1) Last month a certain music club offered a discount to preferred customers. After the first compact disc purchased, preferred customers paid $3.99 for each additional compact disc purchased. If a preferred customer purchased a total of 6 compact discs and paid $15.95 for the first compact disc, then the dollar amount that the customer paid for the 6 compact discs is equivalent to which of the following?

The average (arithmetic mean) of the integers from 200 to 400, inclusive, is how much greater than the average of the integers from 50 to 100, inclusive?

3) The sequence a1, a2, a3,...,an,... is such that An= An-1+An-2/2 for all n≥3. If A3=4 &, what is the value of a6 ?

4) Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in both municipal bonds and oil stocks. If 1 person is to be randomly selected from the 2,500 people, what is the probability that the person selected will be one who invests in municipal bonds but NOT in oil stocks?

5) A closed cylindrical tank contains cubic feet of water and is filled to half its capacity. When the tank is placed upright on its circular base on level ground, the height of the water in the tank is 4 feet. When the tank is placed on its side on level ground, what is the height, in feet, of the surface of the water above the ground?

6) A marketing firm determined that, of 200 households surveyed, 80 used neither Brand A nor Brand B soap, 60 used only Brand A soap, and for every household that used both brands of soap, 3 used only Brand B soap. How many of the 200 households surveyed used both brands of soap?

7) A certain club has 10 members, including Harry. One of the 10 members is to be chosen at random to be the president, one of the remaining 9 members is to be chosen at random to be the secretary, and one of the remaining 8 members is to be chosen at random to be the treasurer. What is the probability that Harry will be either the member chosen to be the secretary, or the member chosen to be the treasurer?

8) If a certain toy store’s revenue in November was 2/5 of its revenue in December and its revenue in January was 1/4 of its revenue in November, then the store’s revenue in December was how many times the average (arithmetic mean) of its revenues in November and January?

9) A researcher computed the mean, the median, and the standard deviation for a set of performance scores. If 5 were to be added to each score, which of these three statistics would change?

10) A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996 ?

11) Each of the reading comprehension questions is based on the content of a passage. After reading the passage, answer all questions pertaining to it on the basis of what is stated or implied in the passage. For each question, select the best answer of the choices given.

According to economic signaling theory, consumers may perceive the frequency with which an unfamiliar brand is advertised as a cue that the brand is of high quality. The notion that highly advertised brands are associated with high-
quality products does have some empirical support. Marquardt and McGann found that heavily advertised products did indeed rank high on certain measures of product quality. Because large advertising expenditures represent a significant investment on the part of a manufacturer, only companiesthat expectto recoup these costs in the long run, through consumers’ repeat purchases ofthe product, can afford to spend such amounts.
However, two studies by Kirmani have found that although consumers initially perceive expensive advertising as a signal of high brand quality, at some level of spending the manufacturer’s advertising effort may be perceived as unreasonably high, implying low manufacturer confidence in product quality. If consumers perceive excessive advertising effort as a sign of a manufacturer’s desperation, the result may be less favorable brand perceptions. In addition, a third study by Kirmani, of print advertisements, found that the use of color affected consumer perception of brand quality. Because consumers recognize that color advertisements are more expensive than black and white, the point at which repetition of an advertisement is perceived as excessive comes sooner for a color advertisement than for a black- and-white advertisement.

Which of the following best describes the purpose of the sentence in lines 4–6?

12) The primary purpose of the passage is to...

13) Kirmani’s research, as described in the passage, suggests which of the following regarding consumers’ expectations about the quality of advertised products?

14) Kirmani’sthird study, as described in the passage, suggests which of the following conclusions about a black-and-white advertisement?

15) The passage suggests that Kirmani would be most likely to agree with which of the following statements about consumers’ perceptions of the relationship between the frequency with which a product is advertised and the product’s quality?

16) Vasquez-Morrell Assurance specializes in insuring manufacturers. Whenever a policyholder makes a claim, a claims adjuster determines the amount that Vasquez- Morrell is obligated to pay. Vasquez-Morrell is cutting its staff of claims adjusters by 15 percent. To ensure that the company’s ability to handle claims promptly is affected as little as possible by the staff cuts, consultants recommend that Vasquez-Morrell lay off those adjusters who now take longest, on average, to complete work on claims assigned to them. Which of the following, if true, most seriously calls into question the consultants’ criterion for selecting the staff to be laid off?

17) Prolonged spells of hot, dry weather at the end of the grape-growing season typically reduce a vineyard’s yield, because the grapes stay relatively small. In years with such weather, wine producers can make only a relatively small quantity of wine from a given area of vineyards. Nonetheless, in regions where wine producers generally grow their own grapes, analysts typically expect a long, hot, dry spell late in the growing season to result in increased revenues for local wine producers. Which of the following, if true, does most to justify the analysts’ expectation?

18) In the past, most children who went sledding in the winter snow in Verland used wooden sleds with runners and steering bars. Ten years ago, smooth plastic sleds became popular; they go faster than wooden sleds but are harder to steer and slow. The concern that plastic sleds are more dangerous is clearly borne out by the fact that the number of children injured while sledding was much higher last winter than it was 10 years ago. Which of the following, if true in Verland, most seriously undermines the force of the evidence cited?

19) Metal rings recently excavated from seventh-century settlements in the western part of Mexico were made using the same metallurgical techniques as those used by Ecuadorian artisans before and during that period. These techniques are sufficiently complex to make their independent development in both areas unlikely. Since the people of these two areas were in cultural contact, archaeologists hypothesize that the metallurgical techniques used to make the rings found in Mexico were learned by Mexican artisans from Ecuadorian counterparts. Which of the following would it be most useful to establish in order to evaluate the archaeologists’ hypothesis?

20) Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives’ knowledge of clients’ businesses by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased. In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?