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A bag containing 10,000 beads of assorted colors is purchased from a craft store. To estimate the percent of red...

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

Source: Official
Problem-Solving and Data Analysis
Inference from sample statistics and margin of error
MEDIUM
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A bag containing \(\mathrm{10,000}\) beads of assorted colors is purchased from a craft store. To estimate the percent of red beads in the bag, a sample of beads is selected at random. The percent of red beads in the bag was estimated to be \(\mathrm{15\%}\), with an associated margin of error of \(\mathrm{2\%}\). If \(\mathrm{r}\) is the actual number of red beads in the bag, which of the following is most plausible?

A

\(\mathrm{r \gt 1{,}700}\)

B

\(\mathrm{1{,}300 \lt r \lt 1{,}700}\)

C

\(\mathrm{200 \lt r \lt 1{,}500}\)

D

\(\mathrm{r \lt 1{,}300}\)

Solution

1. TRANSLATE the problem information

  • Given information:
    • Total beads: 10,000
    • Estimated percent red: 15%
    • Margin of error: 2%
  • What this tells us: We need to find how many actual red beads could plausibly be in the bag

2. TRANSLATE the percentage estimate into actual beads

  • Calculate estimated red beads: \(15\% \times 10{,}000\)
  • \(0.15 \times 10{,}000 = 1{,}500\) red beads (estimated)

3. TRANSLATE the margin of error into actual beads

  • Calculate margin of error: \(2\% \times 10{,}000\)
  • \(0.02 \times 10{,}000 = 200\) beads

4. INFER how margin of error creates a range

  • Margin of error means the actual value could be 200 beads above or below our estimate
  • Lower bound: \(1{,}500 - 200 = 1{,}300\) beads
  • Upper bound: \(1{,}500 + 200 = 1{,}700\) beads
  • Plausible range: \(1{,}300 \lt \mathrm{r} \lt 1{,}700\)

5. APPLY CONSTRAINTS to select the correct answer choice

  • Check each option against our calculated range:
  1. \(\mathrm{r} \gt 1{,}700\) (exceeds our upper bound)
  2. \(1{,}300 \lt \mathrm{r} \lt 1{,}700\) (matches exactly)
  3. \(200 \lt \mathrm{r} \lt 1{,}500\) (incorrectly uses margin of error as lower bound)
  4. \(\mathrm{r} \lt 1{,}300\) (below our lower bound)

Answer: B. \(1{,}300 \lt \mathrm{r} \lt 1{,}700\)




Why Students Usually Falter on This Problem

Most Common Error Path:

Weak INFER skill: Misunderstanding what margin of error represents in the context of the problem

Students might think the margin of error is an absolute lower bound rather than a deviation from the estimate. They see 'margin of error of 2%' and think this means there could be as few as 200 beads total, leading them to select Choice C (\(200 \lt \mathrm{r} \lt 1{,}500\)).

Second Most Common Error:

Poor TRANSLATE execution: Calculating percentages incorrectly or mixing up which percentage applies to what

Students might incorrectly calculate 15% of 10,000 or confuse the margin of error calculation, leading to wrong bounds. This can cause confusion and random answer selection.

The Bottom Line:

This problem tests whether students understand that margin of error creates a symmetric range around an estimate, not an absolute boundary. The key insight is that 'estimate ± margin of error' gives you the plausible range for the true value.

Answer Choices Explained
A

\(\mathrm{r \gt 1{,}700}\)

B

\(\mathrm{1{,}300 \lt r \lt 1{,}700}\)

C

\(\mathrm{200 \lt r \lt 1{,}500}\)

D

\(\mathrm{r \lt 1{,}300}\)

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