The graph shows an analyst's assessment of how the cost of processing capacity for a certain type of information management...

GMAT Graphics Interpretation : (GI) Questions

Source: Official Guide

Graphics Interpretation

GI - Other

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Cost analysis graph for information management software processing capacity

The graph shows an analyst's assessment of how the cost of processing capacity for a certain type of information management software depends on whether that capacity is provided using point-to-point interfaces, interfacing capabilities, or integration capabilities. Most information management software of this type has nonzero capacities provided by all three methods. Cost and capacity levels indicated by the levels of the curves at the far left end of the graph reflect minimums that are shared by all information management software of this type. The lines continue to the right with similar slopes beyond the points shown.

Select from the drop-down menus the options that create the statement that most accurately reflects the information provided.

For the information management software withlevels of processing capacity, it would be least expensive to add a small amount of processing capacity by means of.

Solution

Owning The Dataset

Table 1: Text Analysis

Text Component	Literal Content	Simple Interpretation
Subject	The graph shows an analyst's assessment...	The graph evaluates how cost varies with method of providing processing capacity in information management software.
Three Methods	...provided using point-to-point interfaces, interfacing capabilities, or integration capabilities.	There are three methods compared: point-to-point interfaces, interfacing, and integration capabilities.
Mixed Usage	Most information management software ... has nonzero capacities provided by all three methods.	Most software uses a mixture of all three methods, not just one.
Minimums	...levels indicated by the levels of the curves at the far left end... reflect minimums shared by all...	All software of this type starts with a shared minimum cost and capacity.
Continuity	The lines continue to the right with similar slopes beyond the points shown.	The cost trends shown persist in the same direction beyond the visible part of the graph.

Table 2: Chart Analysis

Chart Element	Representation	Implications
Axes	X-axis: processing capacity, Y-axis: cost	Shows cost increases as capacity increases.
Point-to-point interfaces	Steep black line at lower capacity only	High incremental cost, only used for low capacity.
Interfacing capabilities	Curved blue line, starts lowest, rises faster	Cheapest for low capacity, but increases in cost quicker as capacity gets high.
Integration capabilities	Dashed gray curved line, starts higher, rises gently	More expensive at first, but cost rises more slowly, becoming competitive at high capacity.
Baseline	All three lines start at same point on far left	Minimum cost/capacity is the same for all software.
Line extension	Only interfacing and integration continue to higher capacity	Only these two methods are practical at larger capacities.

Key Insights

For small increases in processing capacity, interfacing capabilities offer the lowest overall cost.
Point-to-point interfaces become costly very quickly and are only practical for the smallest capacities.
At high processing capacities, the cost of interfacing and integration capabilities rises at a similar (gentle) rate, making either option comparably efficient for further capacity additions.

Step-by-Step Solution

Question 1: Determining Which Capacity Levels Apply to the Least Expensive Method

Complete Statement:

For the information management software with [BLANK 1] levels of processing capacity, it would be least expensive to add a small amount of processing capacity by means of [BLANK 2].

Breaking Down the Statement

Statement Breakdown 1:
- Key Phrase: with [BLANK 1] levels of processing capacity
- Meaning: This phrase asks us to consider all (or some range of) capacity levels shown in the chart.
- Relation to Chart: The x-axis of the chart represents the processing capacity levels.
- Important Implications: We must judge if the answer applies just to high, low, or all displayed capacity levels.

Statement Breakdown 2:
- Key Phrase: least expensive to add a small amount of processing capacity
- Meaning: We are looking for the lowest marginal cost for a small increase in capacity.
- Relation to Chart: The slope of each cost curve at any point shows the marginal (incremental) cost of adding capacity.
- Important Implications: The answer is determined by which method's curve is most nearly horizontal (has the flattest slope) over the capacity range.

What is needed: Does one method have the lowest marginal cost for every capacity level shown, or just some?

Solution:

Condensed Solution Implementation:
Observe each method's marginal cost (slope of curve) at all capacity levels.
Necessary Data points:
The slopes of the three lines for point-to-point interfaces, interfacing capabilities, and integration capabilities.
- Calculations Estimations:
  The integration capabilities curve is flattest (least steep) at every capacity level in the chart; it never becomes steeper than others.
- Comparison to Answer Choices:
  Since the integration capabilities curve is always flattest, the answer is 'all of the indicated' capacity levels, not just higher or lower.

FINAL ANSWER Blank 1: all of the indicated

Question 2: Identifying the Least Expensive Method

Complete Statement:

For the information management software with all of the indicated levels of processing capacity, it would be least expensive to add a small amount of processing capacity by means of [BLANK 2].

Breaking Down the Statement

Statement Breakdown 1:
- Key Phrase: by means of [BLANK 2]
- Meaning: We are to name the specific method (point-to-point interfaces, interfacing capabilities, or integration capabilities) with the lowest marginal cost.
- Relation to Chart: We compare the slope of each cost curve to find the method with consistently lowest additional cost.

What is needed: Which method's curve is always flattest (least increase in cost for small increments in capacity)?

Solution:

Condensed Solution Implementation:
Compare the steepness of the three lines; choose the method that stays flattest through all levels.
Necessary Data points:
Point-to-point interfaces (steepest), interfacing capabilities (moderate), integration capabilities (flattest, dashed line).
- Calculations Estimations:
  Integration capabilities curve is always flattest, visual inspection sufficient.
- Comparison to Answer Choices:
  The integration capabilities is the least expensive method at every level; choose 'integration capabilities'.

FINAL ANSWER Blank 2: integration capabilities

Summary

By closely inspecting the chart, we see that the integration capabilities method consistently offers the flattest slope, meaning its marginal cost for adding small amounts of capacity is always lowest, at all processing capacity levels shown. Therefore, the answer is 'all of the indicated' levels for Blank 1 and 'integration capabilities' for Blank 2.

Question Independence Analysis

The questions are dependent: identifying which capacity levels (Blank 1) relies on identifying the appropriate method and its cost behavior (Blank 2), since the flattest curve for marginal cost at every level belongs to integration capabilities.

Answer Choices Explained

For the information management software with

higher levels but not the software with lower

lower levels but not the software with higher

all of the indicated

levels of processing capacity, it would be least expensive to add a small amount of processing capacity by means of

point-to-point interfaces

interfacing capabilities

integration capabilities

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