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A factory produces 80,000 electronic components each month. A quality control team randomly selected and tested 1,200 components from the...

GMAT Problem-Solving and Data Analysis : (PS_DA) Questions

Source: Prism
Problem-Solving and Data Analysis
Inference from sample statistics and margin of error
MEDIUM
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A factory produces \(\mathrm{80,000}\) electronic components each month. A quality control team randomly selected and tested \(\mathrm{1,200}\) components from the monthly production. Based on this sample, it is estimated that \(\mathrm{4.2\%}\) of all components produced are defective, with an associated margin of error of \(\mathrm{0.5\%}\). Based on these results, which of the following is a plausible value for the total number of defective components produced each month?

  1. 504
  2. 2,240
  3. 3,120
  4. 3,920
  5. 5,600
A

504

B

2,240

C

3,120

D

3,920

E

5,600

Solution

1. TRANSLATE the problem information

  • Given information:
    • Monthly production: 80,000 components
    • Sample tested: 1,200 components
    • Estimated defect rate: 4.2%
    • Margin of error: ±0.5%
  • What this tells us: We need to find a plausible range, not an exact value

2. INFER the statistical concept

  • Key insight: Margin of error means our 4.2% estimate could be off by 0.5% in either direction
  • This creates a range of possible defect rates:
    • Lowest possible rate: \(4.2\% - 0.5\% = 3.7\%\)
    • Highest possible rate: \(4.2\% + 0.5\% = 4.7\%\)

3. TRANSLATE percentages to decimals and calculate range

  • Convert to decimal form for calculation:
    • Lower bound: \(3.7\% = 0.037\)
    • Upper bound: \(4.7\% = 0.047\)
  • Apply to total production of 80,000:
    • Minimum defectives: \(80,000 \times 0.037 = 2,960\)
    • Maximum defectives: \(80,000 \times 0.047 = 3,760\)

4. APPLY CONSTRAINTS to select the answer

  • The plausible range is \([2,960, 3,760]\) defective components
  • Check each answer choice:
    • (A) 504: Too low (below 2,960)
    • (B) 2,240: Too low (below 2,960)
    • (C) 3,120: ✓ Within range
    • (D) 3,920: Too high (above 3,760)

Answer: C (3,120)




Why Students Usually Falter on This Problem

Most Common Error Path:

Weak INFER skill: Students focus only on the 4.2% estimate and ignore the margin of error completely.

They calculate: \(80,000 \times 0.042 = 3,360\) defective components, then look for the closest answer choice. Since 3,360 isn't an option, they might select Choice C (3,120) by proximity, getting the right answer for wrong reasons, or select Choice D (3,920) as another "close" option.

Second Most Common Error:

Poor TRANSLATE reasoning: Students misinterpret margin of error as applying to the final count rather than the percentage rate.

They calculate 4.2% of 80,000 = 3,360, then add/subtract 0.5% of 80,000 (400), giving them a range of [2,960, 3,760]. This accidentally leads to the correct range, but the reasoning process was flawed - they applied the margin of error to the wrong quantity.

The Bottom Line:

This problem tests understanding that statistical estimates come with uncertainty ranges, not precise values. Success requires recognizing that margin of error modifies the rate itself, creating a range of plausible outcomes rather than a single "best guess."

Answer Choices Explained
A

504

B

2,240

C

3,120

D

3,920

E

5,600

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