Multi-Source Reasoning - Dichotomous

Some Data Insights Multi-Source questions can have a special format. Instead of asking one multiple-choice question, they ask you a series of three questions with dichotomous answers, like "Yes" or "No" or "True" or "False". As you know, for multiple-choice Multi-Source questions, you should read the question before consulting the sources. Do you think you should change your approach for dichotomous questions?

It's also important to remember that for dichotomous questions, you have to answer all parts of each question to get credit for a correct answer. So what do you think you should do if you aren't sure about the answer for one of the questions?

Incorrect.

Correct.

Here's a sample question based on three emails from the Acme Widget Company. [[content_tabs]] [[tab:Email 1]] Here are the two major highlights from the latest board meeting. First, we expect to need major capital investment in infrastructure next year. We will address the specific needs and costs at the next meeting. Second, we plan to pay a dividend to our stockholders if our profits increase by 10 percent this year. Currently, we are on pace to sell 65,000 widgets this year. [[tab:Email 2]] The accounting department has analyzed our sales income and profit margin. They have concluded that we need to sell 35,000 widgets to equal our profits from last year. We need to sell 50,000 or more to have a 10 percent profit increase this year. [[tab:Email 3]] We have identified three possible events that could impact our sales: 1) Some experts expect gas prices to top $3.00 per gallon later this year. If this happens, we will lose 5,000 sales. 2) Meteorologists believe current weather patterns may lead to strong snow storms on the east coast of the US before the end of the year. If a major blizzard hits the East Coast, we will lose 12,000 sales. 3) Currently, our major competitor is in court for possible environmental violations. If they get fined, we will gain 7,000 sales. [[content_tabs]] Consider the following statement: > {color:purple}Acme can guarantee to pay a dividend to its stockholders this year.{/color} > {color:purple}Does the information in the three emails support the inference as stated?{/color} To answer this question, how many emails do you need to consult?

Incorrect.

You can't get all the information you need from any one of the emails.

Incorrect.

While you can get the dividend target and projected sales from two of the emails, there are other factors in play, too.

Correct. - Email 1 tells you how many widgets they are on pace to sell and the required profit increase needed to pay out dividends. - Email 2 tells you how many widgets need to be sold in order to meet the needed profit increase. - Email 3 tells you possible changes to their expected sales. So you need information from all three emails to determine whether Acme can guarantee to pay a dividend this year.

Now that you've consulted all three emails, do you think Acme can guarantee to pay a dividend to its stockholders this year?

Incorrect.

Well done!

To sum up:

[[summary]]

Correct. Treat all Data Insights Multi-Source questions the same as you would multiple-choice questions. Read all the questions, and only then find the information you need to answer them. This will save you time, as you may be able to find the information you need in only one or two sources.

Incorrect.

Actually, it's best to treat all Data Insights Multi-Source questions the same as you would multiple-choice questions. Read all the questions, and only then find the information you need to answer them. This will save you time, as you may be able to find the information you need in only one or two sources.

You have to correctly answer all three questions in dichotomous questions to receive credit. So if you are completely stumped, your best bet is guessing. In fact, you can't advance to the next question until you submit an answer. You also cannot return to a question later. By guessing, at least you have a 50 percent chance of answering correctly for each statement.

Acme needs to sell 50,000 widgets to hit the 10% profit increase for paying a dividend. Acme is currently on pace to sell 65,000 widgets, but sales could fall as low as 48,000 if gas prices rise, a blizzard hits the East Coast, and Acme's competitor is *not* fined. So since it is possible for Acme to sell fewer than 50,000 widgets, the company cannot **guarantee** to pay a dividend.
Incorrect. You will always need to consult at least one source to answer a Multi-Source Reasoning question.
Incorrect. Your answer should be either 1, 2, or 3 since there are 3 emails, and you will always need to consult at least one source.
Yes; I would read and answer each of the three questions in turn, consulting the sources each time before moving on to the next question.
No; I would read all the questions before looking for the information I need in the sources, just like I do for multiple-choice questions.
Leave it blank
Make an educated guess
1
2
3
Yes
No
Continue
Continue
Continue
Other responses
0

The quickest way to get into your dream MBA

Adaptive learning technology

5000+ practice questions

7 simulation exams

Industry-Leading Score Guarantee

Save 100+ hours of your life

iOS and Android apps

Tablet device with “GMAT Prep | Bloomberg Exam Prep” app