THE OFFICIAL GUIDE FOR GMAT® REVIEW 2016

Table of Contents 1.0 What Is the GMAT® Exam? 1.0 What Is the GMAT® Exam? 1.1 Why Take the GMAT® Exam? 1.2 GMAT® Exam Format 1.3 What Is the Content of the Test Like? 1.4 Integrated Reasoning Section 1.5 Quantitative Section 1.6 Verbal Section 1.7 Analytical Writing Assessment 1.8 What Computer Skills Will I Need? 1.9 What Are the Test Centers Like? 1.10 How Are Scores Calculated? 1.11 Test Development Process 2.0 How to Prepare 2.0 How to Prepare 2.1 How Should I Prepare to Take the Test? 2.2 What About Practice Tests? 2.3 How Should I Use the Diagnostic Test? 2.4 Where Can I Get Additional Practice? 2.5 General Test-Taking Suggestions 3.0 Diagnostic Test 3.0 Diagnostic Test 3.1 Quantitative Questions 3.2 Verbal Questions 3.3 Quantitative and Verbal Answer Keys 3.4 Interpretive Guide 3.5 Quantitative Answer Explanations 3.6 Verbal Answer Explanations 4.0 Math Review 4.0 Math Review 4.1 Arithmetic 4.2 Algebra 4.3 Geometry 4.4 Word Problems 5.0 Problem Solving 5.0 Problem Solving 5.1 Test-Taking Strategies 5.2 The Directions 5.3 Practice Questions 5.4 Answer Key 5.5 Answer Explanations 6.0 Data Sufficiency 6.0 Data Sufficiency 6.1 Test-Taking Strategies 6.2 The Directions 6.3 Practice Questions 6.4 Answer Key 6.5 Answer Explanations 7.0 Reading Comprehension 7.0 Reading Comprehension 7.1 What Is Measured 7.2 Test-Taking Strategies 7.3 The Directions 7.4 Practice Questions 7.5 Answer Key 7.6 Answer Explanations 8.0 Critical Reasoning 8.0 Critical Reasoning 8.1 What Is Measured 8.2 Test-Taking Strategies 8.3 The Directions 8.4 Practice Questions 8.5 Answer Key 8.6 Answer Explanations 9.0 Sentence Correction 9.0 Sentence Correction 9.1 Basic English Grammar Rules 9.2 Study Suggestions 9.3 What Is Measured 9.4 Test-Taking Strategies 9.5 The Directions 9.6 Practice Questions 9.7 Answer Key 9.8 Answer Explanations 10.0 Integrated Reasoning 10.0 Integrated Reasoning 10.1 What Is Measured 10.2 The Question Types 10.3 Test-Taking Strategies 10.4 The Directions 11.0 Analytical Writing Assessment 11.0 Analytical Writing Assessment 11.1 What Is Measured 11.2 Test-Taking Strategies 11.3 The Directions 11.4 GMAT® Scoring Guide: Analysis of an Argument 11.5 Sample: Analysis of an Argument 11.6 Analysis of an Argument Sample Topics Appendix A: Answer Sheets Advertisement Online Question Bank Information End User License Agreement THE OFFICIAL GUIDE FOR GMAT® REVIEW 2016 FROM THE GRADUATE MANAGEMENT ADMISSION COUNCIL® THE OFFICIAL GUIDE FOR GMATđ REVIEW 2016 Copyright â 2015 by the Graduate Management Admission Council® All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization 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are available on the Downloads tab at this site: http://www.wiley.com/go/gmat2016updates Dear Future GMAT® Test-Taker and Business Leader, This book, The Official Guide for GMAT® Review 2016, is designed to help you prepare for and your best on the GMAT® exam That’s its purpose and our reason for bringing it to you It’s the only guide of its kind published by the Graduate Management Admission Council® (GMAC®), the makers of the exam Taking the GMAT exam lets schools know that you’re serious about your graduate business education, that you’re motivated and will accept nothing less than the best from yourself By using the Official Guide to prepare for the GMAT, you’re taking a very important step toward gaining admission to a high-quality business or management school or program of your choice GMAC was founded by the world’s leading schools in 1953 and, with them, developed the GMAT exam to help people who aspire to careers in management demonstrate their command of the skills needed for success in the classroom Schools use and trust the GMAT as part of their admissions process because it’s a very good predictor of that classroom success Today more than 6,000 graduate programs around the world use the GMAT exam to establish the MBA degree and other graduate-level management and specialized programs as hallmarks of excellence That connection to schools has made the GMAT exam the gold standard of admissions assessments for business and management A fact that makes us both proud and also drives us to keep improving the GMAT and the contribution it can make to you finding and gaining admission to the best school or program for you I applaud your commitment to your education, and I know that this book and the other official GMAT preparation materials you will find at mba.com will give you the confidence to achieve your personal best on the GMAT exam and launch a rewarding career in management I wish you the best success throughout your education and career Sangeet Chowfla President and CEO Graduate Management Admission Council®, makers of the GMAT® Exam Visit gmat.wiley.com to access web-based supplemental features available in the print book as well There you can take a diagnostic test to help you get the most out of your study time; access a question bank with 900 practice questions and answer explanations including 50 Integrated Reasoning questions; create personalized practice sets to gauge your skill level; and watch exclusive videos addressing concerns about taking the exam, balancing work and school, and preparing for the GMAT exam 1.0 What Is the GMAT® Exam? 1.0 What Is the GMAT® Exam? The Graduate Management Admission Test® (GMAT®) exam is a standardized exam used in admissions decisions by more than 5,200 graduate management programs worldwide It helps you gauge, and demonstrate to schools, your academic potential for success in graduate level management studies The four-part exam measures your Analytical Writing, Verbal, Quantitative, and Integrated Reasoning skills—higher-order reasoning skills that management faculty worldwide have identified as important for incoming students to have Unlike undergraduate grades and curricula, which vary in their meaning across regions and institutions, your GMAT scores provide a standardized, statistically reliable measure of how you are likely to perform academically in the core curriculum of a graduate management program The GMAT exam’s validity, appropriateness, and value in admissions have been well-established through numerous academic studies The GMAT exam is delivered entirely in English and solely on computer It is not a test of business knowledge, subject matter mastery, English vocabulary, or advanced computational skills The GMAT exam also does not measure other factors related to success in graduate management study, such as job experience, leadership ability, motivation, and interpersonal skills Your GMAT score is intended to be used as one admissions criterion among other, more subjective, criteria, such as admissions essays and interviews 1.1 Why Take the GMAT® Exam? Launched in 1954 by a group of nine business schools to provide a uniform measure of the academic skills needed to succeed in their programs, the GMAT exam is now used by more than 5,200 graduate management programs at approximately 1,900 institutions worldwide Using GMAT scores helps institutions select the most qualified applicants and ensure that the applicants they admit are up to the academic rigors of their programs When you consider which programs to apply to, you can look at a school’s use of the GMAT exam as one indicator of quality Schools that use the GMAT exam typically list score ranges or average scores in their class profiles, so you may also find these profiles helpful in gauging the academic competitiveness of a program you are considering and how well your performance on the exam compares with that of the students enrolled in the program Myth -vs- FACT M – If I don’t score in the 90th percentile, I won’t get into any school I choose F – Very few people get very high scores Fewer than 50 of the more than 200,000 people taking the GMAT exam each year get a perfect score of 800 Thus, while you may be exceptionally capable, the odds are against your achieving a perfect score Also, the GMAT exam is just one piece of your application packet Admissions officers use GMAT scores in conjunction with undergraduate records, application essays, interviews, letters of recommendation, and other information when deciding whom to accept into their programs No matter how well you perform on the GMAT exam, you should contact the schools that interest you to learn more about them and to ask how they use GMAT scores and other criteria (such as your undergraduate grades, essays, and letters of recommendation) in their admissions processes School admissions offices, web sites, and materials published by schools are the primary sources of information when you are doing research about where you might want to go to business school For more information on the GMAT exam, test registration, appropriate uses of GMAT scores, sending your scores to schools, and applying to business school, please visit our web site at mba.com 1.2 GMAT® Exam Format The GMAT exam consists of four separately timed sections (see the table on the next page) The test starts with one Analytical Writing Assessment (AWA) essay prompt, and you will have 30 minutes to type your essay on a computer keyboard The AWA is followed immediately by the 30-minute Integrated Reasoning section, which features 12 question prompts in four different question formats The test ends with two 75-minute, multiple-choice sections: the Quantitative section, with 37 questions, and the Verbal section, with 41 Myth -vs- FACT M – Getting an easier question means I answered the last one wrong F – Getting an easier question does not necessarily mean you got the previous question wrong To ensure that everyone receives the same content, the test selects a specific number of questions of each type The test may call for your next question to be a relatively difficult problem-solving item involving arithmetic operations But, if there are no more relatively difficult problem-solving items involving arithmetic, you might be given an easier item Most people are not skilled at estimating item difficulty, so don’t worry when taking the test or waste valuable time trying to determine the difficulty of the questions you are answering The Verbal and Quantitative sections of the GMAT exam are computer adaptive, which means that the test draws from a large bank of questions to tailor itself to your ability level, and you won’t get many questions that are much too hard or too easy for you The first question will be of medium difficulty As you answer each question, the computer scores your answer and uses it—as well as your responses to any preceding questions—to select the next question Computer-adaptive tests become more difficult the more questions you answer correctly, but if you get a question that seems easier than the last one, it does not necessarily mean you answered the last question incorrectly The test has to cover a range of content, both in the type of question asked and the subject matter presented Because the computer uses your answers to select your next questions, you may not skip questions or go back and change your answer to a previous question If you don’t know the answer to a question, try to eliminate as many choices as possible, then select the answer you think is best If you answer a question incorrectly by mistake—or correctly by lucky guess—your answers to subsequent questions will lead you back to questions that are at the appropriate skill level for you Though the individual questions are different, the content mixture is the same for every GMAT exam Your score is determined by the difficulty and statistical characteristics of the questions you answer as well as the number of questions you answer correctly By adapting to each test-taker, the GMAT exam is able to accurately and efficiently gauge skill levels over a full range of abilities, from very high to very low The test includes the types of questions found in this book and in the online Integrated Reasoning component, but the format and presentation of the questions are different on the computer When you take the test: The following appeared as part of an article in a weekly newsmagazine: “The country of Oleum can best solve the problem of its balance-of-trade deficit by further increasing the tax on its major import, crude oil After Oleum increased the tax on imported crude oil four months ago, consumption of gasoline declined by 20 percent Therefore, by imposing a second and significantly higher tax increase next year, Oleum will dramatically decrease its balance of trade deficit.” Discuss how well reasoned etc _ The following appeared as part of a business plan by the Capital Idea investment firm: “In recent years the worldwide demand for fish has grown, and improvements in fishing technology have made larger catches, and thus increased supply, possible: for example, last year’s tuna catch was percent greater than the previous year’s To capitalize on these trends, we should therefore invest in the new tartfish processing plant on Tartfish Island, where increasing revenues from tourism indicate a strong local economy.” Discuss how well reasoned etc The following appeared in a speech by a stockholder of Consolidated Industries at the company’s annual stockholders’ meeting: “In the computer hardware division last year, profits fell significantly below projections, the product line decreased from 20 to only items, and expenditures for employee benefits increased by 15 percent Nevertheless, Consolidated’s board of directors has approved an annual salary of more than $1 million for our company’s chief executive officer The present board members should be replaced because they are unconcerned about the increasing costs of employee benefits and salaries, in spite of the company’s problems generating income.” Discuss how well reasoned etc _ The following appeared in a memorandum from the business planning department of Avia Airlines: “Of all the cities in their region, Beaumont and Fletcher are showing the fastest growth in the number of new businesses Therefore, Avia should establish a commuter route between them as a means of countering recent losses on its main passenger routes And to make the commuter route more profitable from the outset, Avia should offer a 1/3 discount on tickets purchased within two days of the flight Unlike tickets bought earlier, discount tickets will be nonrefundable, and so gain from their sale will be greater.” Discuss how well reasoned etc _ The following appeared in a memorandum from the vice president of Gigantis, a development company that builds and leases retail store facilities: “Nationwide over the past five years, sales have increased significantly at outlet stores that deal exclusively in reduced-price merchandise Therefore, we should publicize the new mall that we are building at Pleasantville as a central location for outlet shopping and rent store space only to outlet companies By taking advantage of the success of outlet stores, this plan should help ensure full occupancy of the mall and enable us to recover quickly the costs of building the mall.” Discuss how well reasoned etc _ The following appeared in a memorandum written by the chair of the music department to the president of Omega University: “Mental health experts have observed that symptoms of mental illness are less pronounced in many patients after group music-therapy sessions, and job openings in the music-therapy field have increased during the past year Consequently, graduates from our degree program for music therapists should have no trouble finding good positions To help improve the financial status of Omega University, we should therefore expand our music-therapy degree program by increasing its enrollment targets.” Discuss how well reasoned etc The following appeared in a memorandum to the work-group supervisors of the GBS Company: “The CoffeeCart beverage and food service located in the lobby of our main office building is not earning enough in sales to cover its costs, and so the cart may discontinue operating at GBS Given the low staff morale, as evidenced by the increase in the number of employees leaving the company, the loss of this service could present a problem, especially since the staff morale questionnaire showed widespread dissatisfaction with the snack machines Therefore, supervisors should remind the employees in their group to patronize the cart—after all, it was leased for their convenience so that they would not have to walk over to the cafeteria on breaks.” Discuss how well reasoned etc _ The following appeared as part of an article in a trade magazine: “During a recent trial period in which government inspections at selected meatprocessing plants were more frequent, the amount of bacteria in samples of processed chicken decreased by 50 percent on average from the previous year’s level If the government were to institute more frequent inspections, the incidence of stomach and intestinal infections throughout the country could thus be cut in half In the meantime, consumers of Excel Meats should be safe from infection because Excel’s main processing plant has shown more improvement in eliminating bacterial contamination than any other plant cited in the government report.” Discuss how well reasoned etc Appendix A Answer Sheets Diagnostic Answer Sheet—Quantitative 27 28 29 30 31 32 33 34 35 10 36 11 37 12 38 13 39 14 40 15 41 16 42 17 43 18 44 19 45 20 46 21 47 22 48 23 24 25 26 Diagnostic Answer Sheet—Verbal 27 28 29 30 31 32 33 34 35 10 36 11 37 12 38 13 39 14 40 15 41 16 42 17 43 18 44 19 45 20 46 21 47 22 48 23 49 24 50 25 51 26 52 Problem Solving Answer Sheet 32 63 94 125 156 187 218 33 64 95 126 157 188 219 34 65 96 127 158 189 220 35 66 97 128 159 190 221 36 67 98 129 160 191 222 37 68 99 130 161 192 223 38 39 69 70 100 101 131 132 162 163 193 194 224 225 40 71 102 133 164 195 226 10 41 72 103 134 165 196 227 11 42 73 104 135 166 197 228 12 43 74 105 136 167 198 229 13 44 75 106 137 168 199 230 14 45 76 107 138 169 200 15 46 77 108 139 170 201 16 47 78 109 140 171 202 17 48 79 110 141 172 203 18 49 80 111 142 173 204 19 50 81 112 143 174 205 20 51 82 113 144 175 206 21 52 83 114 145 176 207 22 53 84 115 146 177 208 23 54 85 116 147 178 209 24 55 86 117 148 179 210 25 56 87 118 149 180 211 26 57 88 119 150 181 212 27 58 89 120 151 182 213 28 59 90 121 152 183 214 29 60 91 122 153 184 215 30 61 92 123 154 185 216 31 62 93 124 155 186 217 Data Sufficiency Answer Sheet 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 52 53 54 55 83 84 85 86 114 115 116 117 145 146 147 148 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 Reading Comprehension Answer Sheet 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 57 58 59 60 61 78 79 80 81 82 99 100 101 102 103 120 121 122 123 124 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 Critical Reasoning Answer Sheet 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 94 95 96 97 98 99 102 103 104 105 106 107 110 111 112 113 114 115 118 119 120 121 122 123 92 100 108 116 124 93 101 109 117 Sentence Correction Answer Sheet 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 Integrated Reasoning Answer Sheet 1A 11A 21A 31A 42A 1B 11B 21B 31B 42B 1C 11C 21C 32A 43A 2A 12 22A 32B 43B 2B 22B 2C 13A 22C 33A 44A 13B 33B 44B 13C 23A 23B 34A 45A 4A 14A 23C 34B 45B 4B 14B 4C 14C 24A 35A 46A 24B 35B 46B 5A 15 24C 5B 36A 47A 5C 16A 25A 36B 47B 16B 25B 16C 37A 48A 26A 37B 48B 7A 17A 26B 7B 17B 38A 49A 7C 17C 27A 38B 49B 27B 8A 18 8B 39A 50A 28A 39B 50B 8C 19A 28B 19B 40A 19C 29A 40B 29B 10A 20A 41A 10B 20B 30A 41B 10C 20C 30B Online Question Bank Information Your purchase of The Official Guide for GMAT® Review 2016 offers the original purchaser access to the Official Guide 2016 question bank and Integrated Reasoning website for a period of 12 months each To obtain an access code, go to www.wiley.com/go/officialgmatbook to verify your purchase Once you verify your purchase, you will be emailed an access code and instructions for setting up a personal login Note: GMAC and Wiley are not responsible for providing access to the online companion for customers who purchase or borrow used copies of this book This code will only provide you with access to the Integrated Reasoning companion website and Question Bank It will not work for other Wiley or GMAC password-protected websites For technical support, please visit http://wiley.custhelp.com or call Wiley at: 1-800-7622974 (U.S.), +1-317-572-3994 (International) WILEY END 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