Cracking The GMAT, 2012 Edition -

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Editorial Rob Franek, VP Test Prep Books, Publisher Seamus Mullarkey, Editorial Director Laura Braswell, Senior Editor Heather Brady, Editor Selena Coppock, Editor Random House Publishing Team Tom Russell, Publisher Nicole Benhabib, Publishing Manager Ellen L. Reed, Production Manager Alison Stoltzfus, Associate Managing Editor The Princeton Review, Inc. 111 Speen Street, Suite 550 Framingham, MA 01701 E-mail: Copyright 2011 by The Princeton Review, Inc. Cover design 2011 by Random House, Inc. Cover art Suprijono Suharjoto/iStock Photo. The Princeton Review is not affiliated with Princeton University. All rights reserved. Published in the United States by Random House, Inc., New York, and in Canada by Random House of Canada Limited, Toronto. eISBN: 978-0-375-42768-8 ISSN 1549-263X Editor: Selena Coppock Production Editor: Michael Mazzei Production Coordinator: Deborah A. Silvestrini Illustrations: The Production Department of The Princeton Review 2012 Edition v3.1

Contents Acknowledgments Foreword So Much More Online Part I: Orientation 1 Introduction 2 How to Think About the GMAT 3 Cracking the System: Basic Principles 4 Cracking the System: Intermediate Principles 5 Cracking the System: Advanced Principles 6 Taking the GMAT Part II: How to Crack the Math GMAT 7 GMAT Math: Basic Principles 8 POE and GMAT Math 9 Data Sufficiency: Basic Principles 10 Arithmetic 11 Algebra 12 Applied Arithmetic 13 Geometry 14 Advanced Data Sufficiency Part III: How to Crack the Verbal GMAT 15 Sentence Correction 16 Reading Comprehension 17 Critical Reasoning Part IV: How to Crack the Analytical Writing Assessment 18 Analytical Writing Assessment Part V: Answer Key to Drills Part VI: The Princeton Review GMAT Warm-Up Test and Explanations 19 GMAT Warm-Up Test 20 GMAT Warm-Up Test Scoring Guide 21 GMAT Warm-Up Test: Answers and Explanations Part VII: The Princeton Review GMAT Practice Test and Explanations 22 GMAT Practice Bins 23 GMAT Practice Bins: Answers and Explanations About the Author

Acknowledgments Our GMAT course is much more than clever techniques and powerful computer score reports; the reason our results are great is that our teachers care so much about their students. Thanks to all the teachers who have made the GMAT course so successful, but in particular the core group of teachers and development people who helped get it off the ground: Alicia Ernst, Tom Meltzer, Paul Foglino, John Sheehan, Mark Sawula, Nell Goddin, Teresa Connelly, and Phillip Yee. Thanks to John Fulmer for his hard work updating this year’s edition. Special thanks to Adam Robinson, who conceived of and perfected the Joe Bloggs approach to standardized tests and many of the other successful techniques used by The Princeton Review.

Foreword I’m glad you bought this book. Primarily I’m glad because you’ve probably heard good things about The Princeton Review. Our tutors and teachers are carefully chosen and supported, and our tutoring and classroom courses continue to produce unmatched gains in GMAT scores. And we attract people like Geoff Martz, who is one of the most insightful and articulate instructors I’ve met, to make sure this book reflects everything we’ve learned about the test and the best ways to prepare for it. I’m also glad because it means you’re going to raise your GMAT score, and you’re going to do it without memorizing dozens of math theorems or the complete rules of English grammar. The information needed to do well on this test is surprisingly limited, and we’ll concentrate on a small number of crucial concepts. Students who feel that their standardized test scores do not reflect their college grades or business acumen probably suspect that there’s more to mastering one of these tests than just honing rusty math and verbal skills. At their root, these tests are trying to measure your IQ. They do so with an array of tricks, many of which lead you to wrong answers (called, fittingly, distracters). Some of our techniques address those tricks; I think you’ll find them fun and useful on every standardized test you take. Despite Geoff’s great skill, this book can’t mold itself around your strengths and weaknesses as effectively as our instructors or online programs. For this reason, we’ve created supplementary online tools that you can access at Using the online exams, we can help you spend your time more wisely to achieve the best results possible. So good luck on the GMAT! And if you need more help, or just want to find the right business school or the best way to pay for it, please stop by or call us at 800-2REVIEW (international students should call 1-212-874-8282). John Katzman Founder

Part I Orientation 1 2 3 4 5 6 Introduction How to Think About the GMAT Cracking the System: Basic Principles Cracking the System: Intermediate Principles Cracking the System: Advanced Principles Taking the GMAT

Chapter 1 Introduction Congratulations on your decision to attend business school! Preparing for the GMAT is an important part of the process, so let’s get started. This chapter will provide you with a strategic plan for acing the GMAT, as well as an overview of the test itself, including question formats and information on how the test is scored.

HOW TO USE THIS BOOK: A STRATEGIC PLAN FOR ACING THE GMAT 1. Learn the Famed Princeton Review Test-Taking Strategies In the next few chapters, you’ll find the strategies that have given our GMAT students the edge for the past 20 years. 2. Learn the Specific Math and Verbal Skills You’ll Need Our courses include an extremely thorough review of the math and verbal skills our students need to ace the GMAT, and this book will give you that same review. Important Phone Numbers: To register for the GMAT: 800-717-GMAT To reach GMAC Customer Service: 866-505-6559 or 703-245-4222 3. Practice Each Type of Question—at the Difficulty Level You Need to Master The GMAT is an interactive test, administered on computer. It quickly hones in on your level of ability and then proceeds to give you questions at or just above that level. It makes sense for you to practice on the level of problem you will actually see during the test. Cracking the GMAT is the only book out there with practice questions grouped by difficulty. Page after page of practice questions are arranged at the back of this book in difficulty “bins”—just like the questions on the real GMAT—so that you can concentrate on the question level you will have to answer on the actual test in order to get the score you need. Take GMATs online at PrincetonReview. com/cracking 4. Periodically Take Simulated GMATs to Measure Your Progress As you work through the book, you’ll want to take our online practice tests to see how you’re doing. These interactive tests closely mimic the GMAT so you can become familiar with both the test’s content and its format. Our practice tests can be found at In addition, we actively encourage students to use The Official Guide for GMAT Review, which is published by the Graduate Management Admission Council (GMAC). It contains actual test questions from previous administrations of the GMAT. You should also take at least one of the real practice tests available through the GMAT website, 5. Hone Your Skills Using the detailed score reports from your practice exams, you’ll be able to zero in on problem areas and quickly achieve mastery through additional practice. And as your score rises, this book is ready with more difficult bins to keep you on track for the score you need. 6. Keep Track of the Application Process Throughout the book, you will find informative sidebars explaining how and when to register for the test, how and when to apply to business school, the advantages and disadvantages of applying early, and a chapter on the application process. Plus, at, you’ll be able to take advantage of our powerful web-based tools to match yourself with schools that meet your needs and preferences. WHAT IS THE GRADUATE MANAGEMENT ADMISSION TEST? The Graduate Management Admission Test (GMAT) is a standardized test used by business schools as a tool to decide whom they are going to let into their M.B.A. programs.

Learn About Different Business Schools Check out our book: Best 300 Business Schools. What Does the Test Look Like? The GMAT is only offered on computer. The four-hour test is administered at a secure computer terminal at an approved testing center. You enter your multiple-choice answers on the screen with a mouse; you must compose your essays for the Writing Assessment section on the computer as well. 1. Two 30-minute essays to be written on the computer using a generic word-processing program (optional break) 2. A 75-minute, 37-question multiple-choice Math section (optional break) 3. A 75-minute, 41-question multiple-choice Verbal section On average, this would give you two minutes for each math question and a little less than two minutes for each verbal question—but you will find that our Princeton Review strategies will slightly revise these times. You must answer a question in order to get to the next question—which means that you can’t skip a question and come back to it. And while you are not required to finish any of the sections, your score will be adjusted downward to reflect questions you did not complete. There are two optional short breaks: one after you finish the two essays, and the other after you finish the Math section. On each of the Math and Verbal sections, approximately one quarter of the questions you encounter will be experimental and will not count toward your score. These questions, which will be mixed in among the regular questions, are there so the test company can try out new questions for future tests. We’ll have much more to say about the experimental questions later. What Information Is Tested on the GMAT? You will find several different types of multiple-choice questions on the GMAT. Math (37 questions total) Problem Solving—approximately 19 questions Data Sufficiency (a strange type of problem that exists on no other test in the world)—approximately 18 questions Verbal (41 questions total) Reading Comprehension (tests your ability to answer questions about a passage)—approximately 14 questions Sentence Correction (a grammar-related question type)—approximately 16 questions Critical Reasoning (a logic-based question type recycled from the LSAT)—approximately 11 questions Where Does the GMAT Come From? The GMAT is published by ACT, a test development company, under the sponsorship of the Graduate Management Admission Council (GMAC). Both ACT and GMAC are private companies. We’ll tell you more about them later on in this book. How Is the GMAT Scored?

As soon as you’ve finished taking the GMAT, your computer will calculate and display your unofficial results, not including your Writing Assessment score. You can print out a copy of your unofficial results to take with you. Within 20 days, you will receive your score report online; a written report will be available only by request. Most people think of the GMAT score as a single number, but in fact there are four separate numbers: 1. 2. 3. 4. Math score (reported on a scale that runs from 0 to 60) Verbal score (reported on a scale that runs from 0 to 60) Total score (reported on a scale that runs from 200 to 800) Analytical Writing Assessment score (reported on a scale of 0 to 6, in half-point increments; 6 is the highest score) The report will look something like this: Many business schools tend to focus on the total score, which means that you may make up for weakness in one area by being strong in another. For example, if your quantitative skills are better than your verbal skills, they’ll help pull up your total score— although some of the more selective schools say they prefer to see math and verbal sub-scores that are balanced. Total scores go up or down in ten-point increments. In other words, you might receive 490 or 500 on the GMAT, but never 494 or 495. You will also see a percentile ranking next to each score. For example, if you see a percentile of 72 next to your verbal score, it means that 72 percent of the people who took this test scored lower than you did on the Verbal section. GMAT Changes in 2012 GMAC has announced that the GMAT is going to undergo some changes in June of 2012. As of this writing, there are still many unanswered questions about the specifics of the changes. However, here’s what we do know: There will be no changes to the existing Quantitative and Verbal sections. These sections will continue to be computer adaptive. The Quantitative section will continue to be 75 minutes, feature 37 questions, and be a mix of Problem Solving and Data Sufficiency questions. The Verbal section will continue to be 75 minutes, feature 41 questions, and be a mix of Sentence Correction, Critical Reasoning, and Reading Comprehension questions. Test takers will continue to receive separate scores of 0 60 for the Quantitative and Verbal sections. Test takers will also continue to receive a 200 800 score based on the results from the Quantitative and Verbal sections. There will only be one essay rather than two. The essay can be either an Issue Essay or an Argument Essay, the two types of essays on the current exam. Test takers will continue to receive a separate essay score on a 0 6 scale. There will be a new, 30-minute section called the Integrated Reasoning section. According to GMAC, the new section evaluates a test-taker’s ability to analyze data from different sources. Test takers will be called upon to evaluate data graphically, analyze different types of information, and evaluate outcomes. The Integrated Reasoning section is not computer adaptive but some questions may contain multiple parts. The Integrated Reasoning section will receive its own, separate score. Okay, so what does all of that really mean? GMAC beta-tested the new section in November of 2010. Based upon reports from some test-takers who saw the new section, it looks like it will probably have 15 17 questions. Many of the questions differed more in the format than in content from current GMAT questions. For example, one test-taker saw a Critical Reasoning question that had seven answer choices. Each of the answer choices either strengthened the argument or weakened the argument. You selected column A if the answer choice weakened the argument and column B if it strengthened the argument. GMAC tested a variety of question formats and they plan to announce more details about the new section in the summer of 2011.

If you’d like to keep up with the latest news about the new GMAT, you can check out Of course, the more important question on everybody’s mind is, “Should I take the current GMAT or wait for the new GMAT?” If you are planning to apply to business school soon, you’ll probably need to take the current GMAT. If you are planning to apply to business school in a few years, you need to remember that most of the new GMAT is going to look like the current GMAT. You’ll also want to remember that current scores are good for 5 years. There’s been no change to that policy. Historically, schools have been very good about taking either new format or old format scores during transition times when tests change. As always, however, the admissions department is the best resource for a specific school’s policy. WHAT IS THE PRINCETON REVIEW? The Princeton Review is a test-preparation company founded in New York City. It has branches in more than 50 cities across the country, as well as abroad. The Princeton Review’s techniques are unique and powerful, and they were developed after a study of thousands of real GMAT questions. They work because they are based on the same principles that are used in writing the actual test. The Princeton Review’s techniques for beating the GMAT will help you improve your scores by teaching you to think like the test writers take full advantage of the computer-adaptive algorithms upon which the GMAT is based find the answers to questions you don’t understand by using Process of Elimination avoid the traps that test writers have set for you (and use those traps to your advantage) A Warning Many of our techniques for beating the GMAT are counterintuitive. Some of them seem to violate common sense. To get the full benefit of our techniques, you must trust them. The only way to develop this trust is to practice the techniques and persuade yourself that they work. Practice with Real Questions One reason coaching books do not use real GMAT questions is that GMAC won’t let them. So far, the council has refused to let anyone (including us) license actual questions from old tests. As we mentioned above, the council has its own review book called The Official Guide for GMAT Review, which we heartily recommend that you purchase. GMAC also puts out preparation software called GMATPrep, which can be downloaded for free from This software includes two computer-adaptive tests plus additional practice sets, all of which feature real GMAT questions. By practicing our techniques on real GMAT items, you will be able to prove to yourself that the techniques work and increase your confidence when you actually take the test. And, remember, by using The Princeton Review’s practice questions grouped by level of difficulty at the back of this book, you’ll be able to concentrate on types of questions you are actually likely to see. There’s More to This Book Than This Book When preparing for the GMAT, don’t forget to take advantage of the many resources that accompany this book. Register your book at, and you’ll gain access to our computer- adaptive practice tests, drills, lessons, and more. All of these tools will help you reinforce what you’ve learned in this book and take it to the next level.

Summary By using a combination of the Princeton Review’s math and verbal reviews, the practice questions contained in this book, and periodic simulated tests, you will be able to improve your score on the GMAT. The test itself is taken on computer. It consists of the following:

Chapter 2 How to Think About the GMAT If you think the GMAT tests your business knowledge or shows how smart you are, you’re in for a surprise. This chapter will give you a new way to look at the GMAT to guide your studies in the right direction.

Are You a Genius Or an Idiot? If you’re like most people, you think that standardized tests measure how smart you are. If you score 800 on the GMAT, you may think of yourself as a genius (and the future manager of a corporate empire). If you score 200, you may think of yourself as an idiot (and the future manager of well nothing). You may think that the GMAT measures your verbal and math abilities. At the very least, you probably believe that the GMAT is an accurate predictor of how you’ll do in business school. What Does the GMAT Measure? The GMAT is not a test of how smart you are. Nor is it a test of your business acumen or even a predictor of your grades in business school. It’s simply a test of how good you are at taking the GMAT. In fact, you will learn that by studying the very specific knowledge outlined in this book, you can substantially improve your score. The GMAT as a Job Interview The first axiom of any how-to book on job interviewing is that you must always tell your interviewer what he or she wants to hear. No matter whether this is good job-hunting advice, it happens to be a very useful strategy on the GMAT. The test writers think in predictable ways. You can improve your score by learning to think the way they do and anticipating the kinds of answers that they think are correct. How Closely Does The Princeton Review Monitor the GMAT? Very closely. Each year, we publish a new edition of this book to reflect the subtle shifts that happen over time, as well as any changes in question types. These changes show up as experimental questions several years before they ever actually make it to the real exam. For the latest information on the GMAT, please visit our website at Is This Book Just Like The Princeton Review Course? No. You won’t have the benefit of taking five computer-adaptive GMATs that are scored and analyzed by our computers. You won’t get to sit in small classes with seven other highly motivated students who will spur you on. You won’t get to work with our expert instructors who can assess your strengths and pinpoint your weaknesses. There is no way to put these things in a book. What you will find in this book are some of the techniques and methods that have enabled our students to crack the system—plus a review of the essentials that you cannot afford not to know. If at all possible, you should take our course. If that is not possible, then use this book. How to Crack the System In the following chapters we’re going to teach you our method for cracking the GMAT. Read each chapter carefully. Some of our ideas may seem strange at first. For example, when we tell you that it is sometimes easier to answer GMAT questions without actually working out the entire problem, you may think, “This isn’t the way I conduct business.” But the GMAT Isn’t About Business We’re not going to teach you business skills. We’re not going to teach you math and English. We’re going to teach you the GMAT.

Chapter 3 Cracking the System: Basic Principles This chapter will show you how the computer-adaptive GMAT really works. You will learn to pace yourself and to take advantage of the test’s limitations.

HOW THE COMPUTER-ADAPTIVE GMAT WORKS To understand how to beat the computer-adaptive GMAT, you have to understand how it works. Unlike paper-and-pencil standardized tests that begin with an easy question and then get progressively tougher, the computeradaptive test always begins by giving you a medium question. If you get it right, the computer gives you a slightly harder question. If you get it wrong, the computer gives you a slightly easier question, and so on. The idea is that the computer will zero in on your exact level of ability very quickly, which allows you to answer fewer questions overall and allows the computer to make a more finely honed assessment of your abilities. To check out which b-schools are the “Toughest to Get Into,” take a look at the rankings on your online student tools. If you haven’t registered yet, go to cracking What You Will See on Your Screen During the test itself, your screen will display the question you’re currently working on, with little circles next to the five answer choices. To answer the question, you use your mouse to click on the circle next to the answer choice you think is correct. Then you press a button at the bottom of the screen to verify that this is the answer you want to pick. What You Will Never See on Your Screen What you will never see is the process by which the computer keeps track of your progress. When you start each section, the computer assumes that your score is average. So, your starting score for each section is around a 30. As you go through the test, the computer will keep revising its assessment of you based on your responses. Let’s watch the process in action. In the left-hand column on the next page, you’ll see what a hypothetical test taker—let’s call her Jane—sees on her screen as she takes the test. In the right-hand column, we’ll show you how GMAC keeps track of how she’s doing. (We’ve simplified this example a bit in the interest of clarity.) WHAT JANE SEES: To regard the overwhelming beauty of the Mojave Desert is understanding the great forces of nature that shape our planet. understanding the great forces of to understand the great forces to to understand the great forces of understanding the greatest forces in understanding the greater forces on WHAT JANE D OESN’T SEE: When you start each section, the computer assumes that your score is average. So, your starting score for each section is around a 30.

Jane gets the first question right (the third answer down—what we’ll call C), so her score goes up to a 35, and the computer selects a harder problem for her second question. WHAT JANE SEES: Hawks in a certain region depend heavily for their diet on a particular variety of field mouse. The killing of field mice by farmers will seriously endanger the survival of hawks in this region. Which of the following, if true, casts the most doubt on the conclusion drawn above? The number of mice killed by farmers has increased in recent years. Farmers kill many other types of pests besides field mice without any adverse effect on hawks. Hawks have been found in other areas besides this region. Killing field mice leaves more food for the remaining mice, who have larger broods the following season. Hawks are also endangered because of pollution and deforestation. WHAT JANE D OESN’T SEE: The computer happens to select a critical reasoning problem. Oops. Jane gets the second question wrong (the correct answer is the fourth answer down—what we call choice D), so her score goes down to a 32, and the computer gives her a slightly easier problem. WHAT JANE SEES: Nuclear weapons being invented, there was wide expectation in the scientific community that all war would end.

Nuclear weapons being invented, there was wide expectation in the scientific community that When nuclear weapons were invented, expectation was that As nuclear weapons were invented, there was wide expectation that Insofar as nuclear weapons were invented, it was widely expected With the invention of nuclear weapons, there was wide expectation that WHAT JANE D OESN’T SEE: Jane has no idea what the correct answer is on this third question, but she guesses choice E and gets it correct. Her score goes up to a 33. You get the idea. At the very beginning of the section, your score moves up or down in larger increments than it does at the end, when GMAC believes it is merely refining whether you deserve, say, a 42 or a 43. The questions you will see on your test come from a huge pool of questions held in the computer in what the test writers call “difficulty bins”—each bin with a different level of difficulty. The Experimental Questions Unfortunately, approximately one-fourth of the questions that you answer won’t actually count toward your score. The difficulty of an experimental question does not depend on your answer to the previous question. You could get a question right and then immediately see a fairly easy experimental question. So, if you are answering mostly upper-medium questions and suddenly see a question that seems too easy, there are two possibilities: a) you are about to fall for a trap, or b) it’s an experimental question and really is easy. That means it can be very difficult for you to judge how you are doing on the section. So, don’t try! Your best strategy is to simply try your best on every question. Remembering that experimental questions are included throughout the section can also help you use your time wisely. When you get stuck on a question—even one of the first ten questions—remember that it might be experimental. Spending an inordinate amount of time on one question could cause you to rush and make silly mistakes later. Would you really want to do that if the question turned out to be experimental? Eliminate what you can, guess, and move on in those situations. What the Computer-Adaptive GMAT Uses to Calculate Your Score The GMAT keeps a running tally of your score as it goes, based on the number of questions you get correct and their levels of difficulty—but there are two other important factors that can affect your score: Early questions, which count more than later questions Questions you leave unanswered, which will lower your score

How much can leaving questions at the end unanswered damage your score? GMAC says that somebody who was on track to score in the 91st percentile will drop to the 77th percentile by leaving just five questions unanswered. Answer every question! Why Early Questions Count More Than Later Questions At the beginning of the test, your score moves up or down in larger increments as the computer homes in on what will turn out to be your ultimate score. If you make a mistake early on, the computer will choose a much easier question, and it will take you a while to work back to where you started from. Similarly, if you get an early problem correct, the computer will then give you a much harder question. However, later in the test, a mistake is less costly—because the computer has decided your general place in the scoring ranks and is merely refining your exact score. While it is not impossible to come back from behind, you can see that it is particularly important that you do well at the beginning of the test. Answering just a few questions correctly at the beginning will propel your interim score quite high. Pace Yourself Make sure that you get these early questions correct by starting slowly, checking your work on early problems, and then gradually picking up the pace so that you finish all the problems in the section. Still, if you are running out of time at the end, it makes sense to spend a few moments to guess intelligently on the remaining questions using POE rather than random guesses or (let’s hope it never comes to this) not answering at all. You will be pleased to know that it is possible to guess on several questions at the end and still end up with a 700. On the next page, you’ll find our pacing advice for math and verbal. The charts will tell you how much time you should spend for each block of ten questions based on a practice test score.

The Princeton Review Approach to the GMAT To help you ace the computer-adaptive GMAT, this book is going to provide you wi

Part VII: The Princeton Review GMAT Practice Test and Explanations 22 GMAT Practice Bins 23 GMAT Practice Bins: Answers and Explanations About the Author. Acknowledgments Our GMAT course is much more than clever techniques and powerful computer score reports; the reason our results are great is that

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