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A waiter receives tips from each customer. On average, the tip is 15% of the customer's bill. At this rate,...

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

Source: Official
Problem-Solving and Data Analysis
Percentages
EASY
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Notes
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A waiter receives tips from each customer. On average, the tip is \(15\%\) of the customer's bill. At this rate, which of the following is closest to the tip the waiter can expect when a customer has a bill that is \(\$78.20\)?

A
\(\$8.00\)
B
\(\$10.00\)
C
\(\$12.00\)
D
\(\$14.00\)
Solution

1. TRANSLATE the problem information

  • Given information:
    • Average tip rate: 15% of customer's bill
    • Customer's bill: $78.20
    • Need to find: Expected tip amount (closest to given choices)

2. TRANSLATE the percentage calculation

  • "15% of $78.20" means: \(0.15 \times \$78.20\)
  • Convert the percentage: \(15\% = \frac{15}{100} = 0.15\)

3. SIMPLIFY through calculation

  • Calculate: \(\$78.20 \times 0.15 = \$11.73\) (use calculator for accuracy)

4. INFER the selection strategy

  • The question asks "which is closest to" the calculated tip
  • Compare $11.73 to each answer choice:
    1. $8.00 \(\text{(difference: } \$3.73\text{)}\)
    2. $10.00 \(\text{(difference: } \$1.73\text{)}\)
    3. $12.00 \(\text{(difference: } \$0.27\text{)}\)
    4. $14.00 \(\text{(difference: } \$2.27\text{)}\)

5. APPLY CONSTRAINTS to select final answer

  • $11.73 is closest in value to $12.00

Answer: C. $12.00


Why Students Usually Falter on This Problem

Most Common Error Path:

Weak TRANSLATE skill: Students may misunderstand what "15% of" means mathematically and attempt division instead of multiplication. They might calculate \(\$78.20 \div 15 = \$5.21\), then select the closest answer choice.
This may lead them to select Choice A ($8.00) as it's the nearest to their incorrect result.

Second Most Common Error:

Poor SIMPLIFY execution: Students correctly set up \(0.15 \times \$78.20\) but make calculation errors, such as decimal placement mistakes, leading to results like $117.30 or $1.173.
This leads to confusion and guessing since these values don't align well with any answer choice.

The Bottom Line:

This problem tests whether students can smoothly convert between percentage language and mathematical operations, then recognize when approximation is needed for answer selection.

Answer Choices Explained
A
\(\$8.00\)
B
\(\$10.00\)
C
\(\$12.00\)
D
\(\$14.00\)
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