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The graph shows the percentage of Nation X-based enterprises engaged in two international business activities: A and B. For the...

GMAT Graphics Interpretation : (GI) Questions

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Graphics Interpretation
GI - Stats
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Graph showing percentage of Nation X-based enterprises engaged in international business activities

The graph shows the percentage of Nation X-based enterprises engaged in two international business activities: A and B. For the purposes of the graph, the enterprises are grouped by size (the number of employees each has)-large, medium, or small.


Based on the information provided, select from each drop-down menu the option that creates the most accurate statement.

In Nation X, a randomly selectedenterprise is about% more likely to engage in Activity B than to engage in Activity A.
Solution

Owning The Dataset

Table 1: Text Analysis

Text Component Literal Content Interpretation
Subject Matter percentage of Nation X-based enterprises engaged in two international business activities: A and B This dataset covers how often companies in Nation X participate in two specific international business activities
Grouping Method enterprises are grouped by size (the number of employees each has) Companies are classified as large, medium, or small by employee number
Size Categories large, medium, or small Three groups: large, medium, small enterprises
Measurement percentage of enterprises engaged in activities The proportion of enterprises within each size group that engage in each activity

Table 2: Chart Analysis

Chart Component What's Shown What It Implies
Chart Type Horizontal 100% stacked bar chart (with 2 rows/activities) Each activity visualizes its engaged enterprises by company size composition
Activities Activity A (top bar), Activity B (bottom bar) Direct comparison of the two activities
Segments Each bar: black (large), cyan (medium), white (small) Shows relative contribution by company size for each activity
Axis & Gridlines 0-100% on X-axis, 20% intervals Bar length reflects composition within activity, not engagement rate within size class
Notable Visual Small (white) segment almost disappears for Activity B Very low representation of small enterprises among those engaged in Activity B
Relation to Table Chart shows composition per activity, not engagement rates May cause confusion if misread as rates; need table data for actual engagement percentages

Key Insights

  • Large enterprises have the highest rates of engagement in both activities (\(80\%\) for A, \(85\%\) for B), much higher than medium (\(70\%/60\%\)) and small (\(50\%/45\%\)) firms.
  • Activity B sees a sharper drop in participation with decreasing enterprise size compared to Activity A, indicating greater barriers for smaller firms in Activity B.
  • The chart displays the internal composition of engaged enterprises within each activity—not the proportion of each size group participating—so interpreting the chart without the table could be misleading.
  • Only large enterprises are more likely to engage in Activity B than A, while medium and small enterprises have lower engagement in Activity B versus A; this suggests unique factors influencing large firms' participation in Activity B.

Step-by-Step Solution

Question 1: Determining the enterprise size type

Complete Statement:

In Nation X, a randomly selected [BLANK 1] enterprise is about [BLANK 2]% more likely to engage in Activity B than to engage in Activity A.

Breaking Down the Statement
  • Statement Breakdown 1:
    • Key Phrase: [BLANK 1] enterprise
    • Meaning: We must select the correct enterprise size (Large, Medium, or Small).
    • Relation to Chart: The chart gives Activity A and B participation rates for each enterprise size.
    • Important Implications: Select the size where Activity B participation rate is greater than Activity A.
  • Statement Breakdown 2:
    • Key Phrase: more likely to engage in Activity B than to engage in Activity A
    • Meaning: Look for a positive difference between the participation rates for Activity B minus Activity A.
    • Relation to Chart: Compare the values for each size; only consider sizes where Activity B > Activity A.
    • Important Implications: The answer will be limited to only the size(s) where B > A.

What is needed: Which enterprise size is more likely to engage in Activity B than Activity A (i.e., which has Activity B > Activity A).

Solution:
  • Condensed Solution Implementation:
    Check the difference (Activity B % - Activity A %) for Large, Medium, and Small. Only choose the size with a positive result.
  • Necessary Data points:
    Large: A=\(80\%\), B=\(85\%\); Medium: A=\(70\%\), B=\(60\%\); Small: A=\(50\%\), B=\(45\%\)
    • Calculations Estimations:
      Large: \(85\% - 80\% = +5\%\); Medium: \(60\% - 70\% = -10\%\); Small: \(45\% - 50\% = -5\%\). Only Large enterprises have Activity B > Activity A.
    • Comparison to Answer Choices:
      "Large" is the only valid choice for Blank 1.
FINAL ANSWER Blank 1: Large

Question 2: Calculating the percentage more likely

Complete Statement:

In Nation X, a randomly selected Large enterprise is about [BLANK 2]% more likely to engage in Activity B than to engage in Activity A.

Breaking Down the Statement
  • Statement Breakdown 1:
    • Key Phrase: [BLANK 2]% more likely
    • Meaning: Measures the relative percentage difference between Activity B and Activity A engagement rates.
    • Relation to Chart: Use the engagement rates for Large enterprises (Activity A and Activity B).
  • Statement Breakdown 2:
    • Key Phrase:
    • Meaning:
    • Relation to Chart:

What is needed: By what percentage are Large enterprises more likely to engage in Activity B compared to Activity A?

Solution:
  • Condensed Solution Implementation:
    Calculate \(\frac{\text{Activity B\%} - \text{Activity A\%}}{\text{Activity A\%}} \times 100\) for Large enterprises.
  • Necessary Data points:
    Large enterprises: Activity A = \(80\%\), Activity B = \(85\%\).
    • Calculations Estimations:
      Difference = \(85\% - 80\% = 5\%\). Relative % = \(\frac{5}{80} \times 100 = 6.25\%\).
    • Comparison to Answer Choices:
      Only \(6.3\%\) among the given options (11.1, 6.3, 5.9, 7.6, 15) matches \(6.25\%\) (rounded).
FINAL ANSWER Blank 2: 6.3

Summary

Large enterprises are the only group more likely to engage in Activity B than A, with a relative likelihood of \(6.3\%\). Calculation involved comparing the rates for each size type and selecting the one with a positive result, then computing the percentage increase for that specific size.

Question Independence Analysis

The two blanks are dependent: you must first determine which enterprise size (Blank 1) qualifies, then calculate the percentage (Blank 2) for that specific size. If you choose a different size for Blank 1, the calculation for Blank 2 changes.

Answer Choices Explained
In Nation X, a randomly selected
1A
Large
1B
Medium
1C
Small
enterprise is about
2A
11.1
2B
6.3
2C
5.9
2D
7.6
2E
15
% more likely to engage in Activity B than to engage in Activity A.
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