are 30, 29 and 16 Answer to the question is YES
NOT SUFFICIENT
Statement 2: The lowest-priced stock costs $14 per share
i.e. The simultaneous least possible values of other two stocks will be 30 and 31
i.e. Bigger of the remaining two stock prices can NOT be less than 31 hence answer to the question is NO (case 1 of first statement) hence
SUFFICIENT
Hence, B is the correct answer.
Correct Answer: B
Approach Solution 2
Total price of all three is 75$
#Statement 1
a+b+c=75
c=b+1
a+2b=74
we get both yes & no cases here
a=30, b= 22 , c=23
a=14,b=30,c=31
insufficient as we get two cases where stock is priced @ 30$ and in one case its highest and in another case its lowest
#Statement 2
a+b+c=75
14+b+c=75
b+c=61
at max b=30,c=31 , sufficient
only 1 case of 30 $ case possible. Hence, B is the correct answer.
Correct Answer: B
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