Question:For a certain budget, the ratio of savings to expenses is 2:5. If the expenses decrease by 6 units, how...
GMAT Problem-Solving and Data Analysis : (PS_DA) Questions
For a certain budget, the ratio of savings to expenses is \(2:5\). If the expenses decrease by \(6\) units, how must the savings change to maintain this ratio?
It must decrease by \(\mathrm{2.4}\) units.
It must increase by \(\mathrm{2.4}\) units.
It must decrease by \(\mathrm{6}\) units.
It must increase by \(\mathrm{6}\) units.
1. TRANSLATE the ratio relationship
- Given information:
- Savings to expenses ratio = 2:5
- Expenses decrease by 6 units
- Need to maintain the same ratio
- This tells us: \(\mathrm{savings/expenses = 2/5}\) must stay constant
2. INFER the key insight
- If the ratio must remain 2:5, then when expenses change, savings must change proportionally
- We need to find how much savings must change when expenses drop by 6 units
3. TRANSLATE the mathematical setup
- Let original savings = S and original expenses = E
- From the ratio: \(\mathrm{S/E = 2/5}\), so \(\mathrm{S = (2/5)E}\)
- After change: New expenses = \(\mathrm{E - 6}\)
- To maintain ratio: \(\mathrm{New\ savings/(E - 6) = 2/5}\)
4. SIMPLIFY to find the new savings amount
- New savings = \(\mathrm{(2/5)(E - 6)}\)
- New savings = \(\mathrm{(2/5)E - (2/5)(6)}\)
- New savings = \(\mathrm{S - 2.4}\)
5. INFER the final answer
- Change in savings = New savings - Original savings
- Change = \(\mathrm{(S - 2.4) - S = -2.4}\)
- The negative sign means savings must decrease
Answer: A. It must decrease by 2.4 units
Why Students Usually Falter on This Problem
Most Common Error Path:
Weak TRANSLATE skill: Students misinterpret "maintain the ratio" to mean that if expenses decrease by 6, then savings should also decrease by 6 to "keep things proportional."
They think: "Both parts of the budget should change by the same amount to stay balanced." This leads to the incorrect reasoning that savings must decrease by 6 units.
This may lead them to select Choice C (decrease by 6 units).
Second Most Common Error Path:
Poor INFER reasoning: Students correctly set up the initial ratio but incorrectly assume that decreasing expenses means savings should increase to "compensate" for the lost expenses.
They reason: "If we're spending less, we should be saving more by the same amount." This backward logic suggests savings increase by 6 units.
This may lead them to select Choice D (increase by 6 units).
The Bottom Line:
The key insight is that ratios describe proportional relationships, not equal changes. When one part of a ratio changes, the other part must change by the corresponding fraction, not by the same absolute amount. Understanding that \(\mathrm{2/5}\) of any change in expenses determines the change in savings is crucial for success.
It must decrease by \(\mathrm{2.4}\) units.
It must increase by \(\mathrm{2.4}\) units.
It must decrease by \(\mathrm{6}\) units.
It must increase by \(\mathrm{6}\) units.