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GMAT Review: Data Insights

Review data insights for this GMAT question with the key prompt clue, correct-answer reasoning, distractor checks, and sources to verify next.

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This question-specific review guide is tied to the answer reasoning for a PracticeTestVault item. Use it after you answer the question so the review stays focused on what the prompt actually tested.

What this question is testing

Objective: Data Insights

Prompt focus: A company's profit margin is calculated as profit divided by revenue. If revenue is 250,000 dollars and profit is 40,000 dollars, what is the profit margin, rounded to the nearest whole percent?

Why the correct answer works

16 percent

Dividing 40,000 by 250,000 gives 0.16, which is 16 percent.

Why the tempting wrong answer fails

The tempting wrong answer usually loses because it skips the key condition, priority, or evidence in the prompt.

Plain-language takeaway

Profit margin is profit divided by revenue, so 40,000 divided by 250,000 equals 0.16, or 16 percent.

Simple analogy

Think of data insights like following a short checklist: identify the clue, confirm the rule, and then make the move that fits this exact scenario.

How to review it before a retake

  • Underline the command word and name what the question is asking before rereading the choices.
  • Compare the correct answer against the closest distractor and write the exact detail that separates them.
  • Retest this objective with a fresh question without looking at the rationale first.

Sources to verify next