Question

Difficulty: EasyDistinguishing Inferences from Assumptions and Speculations

In 2025, Apex Motors produced 10,000 electric vehicles, all of which were manufactured at its main manufacturing plant in City X. In that same year, 30 percent of the electric vehicles produced by Apex Motors were exported to international markets, while the remainder were sold domestically.

Which of the following statements can be properly inferred from the information provided above?

  1. Apex Motors sold exactly 7,000 electric vehicles domestically in 2025.Answer
  2. B
    Apex Motors will increase its total production of electric vehicles in 2026.
  3. C
    Domestic market demand for Apex Motors' electric vehicles was higher than international demand in 2025.
  4. D
    Apex Motors manufactured 3,000 electric vehicles at plants located outside City X in 2025.
  5. E
    International sales generated higher total profit for Apex Motors than domestic sales in 2025.

Answer

Apex Motors sold exactly 7,000 electric vehicles domestically in 2025.
The passage establishes that Apex Motors produced 10,000 electric vehicles, 30 percent of which were exported and the remainder (70 percent) were sold domestically. Calculating 70 percent of 10,000 yields exactly 7,000 vehicles sold domestically. Therefore, this statement must be strictly true based solely on the provided premises.

Step-by-Step Solution

1
Identify the given facts in the passage
Total production = 10,000 vehicles. Exported percentage = 30%. Domestic percentage = remainder (100% - 30% = 70%).
Inference questions require deductions based strictly on the provided factual premises.
2
Calculate the domestic sales quantity
70% of 10,000 = 7,000 vehicles.
Mathematical certainty derived directly from the explicit facts.
3
Evaluate options against strict 'Must Be True' criterion
The statement calculating 7,000 domestic vehicle sales is guaranteed to be true, while all other options introduce unstated assumptions or speculative claims.
A valid GMAT inference must follow logically from the premises without external assumptions.

Key Concept

Distinguishing mathematical/deductive inferences from unstated assumptions and speculative claims
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