In a 500-day simulated currency-trading contest, three teams-Teams A, B, and C-applied automated currency-trading algorithms as the exchange rate data...
GMAT Graphics Interpretation : (GI) Questions
In a 500-day simulated currency-trading contest, three teams-Teams A, B, and C-applied automated currency-trading algorithms as the exchange rate data were streamed to their computers in real time. At the end of each day, each team's simulated balance (full-balance), in USD, was recorded. The contest was decided on the basis of these full-balances and their associated half-balances (0.5 times the corresponding full-balance). At the end of Day 500, the teams reported their full-balance and half-balance histories as well as their 500-day average full-balance. This information is shown in the graph. The winner of the contest was to be the team that earned the greatest number of the following points: 1 point for having at least one half-balance that exceeded another team's same-day full-balance on at least one day; 1 point for having the greatest 500-day full-balance average; and 1 point for having the greatest full-balance at the end of at least 80% of the days. In the event of a tie, the team with the greatest 500-day full-balance average was to be declared the winner.
Select from each drop-down menu the option that creates the most accurate statement.Owning The Dataset
Table 1: Text Analysis
| Text Component | Literal Content | Simple Interpretation |
|---|---|---|
| Contest Duration | "500-day simulated currency-trading contest" | The contest lasted 500 days |
| Teams | "three teams-Teams A, B, and C" | Three teams (A, B, C) participated |
| Trading Method | "applied automated currency-trading algorithms as the exchange rate data were streamed to their computers in real time" | Teams used automated programs to trade using live currency data |
| Balances Recorded | "At the end of each day, each team's simulated balance (full-balance), in United States dollars (USD), was recorded, along with the half-balance (0.5 times the corresponding full-balance)" | Daily tracking of each team's full- and half-balances in USD |
| Scoring Point 1 | "1 point for having at least one half-balance that exceeded another team's same-day full-balance on at least one day" | A team scores 1 point if their half-balance beats another's full-balance even once |
| Scoring Point 2 | "1 point for having the greatest 500-day full-balance average" | A team with the highest average full-balance over 500 days gets 1 point |
| Scoring Point 3 | "1 point for having the greatest full-balance at the end of at least 80% of the days (at least 400 of the days)" | Team with the most daily wins (\(\geq 400\) days) gets 1 point |
| Tiebreaker | "In the event of a tie, the team with the greatest 500-day full-balance average was to be declared the winner." | If points are tied, the team with the highest average wins |
Table 2: Chart Analysis
| Chart Element | Description | Interpretation |
|---|---|---|
| Line Chart | 6 lines: 3 teams (A,B,C) × (full-balance, half-balance) | Tracks balances of each team daily for 500 days |
| X-axis | Days 0–500 | Contest spans 500 days |
| Y-axis | USD range 0–300 | All balances remain below $300 |
| Reference Lines | 3 horizontal: team full-balance averages ($180–$190) | Indicates long-term performance; B highest, A middle, C lowest average |
| Team A (black) | Highly volatile, peaking near $290 on day ~250 | Large swings, high risk/high reward strategy |
| Team B (red/orange) | Steady, gradual growth from $100 to $260 | Most consistent and stable gain |
| Team C (cyan) | Initial sharp drop to $60, strong recovery to nearly $280 | Poor start, strong finish |
| Half-balance crossovers | Several thin (half-balance) lines cross above thick (other teams' full-balance) lines | Each team likely achieved the 'half-balance exceeds another's full-balance' condition |
Key Insights
Team B demonstrated the highest consistency and achieved the top 500-day average balance, suggesting it earned at least one scoring point and holds the tiebreaker. Team B also appears to have led in balance for the majority (>80%) of days. Team C, after a poor start, dramatically rebounded, and its half-balance overtook other teams' full balances during the late contest, likely earning the crossover point. All three teams' half-balances overtook at least one competitor's full-balance at various points. Team A displayed the highest volatility, sometimes outpacing others, but its average and stability were weaker than team B's.
Step-by-Step Solution
Question 1: Identifying the Winner of the Contest
Complete Statement:
In the contest, Team [BLANK 1] was declared the winner
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: In the contest
_ Meaning: Refers to the 500-day simulated currency-trading competition among Teams A, B, and C.
_ Relation to Chart: The chart shows the performance (balances) of all three teams throughout the contest.
_ Important Implications: We need to consider all teams' results over the 500 days and use the contest scoring rules to decide the winner.
- Key Phrase: In the contest
- Statement Breakdown 2:
- Key Phrase: was declared the winner
_ Meaning: The team that earned the most points according to the three criteria set by the contest rules wins.
_ Relation to Chart: To determine the winner, check the three criteria using the visual data: half-balance crossings, 500-day balances (reference lines), and daily leadership.
_ Important Implications: We must estimate which team gained the most points based on visible features of the chart.
- Key Phrase: was declared the winner
- What is needed: Which team (A, B, or C) was the contest winner according to the points earned from the three criteria.
Solution:
- Condensed Solution Implementation:
Estimate each team's performance using the chart. First, compare the reference lines for 500-day averages, which hover at about $190 for Team A and about $180 for Teams B and C. Next, check for instances where a team's half-balance line crossed above another team's full-balance line: all teams display such crossings during the contest. Finally, evaluate which team's balance was the highest for the most days: Team A leads for roughly the first and last 150 days, while Team B leads for the middle portion. Overall, Team A leads for the majority of days. - Necessary Data points:
Team A's 500-day average is about $190, higher than Teams B and C (about $180 each). Team A's half-balance line clearly crosses above full-balance lines. Team A's full-balance line is on top at the beginning and end of the period.
_ Calculations Estimations:
Team A leads for about 300 out of 500 days, but the requirement is at least 400 days (80%) for that scoring point. However, Team A definitively satisfies two criteria: highest average and at least one half-balance crossover.
_ Comparison to Answer Choices:
Among the choices, Team A is the only team that consistently achieves the highest average and at least one half-balance crossover, making Team A the clear winner.
FINAL ANSWER Blank 1: A
Question 2: Calculating Points Earned by the Winner
Complete Statement:
after winning [BLANK 2] points
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: after winning [BLANK 2] points
_ Meaning: We are to find the total points Team A earned in the contest from the three possible criteria.
_ Relation to Chart: Check, using the chart, how many criteria Team A fulfilled: (1) half-balance crossing, (2) highest 500-day average, (3) led for at least 80% of the days.
- Key Phrase: after winning [BLANK 2] points
- What is needed: How many contest points (out of 3) Team A earned.
Solution:
- Condensed Solution Implementation:
Go through each criterion: Criterion 1—Team A's half-balance line crosses above other teams' full-balance lines. Criterion 2—Team A clearly has the highest 500-day average. Criterion 3—Team A led more days than Team B or C but likely not 80% of the days (not at least 400 out of 500 days). So, Team A fulfills two out of three criteria. - Necessary Data points:
Half-balance crossovers: present for Team A. 500-day average reference line: highest for Team A. Days led: estimate about 300/500 for Team A.
_ Calculations Estimations:
Team A fulfills criteria 1 and 2, but not criterion 3. So, Team A earns exactly 2 points.
_ Comparison to Answer Choices:
Choices are 1, 2, or 3 points. 2 points is correct based on the approximation and the condensed solution.
FINAL ANSWER Blank 2: 2
Summary
Team A is the winner of the contest, earning 2 points: one for achieving the highest 500-day average and one for having its half-balance cross another team's full-balance at some point. Team A did not lead for 80% of the contest days, so it did not earn a third point.
Question Independence Analysis
The questions are dependent. The second blank requires knowing which team won (from the first blank) to determine how many points that winning team earned.