PT129.S2.Q3 > Analytics

SECTION 1 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25

SECTION 2 · lr

SECTION 3 · lr

SECTION 4 · rc

PASSAGE 1

Question 1 Question 2 Question 3 Question 4 Question 5

PASSAGE 2

Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12

PASSAGE 3

Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19

PASSAGE 4

Question 20 Question 21 Question 22 Question 23 Question 24 Question 25 Question 26 Question 27

MetroBank offered loans with increasing monthly payments over five years, yet average monthly loan payments to MetroBank had decreased by the end of the five-year term.

The correct answer will be a hypothesis explaining how average monthly payments actually decreased by the end of the five-year term, despite the graduated payment plan. Because we're concerned with the average of the ten companies' payments, the explanation could involve all of the companies or just a few.

We’re talking about the ten companies in question. It doesn’t matter how MetroBank handled other companies.

It doesn’t matter where else the small companies get their money from. We need to know why the average payment to MetroBank specifically ended up decreasing.

Our concern is just with the repayment of these ten loans offered by MetroBank. Other banks don’t factor into our problem.

By the end of the five-year term, only seven companies were still paying off their loans. Their loan payments were still increasing, but since the bigger borrowers were already out of the picture, MetroBank received a lower average payment. This explains the confusion.

According to the stimulus, the loans issued to small companies all had graduated payment plans, meaning the monthly payments were increasing. The terms of other loans are irrelevant to us.

Question

96% of people who answer get this correct

This is a slightly challenging question.

CURVE

Score of students with a 50% chance of getting this right

25% 127

136

75% 144

Question Stem Tags

Resolve reconcile or explain

Stimulus Tags

Math

Popularity Avg. score

158

150

154

96%

165

154

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PrepTest 129 - Section 2 - Question 3

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