For each fiscal year in a 10-year period, the graph shows the number of employees at a certain corporation on...
GMAT Graphics Interpretation : (GI) Questions
For each fiscal year in a 10-year period, the graph shows the number of employees at a certain corporation on the first day of that fiscal year. The number of employees increased by more than 100 employees from the beginning of one year to the beginning of the next year if and only if the corporation was expected to have, in that next year, a substantial increase in revenue. For example, an increase of over 100 employees at the beginning of Year 12, compared to the beginning of Year 11, would imply that the corporation was expected to have a substantial increase in revenue in Year 12.
From each drop-down menu, select the option that creates the most accurate statement based on the information given.
Owning the Dataset
Table 1: Text Analysis
| Text Component | Literal Content | Interpretation |
|---|---|---|
| Time Period | "For each fiscal year in a 10-year period" | Data covers a sequence of 10 fiscal years. |
| Metric Measured | "the number of employees...on the first day of that fiscal year" | Measures employee count at the start of each fiscal year. |
| Rule for Significant Increase | "increased by more than 100 employees...if and only if...expected to have...substantial increase in revenue" | Any \(\mathrm{\gt 100}\) employee increase signals an expectation of significant revenue growth that year. |
| Example Clarification | "an increase of over 100 employees at the beginning of Year 12...imply...expected...substantial...revenue in Year 12" | Provides a concrete example: Year N's \(\mathrm{\gt 100}\) increase means substantial revenue expected in N. |
Table 2: Chart Analysis
| Chart Feature | Description | Analysis |
|---|---|---|
| X-axis | Years 1 to 10 | Shows timeline for 10 fiscal years. |
| Y-axis | Number of employees (ranging from about 400 to 850) | Vertical scale represents employee headcount. |
| First Major Increase | From Year 1 (\(\mathrm{\sim 400}\)) to Year 2 (\(\mathrm{\sim 600}\)), increase \(\mathrm{\gt 100}\) employees | Triggers the substantial revenue rule for Year 2. |
| Stable Plateau | Years 2–7 stay flat at \(\mathrm{\sim 600}\) employees | No substantial revenue increase expected these years. |
| Second Major Increase | From Year 7 (\(\mathrm{\sim 600}\)) to Year 8 (\(\mathrm{\sim 850}\)), increase \(\mathrm{\gt 100}\) employees | Indicates substantial revenue expected for Year 8. |
| End Plateau | Years 8–10 remain flat at \(\mathrm{\sim 850}\) employees | Again, no major expected revenue growth post-Year 8. |
Key Insights
- Only two years (Year 2 and Year 8) feature employee increases greater than 100, signaling only these years were expected to have substantial revenue growth per the dataset's rule.
- The employee count is otherwise stable, with no other years showing a qualifying increase—so no other years had substantial expected revenue growth.
- The pattern of sharp increases followed by multi-year plateaus suggests this company makes infrequent, large-scale expansions anticipating notable revenue boosts, rather than constant gradual growth.
Step-by-Step Solution
Question 1: First Year with Expected Substantial Revenue Increase
Complete Statement:
Among the years shown in the graph, Year [BLANK 1] was the first year in which the corporation expected to have a substantial increase in revenue over the course of that year.
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: first year
- Meaning: We are looking for the earliest year that fits the given criteria.
- Relation to Chart: We need to scan the chart starting from Year 1 and progressing chronologically.
- Important Implications: Only the very first year that qualifies is the answer.
- Statement Breakdown 2:
- Key Phrase: expected to have a substantial increase in revenue
- Meaning: According to the passage, this is the year following an increase of more than 100 employees at the beginning of that year compared to the previous year.
- Relation to Chart: We need to look for jumps of more than 100 in the employee count line from one year to the next.
- Important Implications: The 'substantial increase' is expected only if the increase is greater than 100 employees.
What is needed: The first year in the chart where the employee count increased by more than 100 from the previous year, making it the first year the corporation expected a substantial increase in revenue.
Solution:
- Condensed Solution Implementation:
Review the chart for the employee count at the beginning of each year and identify the first time the increase is greater than 100 compared to the previous year. - Necessary Data points:
Year 1: \(\mathrm{\sim 400}\) employees; Year 2: \(\mathrm{\sim 600}\) employees.- Calculations Estimations:
\(\mathrm{Year\ 2 - Year\ 1 = 600 - 400 = 200\ (\gt 100)}\). Year 2 is the first such year. - Comparison to Answer Choices:
Year 2 is among the listed answer choices (2, 4, 8), so the answer is 2.
- Calculations Estimations:
FINAL ANSWER Blank 1: 2
Question 2: Second Year with Expected Substantial Revenue Increase
Complete Statement:
and Year [BLANK 2] was the second such year.
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: second such year
- Meaning: We are to find the next occurrence after the first, that is, the second year with an increase as described.
- Relation to Chart: Continue scanning the chart, skipping years until the next time the employee count increases by more than 100.
What is needed: The next (second) year where the employee count increased by more than 100 from the previous year.
Solution:
- Condensed Solution Implementation:
After Year 2, continue to check each pair of years for an increase of more than 100 in employee count. - Necessary Data points:
Year 7: \(\mathrm{\sim 600}\) employees; Year 8: \(\mathrm{\sim 850}\) employees.- Calculations Estimations:
\(\mathrm{Year\ 8 - Year\ 7 = 850 - 600 = 250\ (\gt 100)}\). Year 8 is the second such year. - Comparison to Answer Choices:
Year 8 is among the listed answer choices (2, 4, 8), so the answer is 8.
- Calculations Estimations:
FINAL ANSWER Blank 2: 8
Summary
By analyzing the year-to-year changes in employee count on the chart, we see that only two periods show increases greater than 100: from Year 1 to Year 2 and from Year 7 to Year 8. Thus, the first year is 2 and the second is 8.
Question Independence Analysis
The two blanks are dependent: to find the second such year, one must first identify all years that qualify, so the answer to the first informs the answer to the second.