About Thomson PetersonsThomson Petersons (www.petersons.com) is a leading provider of education information and advice, with booksand online resources focusing on education search, test preparation, and financial aid. Its Web site offerssearchable databases and interactive tools for contacting educational institutions, online practice tests andinstruction, and planning tools for securing financial aid. Thomson Petersons serves 110 million educationconsumers annually.

For more information, contact Thomson Petersons, 2000 Lenox Drive, Lawrenceville, NJ 08648;800-338-3282; or find us on the World Wide Web at www.petersons.com/about.

2004 Thomson Petersons, a part of The Thomson CorporationThomson Learning is a trademark used herein under license.

Editors: Mandie Rosenberg and Joe Ziegler; Production Editor: Alysha Bullock; Composition Manager:Gary Rozmierski; Manufacturing Manager: Ray Golaszewski; Cover and Interior Design: Allison Sullivan.

ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or used in anyform or by any meansgraphic, electronic, or mechanical, including photocopying, recording, taping, Webdistribution, or information storage and retrieval systemswithout the prior written permission of the publisher.

For permission to use material from this text or product, submit a request online at www.thomsonrights.comAny additional questions about permissions can be submitted by e-mail to thomsonrights@thomson.com

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Check out our Web site at www.petersons.com/publishing to see if there is any new informationregarding the test and any revisions or corrections to the content of this book. Weve made surethe information in this book is accurate and up-to-date; however, the test format or content mayhave changed since the time of publication.

CreditsThe American Renaissance, by James S. Turner, Humanities, Vol.13, No. 2 (March/April 1992).Published by The National Endowment for the Humanities.

Arnolds Double-Sided Culture, by John P. Farrell, Humanities, Vol. 12, No. 3 (May/June 1991),pp. 2630. Published by The National Endowment for the Humanities.

The Artful Encounter, by Richard Wendorf, Humanities, Vol. 14, No. 4 (July/August 1993), pp.912. Published by The National Endowment for the Humanities.

The Debate Over Mozarts Music, by Neal Zaslaw, Humanities, Vol. 14, No. 5 (September/October 1993), pp. 2627. Published by The National Endowment for the Humanities.

I Am Christina Rossetti, by Antony H. Harrison, Humanities, Vol. 14, No. 4 (July/August1993), pp. 3337. Published by The National Endowment for the Humanities.

Images of Dorothea Lange, by Therese Thau Heyman, Humanities, Vol. 14, No. 5 (September/October 1993), pp. 6, 810. Published by The National Endowment for the Humanities.

Large Format Expands Little Buddha, by Bob Fisher, American Cinematographer, Vol. 75, No. 5(May 1994), p. 41. Reprinted by permission of American Cinematographer.

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ABOUT THIS TOOL KIT. . . . . . . . . . . . . . . . . . . . . . . 1Your Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1About This Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Oh, the Sidebars Youll See. . . . . . . . . . . . . . . . . . . . . 4

PART I: EVERYTHING YOU EVER WANTEDTO KNOW ABOUT THE GMAT

Chapter 1: The GMATIn a Nutshell . . . . . . . . . 6

Chapter 2: The GMATUp Close . . . . . . . . . . . . 41

PART II: ANALYTICAL WRITINGASSESSMENT

Chapter 3: Analytical Writing Assessment . . . . . . 72

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 103

PART III: QUANTITATIVE ABILITYChapter 4: Problem Solving . . . . . . . . . . . . . . . . . . 136

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 152

Chapter 5: Data Sufficiency . . . . . . . . . . . . . . . . . . 164

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 177

Chapter 6: Math ReviewNumber Forms,Relationships, and Sets . . . . . . . . . . . . . . . . . . . . 190

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 214

Chapter 7: Math ReviewNumber Theory andAlgebra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 258

Chapter 8: Math ReviewGeometry . . . . . . . . . . 279

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 303

PART IV: VERBAL ABILITYChapter 9: Critical Reasoning . . . . . . . . . . . . . . . . 332

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 357

Contents

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Chapter 10: Sentence Correction . . . . . . . . . . . . . . 380

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 406

Chapter 11: Reading Comprehension . . . . . . . . . . 429

Take It to the Next Level. . . . . . . . . . . . . . . . . . . 445

PART V: THREE PRACTICE TESTSPractice Test 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470

Answers and Explanations . . . . . . . . . . . . . . . . . 497

Practice Test 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512

Answers and Explanations . . . . . . . . . . . . . . . . . 537

Practice Test 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553

Answers and Explanations . . . . . . . . . . . . . . . . . 577

PART VI: APPENDIXDetermining Your Score . . . . . . . . . . . . . . . . . . . . . . 594

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About This Tool Kit

Your ToolsPetersons Ultimate GMAT Tool Kit provides the complete package youneed to score your personal best on the GMAT and get into yourtop-choice MBA program. Unlike any book previously published, this toolkit contains many features that used to be available only to those whopurchased expensive test-prep classes.

e-TutoringUse the CD to go online to register for one-to-one math help from a liveexpert when you need it. Tutoring is offered using an online white boardshared by you and the tutor that allows you to communicate with oneanother in real time. However, if you prefer, you can submit your mathquestion instead and receive an answer within 24 hours.

The free tutoring offered with this product is limited to 30 minutes,although you may purchase more time if you need it. A written response toa submitted questions counts as 20 minutes. The tutoring service isavailable for six months from the date you register online. The e-tutoringservice offered to purchasers of this 2005 edition will expire on January 1,2006.

This service is available 24 hours a day seven days a week for most of theyear. During the summer it is available from 9 a.m. to 1 a.m. Eastern time.Due to low demand, the service is not available during several holidayperiods including Thanksgiving, Christmas, and Easter, Labor Day, andMemorial Day.

Remember, to register for this service you will need the CD thataccompanies this book. You will also need to refer to this book to providethe access code when prompted.

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Essay ScoringThe CD that accompanies this book allows you to go online to write 2practice test essays online and receive a score for each of them thatapproximates your performance on the essays in the actual GMAT. Inaddition to a score, you will also receive constructive feedback on youressays, including tips to improve your score.

With this tool kit, you get scoring for 2 practice test essaysone analysisof an issue and one analysis of an argument. If you wish, for a fee, you mayobtain scoring information and feedback for additional practice essaysyou write online. Please note: Your practice test essays will be scored by acomputer, but for the actual GMAT test, the essays are scored by acombination of a computer program and a human scorer.

To register for this essay-scoring service you need the CD that accompaniesthis book. In addition, you will need to refer to this book to provide theaccess code when prompted. The scoring of 2 essays is offered free topurchasers of the 2005 edition and this offer will expire on December 31,2005.

Computer-Adaptive Tests on CDThe actual GMAT is a computer-adaptive test (CAT)the test questionsyou so depend on your performance on previous questions. On theCD-ROM that accompanies this book, you will receive 3 practice GMATCATs that carefully reproduce the experience you can expect on test day.The additional three practice tests in the book can be used for furtherpractice.

About This BookOf course, another tool in your Ultimate GMAT Tool Kit is this bookitself. It is structured so that you gain proven test-taking strategies to doyour best on the exam, a thorough review of all content on the GMAT, anda complete understanding of how to attack the GMAT essays.

Part I: Everything You Ever Wanted to Knowabout the GMAT

Part I focuses on the big picture. Here youll learn about the overallstructure of the GMAT and what the test sections cover. Youll alsoexamine the directions for each type of question and see what typical testquestions look like. Then, youll learn strategies for GMAT preparation aswell as general test-taking strategies.

About This Tool Kit

2

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Parts IIIV: Study Guides for the GMATThis books GMAT study guide is unique in that it offers you theopportunity to study each part of the exam, and then you can Take It tothe Next Levelusing the section in each chapter that covers advancedtopics and concepts you may encounter on the GMAT. Each section coversall four test sections and all general question types and both containexample questions. The unique ability to Take It to the Next Level featurewill help you tailor your GMAT prep to your individual needs.

Should You Take it to the Next Level?You should start with the general instruction if either of the followingdescribes you:

Youre a GMAT newbie and you are just beginning yourGMAT prep.

The B-school you want to attend doesnt require especially highGMAT scores for admission.

You can go directly to Take It to the Next Level if youre a repeat GMATtest-taker whose scores were high the first time around but yourGMAT goals are now even higher. Of course, regardless of your goals forthe GMAT and for college admission, you can always work through bothlevels. In fact, thats what we recommend to anyone with enough studytime before exam day.

Part V: Three Practice GMATsIn Part V, youll find three full-length, practice GMATs. Each test covers allfour test sections and includes a mix of easy, moderate, and difficultquestions. To accurately measure your performance on the practice tests,be sure to adhere strictly to the time limits for each and every section.

You can take all three practice tests after completing your self-study (PartsIIIV). Or, you can take one practice test beforehand as a diagnostic tool.If your scores show that you rank above the 80th percentile on a test, youcan skip over the basics to Take It to the Next Level for that test. Then,after youve completed your self-study, take the remaining two practicetests to measure your improvement.

About This Book

3

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Oh, the Sidebars Youll SeeThroughout this book youll encounter four different types of sidebars.(Flip through this book, and youll see oodles of each one.) Heres a look atthe types of sidebars youll see:

Alert!

Warns you about a common testing trick or ploy that mighttrip you up during the test if youre not careful.

Note Signals information that may not be a need-to-know fact,

but that you might find rounds out your knowledge of thetopic at hand.

Tip Signals a tip, strategy, or fine point related to the topic or

example at hand.

X-Ref

Signals a reference to a concept or other information locatedelsewhere in the book.

About This Tool Kit

4

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Everything You EverWanted to Know about

the GMAT

The GMATIn a Nutshell 6

The GMATUp Close 41

PART

I

PART I

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The GMATIn a Nutshell

Your GMAT prep begins with an overview of the test. In this chapter,youll:

Learn Key acronyms related to the GMAT.

Look at the overall structure of the GMAT and what each of thefour test sections cover.

Familiarize yourself with the computerized aspects of the test.

Examine the directions for each for each general question type.

See what typical test questions look like.

Find out how the GMAT is scored and evaluated.

Find out how your scores are reported to the business schools.

Learn strategies for GMAT preparation.

Learn general GMAT test-taking strategies.

Key Acronyms1. GMAT (Graduate Management Admission Test): This standardized

test provides graduate business schools (as well as vocationalcounselors and prospective applicants) with predictors of academicperformance in MBA programs. Approximately 850 graduatebusiness schools worldwide require GMAT scores for admission.Another 450 graduate business schools usebut dont requireGMAT scores to access applicants qualifications.

2. GMAC (Graduate Management Admission Council): This organiza-tion develops guidelines, policies, and procedures for the graduatebusiness school admission process, and provides information aboutthe admission process to the schools and to prospective applicants.The GMAC consists of representatives from more than 100 graduatebusiness schools.

Chapter

1

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3. CAT (Computer-Adaptive Test): Except for some locations outside ofNorth America, the GMAT is now offered only by computer. CATrefers to the computerized version of the GMAT. Taking a computer-adaptive test means that each section of the test starts with a questionof moderate difficulty. If you answer correctly, the computer willfollow it with a more difficult question. If you answer it incorrectly,the following question will be easier.

The GMAT at a GlanceThe GMAT contains three parts: an Analytical Writing Assessmentsection, a Quantitative Ability section, and a Verbal Ability section. Thetotal testing time (excluding breaks) is 3 hours, 30 minutes. Heres thebasic structure of the test:

ANALYTICAL WRITING ASSESSMENT (Sections 1 and 2)

Analysis of an Issue (1 writing task, 30-minute time limit)

Analysis of an Argument (1 writing task, 30-minute time limit)

Optional break (5-minute time limit)

QUANTITATIVE ABILITY (Section 3)(37 multiple-choice questions, 75-minute time limit)

Problem Solving (2223 questions)

Data Sufficiency (1415 questions)

Optional break (5-minute time limit)

VERBAL ABILITY (Section 4)

(41 multiple-choice questions, 75-minute time limit)

Critical Reasoning (1415 questions)

Sentence Correction (1415 questions)

Reading Comprehension (1213 questions, divided amongfour sets)

Sequence of Exam SectionsSections 1 and 2 (the two timed essay sections) always appear first (ineither order), before the two timed multiple-choice sections. Section 3is always Quantitative Ability, and section 4 is always Verbal Ability.

Chapter 1: The GMATIn a Nutshell

7

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Sequence of Questions in Quantitative and VerbalIn each of the two multiple-choice sections, question types areinterspersed. Heres a typical sequence for each section (on yourGMAT, the sequence might be different):

Quantitative Ability (Typical Sequence of Questions)

Questions 12 Problem Solving

Questions 37 Data Sufficiency

Questions 813 Problem Solving

Question 14 Data Sufficiency

Question 15 Problem Solving

Question 16 Data Sufficiency

Questions 1721 Problem Solving

Questions 2227 Data Sufficiency

Questions 2834 Problem Solving

Question 35 Data Sufficiency

Questions 3637 Problem Solving

Verbal Ability (Typical Sequence of Questions)

Questions 13 Sentence Correction

Questions 45 Critical Reasoning

Questions 68 Reading Comprehension

Question 9 Sentence Correction

Questions 1011 Critical Reasoning

Questions 1214 Sentence Correction

Questions 1517 Reading Comprehension

Questions 1821 Critical Reasoning

Questions 2224 Sentence Correction

Questions 2526 Critical Reasoning

Question 27 Sentence Correction

Questions 2830 Reading Comprehension

Questions 3133 Critical Reasoning

Questions 3435 Sentence Correction

Questions 36 Critical Reasoning

Questions 3739 Reading Comprehension

Question 40 Critical Reasoning

Question 41 Sentence Correction

Part I: Everything You Ever Wanted to Know about the GMAT

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Ground RulesHere are some basic procedural rules for the GMAT (later in this chapterwell cover test-taking procedures in greater detail):

Once the timed test begins, you cannot stop the testing clock.

If you finish any section before the time limit expires, you have theoption of proceeding immediately to the next section.

Once you exit a section, you cant return to it.

Pencils and scratch paper are provided for all exam sections.

You select a multiple-choice answer by clicking on an oval next tothe choice. (All multiple-choice questions include five answerchoices.)

You compose both essays using the word processor built into theGMAT testing system. (Handwritten essays are not permitted.)

The Four Timed GMAT SectionsHeres a quick look at what each of the four timed test sections covers.

Analysis of an Issue (1 Essay, 30 Minutes)This 30-minute section tests your ability to present a position on an issueeffectively and persuasively. Your task is to compose an essay in which yourespond to a brief (12 sentence) opinion about an issue of generalintellectual interest. You should consider various perspectives, and take aposition on the issue and argue for that position. Your essay will beevaluated based on content, organization, writing style, and mechanics(grammar, syntax, word usage, etc.).

Analysis of an Argument (1 Essay, 30 Minutes)This 30-minute section is designed to test your critical-reasoning andanalytical-writing skills. Your task is to compose an essay in which youcritique a paragraph-length argument based on the strength of theevidence presented in support of it and on the arguments logic (line ofreasoning). You can also indicate what additional evidence would help you

X-Ref

Later in this chapter, youll see example questions in all of the formatsdescribed here.

Chapter 1: The GMATIn a Nutshell

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evaluate the argument and how the argument could be improved. Likeyour Issue-Analysis essay, your Argument-Analysis essay will be evaluatedbased on content, organization, writing style, and mechanics.

Quantitative Ability (37 Questions, 75 Minutes)This 75-minute section consists of 37 multiple-choice questions designedto measure your basic mathematical skills; understanding of basicmathematical concepts; and ability to reason quantitatively, solve quanti-tative problems, and interpret graphical data. The Quantitative Abilitysection covers the following topics:

Arithmetical operations

Integers, factors, and multiples

The number line and ordering

Decimals, percentages, ratios, and proportion

Exponents and square roots

Descriptive statistics (mean, median, mode, range, standarddeviation)

Basic probability, permutations, and combinations

Operations with variables

Algebraic equations and inequalities

Geometry, including coordinate geometry

Algebraic concepts on the GMAT are those normally covered in afirst-year high school algebra course. The GMAT does not cover moreadvanced areas such as trigonometry and calculus.

Each Quantitative question appears in one of two formats (any of thetopics listed above is fair game for either format):

PROBLEM SOLVING questions require you to solve a mathematicalproblem and then select the correct answer from among five answerchoices. Some of these questions will be story problemscast in areal-world setting.

DATA SUFFICIENCY problems each consist of a question followedby two statements labeled (1) and (2). Your task is to analyze each ofthe two statements to determine whether it provides sufficient data toanswer the question and, if neither suffices alone, whether bothstatements together suffice. Every Data Sufficiency question includesthe same five answer choices. As with certain Problem Solving

Part I: Everything You Ever Wanted to Know about the GMAT

10

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questions, some of these questions will be so-called story problemscast in a real-world setting.

Verbal Ability (41 Questions, 75 Minutes)This 75-minute section consists of 41 multiple-choice questions. Eachquestion will be one of the following three types (each type covers adistinct set of verbal and verbal-reasoning skills):

CRITICAL REASONING questions measure your ability to under-stand, criticize, and draw reasonable conclusions from arguments.Each argument consists of a brief one-paragraph passage.

SENTENCE CORRECTION questions measure your command ofthe English language and of the conventions of Standard WrittenEnglish. Areas tested include grammar, diction, usage, and effectiveexpression (but not punctuation). In each question, part (or all) of asentence is underlined. Your task is to determine which is correcttheoriginal underlined part or one of four alternatives.

READING COMPREHENSION questions measure your ability toread carefully and accurately, to determine the relationships among thevarious parts of the passage, and to draw reasonable inferences fromthe material in the passage. Youll encounter four sets of questions; allquestions in a set pertain to the same passage. The passages are drawnfrom for a variety of subjects, including the humanities, the socialsciences, the physical sciences, ethics, philosophy, and law.

Your GMAT ScoresYoull receive four scores for the GMAT:

1. A scaled Quantitative score on a 060 scale

2. A scaled Verbal score on a 060 scale

3. A total score, on a 200800 scale, based on both yourQuantitative and Verbal scores

4. An AWA score on a 06 scale, which averages (to the nearestone-half point) the final scores for each of your two GMATessays

For each of these four scores youll also receive a percentile rank (099%).A percentile rank of 60%, for example, indicates that you scored higherthan 60% (and lower than 40%) of all other test-takers. Percentile ranks

Chapter 1: The GMATIn a Nutshell

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