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Graduate Management Admission Test (2022)

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GRE General Test Questions and Answers

Question 1

Business leaders who prefer centralized, pyramidal managerial structures to diversity and competition tend to (i)_________dissent in the decision-making process. But this insistence on (ii)_________can be dangerous in that it deprives decision makers of a full range of alternatives.

Options:

foster

spontaneity

deprecate

unanimity'

overrate

ambiguity

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Question 2

The following appeared in a memo from the president of Bower Builders, a company that constructs new homes.

"A nationwide survey reveals that the two most-desired home features are a large family room and a large, well-appointed kitchen. A number of homes in our area built by our competitor Domus Construction have such features and have sold much faster and at significantly higher prices than the national average. To boost sales and profits, we should increase the size of the family rooms and kitchens in all the homes we build and should make state-of-the-art kitchens a standard feature. Moreover, our larger family rooms and kitchens can come at the expense of the dining room, since many of our recent buyers say they do not need a separate dining room for family meals."

Write a response in which you examine the stated and or unstated assumptions of the argument. Be sure to explain how the argument depends on these assumptions and what the implications are for the argument if the assumptions prove unwarranted.

Options:

Answer:

See the detailed answer in explanation.

Explanation:

The memo discusses in detail about the statement s made in order to suppose a suggestion that might get more profits for the firm. It is essential that the statements need to be supported by proper data and facts. The given statement is unsupported and is built upon a basic premise of an expected possibility in the future. The memo states that a change in the manner or pattern in which the house is built will probably be helpful for the company to improve its nature and also profit.

The company believes that they would be able to improve the profit by replacing the dining room space with more space for living room and kitchen, they also focus on state of the art kitchen facilities. It is impertaive that the company states the various assumptions and the basis on which these assumptions would be stated. The company has failed to show and prove any given data or fact that ought of lead to the evidence that there might be possible increase in the profits.

The preferential choices of the people have also not been stated any where in the

passage. The random generalization only weaknes and undermiens the statement.

the statement has to be supported with survey from the people or the purchasers

which might provide better insights to the given statements.

It is essential for the company to consider the other factors and look into the sales for

the holistic perpoective rather that from a profit oriented angle.

The type of assumptions made in the memo are subjective and inclined towards a

great extent. which might be flawed in the event of not proving any Isubslantial

evidences.

To conclude. I think that it is essential for the company to substantiate the views and assumptions with better data and facts, failing which it would remain to be flawed. Any assumptions needs to be places on valid and reasonable ideas without which the core of the premise would hold no good.

Question 3

Exhibit.

A group of 3 different investors is to be randomly selected from the 5 investors shown. What is the probability that, for at least 2 of the 3 investors selected, the number of shares of Stock X purchased and then sold will be less than 1.5 times the corresponding number for stock Y?