For each of the 8 quarters of 2008-2009, the graph shows a Japanese electronics firm's total US sales (rounded to...
GMAT Graphics Interpretation : (GI) Questions
For each of the 8 quarters of 2008-2009, the graph shows a Japanese electronics firm's total US sales (rounded to the nearest 1 million US dollars), and the change in the average value of US dollar in Japanese yen, where the change is expressed as a percentage of the dollar's value in the first quarter of 2008 (Q1 2008), to the nearest 1 percent. For any given quarter, this data may be used to convert total US sales to their Q1 2008 yen equivalent: a value directly proportional to that quarter's total US sales in Q1 2008 yen.
On the basis of the information provided, select from each of the drop-down menus the option that created the most accurate statement.
Owning the Dataset
Table 1: Text Analysis
| Text Component | Literal Content | Simple Interpretation |
|---|---|---|
| Subject | Japanese electronics firm | Japanese company selling electronics |
| Data series | Total US sales and change in average value of US dollar in Japanese yen | Amount sold in US dollars and percentage change in dollar-yen exchange rate |
| Time period | 8 quarters of 2008-2009 | Data covers two years, divided by quarter |
| US sales units | Rounded to the nearest 1 million US dollars | Sales numbers are approximate and easy to compare |
| Dollar value change | Expressed as percentage of the dollar's value in Q1 2008 | All currency values compare back to early 2008 |
| Conversion ability | Use data to convert total US sales to their Q1 2008 yen equivalent | Can adjust sales figures by currency changes for consistent comparison |
Table 2: Chart Analysis
| Chart Component | What It Shows | Key Notes |
|---|---|---|
| Chart Type | Combo of bar and line charts | Displays two series: sales and exchange rate changes |
| Bar chart (blue bars) | Total US sales (in millions) by quarter | Range is 22–25 million; relatively stable across all quarters |
| Line chart (black with dots) | % change in average dollar value vs. Q1 2008 | Ranges from \(-2\%\) (lowest) to \(+17\%\) (highest) |
| X-axis | Quarters (Q1 2008 to Q4 2009) | Eight quarters in order |
| Left y-axis | US sales scale: 0–30 million | Used for blue bars |
| Right y-axis | % change scale: \(-5\%\) to \(+20\%\) | Used for dollar value change; most values are positive after Q2 2008 |
| General trend | Dollar strengthens 2008–2009; sales stay steady | Converts to higher yen-equivalent in 2009, especially late 2009 |
Key Insights
During 2008–2009, the Japanese electronics firm's US sales remained steady, but the US dollar became much stronger against the yen—especially in 2009, peaking at a \(17\%\) increase in Q4 2009 versus the Q1 2008 baseline. Because yen-equivalent sales are calculated as US sales multiplied by (1 + percentage change), quarters with a strong dollar (like Q4 2009) see their sales worth much more in yen when measured by Q1 2008 rates. In contrast, Q3 2008 had the weakest dollar (\(-2\%\)), so yen-equivalent sales are lowest there, despite actual US sales staying fairly constant.
Step-by-Step Solution
Question 1: Finding the 2009 Quarter with Highest Yen-Equivalent Sales
Complete Statement:
Q1 2008 yen-equivalent sales were highest in [BLANK] of 2009.
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: Q1 2008 yen-equivalent sales
- Meaning: Sales calculated in yen using Q1 2008 foreign exchange rates, adjusted for the percentage change in the dollar against the yen.
- Relation to Chart: Requires using both the blue bars (US sales in millions) and the line (percentage change in dollar value) for each quarter.
- Important Implications: A quarter with higher US sales and/or higher percentage increase will result in higher yen-equivalent sales.
- Statement Breakdown 2:
- Key Phrase: highest in [quarter] of 2009
- Meaning: We need to determine which of the four quarters in 2009 yielded the highest yen-equivalent sales value.
- Relation to Chart: Must calculate the yen-equivalent value for Q1, Q2, Q3, and Q4 2009.
- Important Implications: All four quarters must be checked; focus on those with either high US sales or high percentage increases.
- What is needed: Which quarter in 2009 had the highest yen-equivalent sales when calculated using US sales and the percent change for that quarter.
Solution:
- Condensed Solution Implementation:
First, eliminate any quarter with obviously lower US sales or low percentage increases. Then, calculate the yen-equivalent sales for strong candidates to determine which is highest. - Necessary Data points:
Q1 2009: 25 million US sales, \(12\%\) increase; Q2 2009: 23 million US sales, \(8\%\) increase; Q3 2009: 23 million US sales, \(12\%\) increase; Q4 2009: 24 million US sales, \(17\%\) increase.- Calculations Estimations:
Q1 2009: \(25 \times 1.12 = 28.0\) million yen-equivalent; Q4 2009: \(24 \times 1.17 = 28.08\) million yen-equivalent; Q2 2009: \(23 \times 1.08 = 24.84\) million yen-equivalent; Q3 2009: \(23 \times 1.12 = 25.76\) million yen-equivalent. - Comparison to Answer Choices:
Q4 2009 (28.08) is slightly higher than Q1 2009 (28.0), while Q2 and Q3 are much lower. Therefore, the answer is Q4.
- Calculations Estimations:
FINAL ANSWER Blank 1: Q4
Question 2: Comparing Q4 2009 vs Q4 2008 Yen-Equivalent Sales
Complete Statement:
Q1 2008 yen-equivalent sales for Q4 2009 were [BLANK] Q1 2008 yen-equivalent sales for Q4 2008.
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: Q1 2008 yen-equivalent sales for Q4 2009
- Meaning: The Q4 2009 US sales figure multiplied by (1 + percentage change in dollar/100) for Q4 2009.
- Relation to Chart: Requires blue bar (24 million) and line value (\(17\%\)) for Q4 2009.
- Statement Breakdown 2:
- Key Phrase: Q1 2008 yen-equivalent sales for Q4 2008
- Meaning: The Q4 2008 US sales figure multiplied by (1 + percentage change in dollar/100) for Q4 2008.
- Relation to Chart: Requires blue bar (24 million) and line value (\(10\%\)) for Q4 2008.
- What is needed: Whether Q4 2009's yen-equivalent sales are less than, equal to, or greater than Q4 2008's yen-equivalent sales.
Solution:
- Condensed Solution Implementation:
Directly compare the calculations since both years have the same US sales but different percentage changes. - Necessary Data points:
Q4 2008: 24 million US sales, \(10\%\) increase; Q4 2009: 24 million US sales, \(17\%\) increase.- Calculations Estimations:
Q4 2008: \(24 \times 1.10 = 26.4\) million; Q4 2009: \(24 \times 1.17 = 28.08\) million. - Comparison to Answer Choices:
28.08 (Q4 2009) is greater than 26.4 (Q4 2008); answer is 'greater than'.
- Calculations Estimations:
FINAL ANSWER Blank 2: greater than
Summary
Q1 2008 yen-equivalent sales were highest in Q4 2009, just surpassing Q1 2009 because the strong percentage appreciation of the dollar against the yen outweighed Q1's slightly higher US sales. Comparing Q4 of 2009 and 2008, yen-equivalent sales were greater in 2009 due to a higher percentage increase, despite identical US dollar sales in both quarters.
Question Independence Analysis
While both questions require the same formula and chart interpretation, each can be answered independently using basic calculations and data extraction. Understanding one does not directly affect solving the other.