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An ARCO Book
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ISBN 13: 978-0-7689-2312-4
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Printed in the United States of America

What Is the GMAT? 3
What Is the CAT? 3
How Do You Register for the GMAT? 4
What Kinds of Questions Are on the Test? 4
How Is the Test Structured? 5
Can You Prepare for the GMAT? 5
What Is a GMAT Study Plan? 6
How Can You Tell If Your Work Is Paying Off? 6
How Is the Test Scored? 7
Can I Predict My GMAT Score? 7
What Smart Test-Takers Know 8
Summing It Up 12
2 GMAT Questions: A First Look 13
What Can You Expect on the Test? 13
How Does the GMAT Test Verbal Reasoning Ability? 14
How Does the GMAT Test Quantitative Reasoning Ability? 19
Summing It Up 22
PART II: DIAGNOSING STRENGTHS AND
WEAKNESSES
3 Practice Test 1: Diagnostic 29
Analytical Writing Assessment 29
Verbal Section 31
Quantitative Section 45
Answer Key and Explanations 54
PART III: GMAT VERBAL QUESTIONS
4 Reading Comprehension 75
What Is Reading Comprehension? 75
How Do You Answer Reading Comprehension Questions? 78
What Smart Test-Takers Know 86
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Summing It Up 268
8 Data Sufficiency 269
What Is Data Sufficiency? 269
How Do You Answer Data Sufficiency Questions? 271
What Do the Answer Choices Mean? 273
What Smart Test-Takers Know 277
Exercise 1 284
Exercise 2 292
Answer Key and Explanations 296
Summing It Up 305
PART V: THE WRITING SECTION
9 Analytical Writing Assessment 309
What Is the Analytical Writing Assessment? 309
How Is the Assessment Graded? 310
How Do You Handle the Analytical Writing Assessment? 312
What Smart Test-Takers Know 312
Summing It Up 316
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Contents vii
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PART VI: GMAT MATH REVIEW
10 Arithmetic 319
Operations with Integers and Decimals 319
Exercise 1 322
Answers and Explanations 322
Operations with Fractions 323
Exercise 2 326
Answers and Explanations 327
Verbal Problems Using Fractions 328
Exercise 3 329

Exercise 6 381
Answer Key and Explanations 382
Factoring and Algebraic Fractions 383
Exercise 7 385
Answer Key and Explanations 387
Problem Solving in Algebra 388
Exercise 8 396
Answer Key and Explanations 398
Inequalities 399
Exercise 9 401
Answer Key and Explanations 403
Defined Operation Problems 404
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viii Contents
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Exercise 10 405
Answer Key and Explanations 406
12 Geometry 407
Area 407
Perimeter 409
Circles 409
Volume 411
Triangles 411
Right Triangles 412
Parallel Lines 413
Polygons 414
Similar Polygons 415
Coordinate Geometry 416
Exercise 417
Answer Key and Explanations 420

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ix
Before You Begin
HOW THIS BOOK IS ORGANIZED
Taking the GMAT is a skill, so it shares some things in common with other skills
such as playing basketball or singing opera. These are skills that can be
improved by coaching, but ultimately improvement also requires practice. This
book gives you both.
• “Top 10 Ways to Raise Your Score” includes some of the most valuable
test-taking strategies to help you score high on the GMAT as well as a chart
to help you track your progress.
• Part I provides essential information about the GMAT, including where to
take it and how it is scored. You’ll also learn what subjects are covered and
what traps to watch out for.
• Part II is a full-length diagnostic test, which is your first chance to work
with samples of every GMAT question type. It can show you where your
skills are strong—and where they need some shoring up.
• Parts III through V are the coaching program. They analyze each question
type for you and give you powerful test-taking strategies. These strategies
are based on more than 20 years of careful study of the GMAT.
• Part VI is a full-scale review of GMAT mathematics. If your math skills are
rusty and need refreshing, this section is for you.
• Part VII contains five practice tests followed by detailed answer explana-
tions for each question. The answer explanations are very important
because it is there where you can learn from your mistakes.
• The Appendixes contain critical information on how to create a winning
business school application, including a before and after look at two personal
statements.
SPECIAL STUDY FEATURES
ARCO Master the GMAT is designed to be as user-friendly as it is complete. To

programs and financial aid opportunities.
YOU’RE WELL ON YOUR WAY TO SUCCESS
You’ve made a decision to apply to graduate school. ARCO Master the GMAT will
prepare you for the steps you’ll need to take to achieve your goal—from scoring high
on the test to being admitted to the graduate program of your choice.
GIVE US YOUR FEEDBACK
Thomson Peterson’s publishes a full line of resources to help guide you through the
graduate school admission process. Peterson’s publications can be found at your local
bookstore, library, and high school guidance office, and you can access us online at
www.petersons.com.
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Before You Begin xi
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We welcome any comments or suggestions you may have about this publication and
invite you to complete our online survey at www.petersons.com/booksurvey. Your
feedback will help us to provide personalized solutions for your educational
advancement.
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xii Before You Begin
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TOP 10 WAYS TO RAISE YOUR SCORE
When it comes to taking the GMAT, some test-taking skills will do you more good than
others. There are concepts you can learn, techniques you can follow, and tricks you can
use that will help you to do your very best. Here’s our pick for the top 10 ways to raise
your score:
1. Create a study plan and follow it. The right GMAT study plan will help you get
the most out of this book in whatever time you have. See chapter 1.
2. Don’t get stuck on any one question. Since you have to answer questions in order
to keep moving, you can’t afford to spend too much time on any one problem. See
chapter 2.

2. Enter the total number of questions that you answered correctly for both the Verbal and
Math parts for that exam in the “TOTAL” row.
3. Enter your Verbal and Math subscores using the table provided on page 8.
4. To keep track of your progress in each of the content areas, enter the number of items
of each type that you answered correctly into the appropriate row.
5. Enter your overall (3-digit) score using the table provided on page 8.
6. Note: Exercise caution in interpreting the data. Because a book-based exam cannot
simulate in every respect a computer-based exam, results tend to be volatile. Do not
place too much emphasis on small differences in performance.
Diagnostic Practice Practice Practice Practice Final
Test Test 2 Test 3 Test 4 Test 5 Practice Test
GMAT Score Tracker
Verbal
Math
TOTAL
Verbal Subscore
Sentence Correction Subtotal
Critical Reasoning Subtotal
Reading Comp. Subtotal
Math Subscore
Problem Solving
Data Sufficiency
OVERALL SCORE
TRACK YOUR PROGRESS
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P
ART I
GMAT BASICS
CHAPTER 1 All About the GMAT

The computer-based version of the GMAT is called a Computer-Adaptive Test (CAT).
The CAT differs from the old paper-based GMAT in that a computer program chooses
problems based on a candidate’s responses to previous questions. Thus, the CAT is
“adaptive” or “interactive.” Whereas candidates taking the old paper-based test were
presented with a range of questions (including easy, moderately difficult, and difficult
items), the CAT selects questions according to each candidate’s ability. During a CAT,
the computer controls the order in which test items appear, basing its selection on the
candidate’s responses to earlier items.
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4 PART I: GMAT Basics
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At the risk of oversimplifying, the testing procedure can be described as follows. The
computer has access to a large number of test items classified according to question type
(sentence correction, reading comprehension, critical thinking, problem solving, and
data sufficiency—the question types that you will study below) and arranged in order
of difficulty. At the outset, the computer presents you with one or two “seed” questions,
items of average level of difficulty. If you answer those successfully, the program selects
for the next question an item of greater difficulty; if you do not answer the “seed”
questions correctly, the program lowers the level of difficulty. This process is repeated,
with the program continuing to adjust the level of difficulty of questions, until you have
provided all the answers that the computer needs to calculate your score.
HOW DO YOU REGISTER FOR THE GMAT?
You can register in either of the following two ways:
• Online at www.mba.com if you have a Visa, MasterCard, or American Express card.
• By calling one of the hundreds of test centers listed on www.mba.com.
To schedule your test, you must contact one of the designated test centers and make
an appointment. While it is possible to make the appointment even just a few days
before you would like to take the test, it is better to schedule a few weeks in advance
to ensure that you get an appointment that is convenient for you.
WHAT KINDS OF QUESTIONS ARE ON THE TEST?

set of directions. You are given a question with two associated statements that
provide information that might be useful in answering the question. You then have
to determine whether either statement alone is sufficient to answer the question;
whether both are needed to answer the question; or whether there isn’t enough
information given to answer the question.
There is also an essay component. The essay component is called the Analytical Writing
Assessment or AWA. The AWA consists of two 30-minute writing exercises:
• One “prompt” or topic asks you to analyze an issue.
• A second “prompt” or topic asks you to analyze an argument.
HOW IS THE TEST STRUCTURED?
The following chart shows the structure of a typical GMAT Computer-Adaptive Test.
ANATOMY OF A TYPICAL GMAT
Number of
Section Questions Time
Warm-up Period —
Analytical Writing Assessment
Issue Topic 30 min.
Argument Topic 30 min.
(optional break) 5 min.
Quantitative Section 37 75 min.
(optional break) 5 min.
Verbal Section 41 75 min.
The warm-up period is untimed and contains no questions that count toward a score.
Instead, the warm-up period allows you to become familiar with the computer (the
mouse and scroll bar functions in particular) and with the peculiarities of the program
itself.
CAN YOU PREPARE FOR THE GMAT?
This is the question of the day. Can you indeed prepare for a test that purports to test
your aptitude for success in business school rather than your mastery of any particular
subject? Of course you can. The GMAT is long, and some of its questions are tough, but

The next step is to see how you do with the exercises at the end of each chapter. Compare
your scores to your results on the diagnostic test. Have you improved? Where do you still
need work?
After you score a practice test, make another comparison to the chapter exercises and
to the diagnostic test. This will show you how your work is paying off.
TIP
To make the most of
your study time, study
the difficult sections
first. If you run out of
time later, you can
just skim the sections
that are easy for you.
NOTE
There’s no secret to
preparing for the
GMAT, but you have
to have a plan. You
can follow one of the
plans here or create
your own. Either way,
a plan will keep you
on track.
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Chapter 1: All About the GMAT 7
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HOW IS THE TEST SCORED?
The multiple-choice parts of the test are not scored in the traditional way; that is, a
grader does not compare a completed answer document to a key in order to calculate
a final score based upon total performance. Rather, the computer “builds” your score

The use of computer-adaptive testing technology makes it difficult to predict your
actual GMAT score based on your performance on a paper-and-pencil practice test. We
have tried, however, to develop a scoring table that provides a general idea of your
performance at this point in your preparation. To predict your score on the practice
tests in this book, count the correct answers in each section and find that number in the
left column of the charts below. The corresponding number in the right column
represents an approximation of your GMAT test score.
NOTE
Why does the GMAT
use scaled scores?
Quite frankly, be-
cause they are
convenient. They are
the “bar codes” of
business school
admissions.
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8 PART I: GMAT Basics
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VERBAL SUBSCORE (C = CORRECT; S = SCORE)
CS CS CS CS CS CS
41 60 34 48 27 34 20 20 13 6 6 0
40 60 33 46 26 32 19 18 12 4 5 0
39 58 32 44 25 30 18 16 11 2 4 0
38 56 31 42 24 28 17 14 10 0 3 0
37 54 30 40 23 26 16 12 9 0 2 0
36 52 29 38 22 24 15 10 8 0 1 0
35 50 28 36 21 22 14 8 7 0 0 0
MATH SUBSCORE (C = CORRECT; S = SCORE)
CS CS CS CS CS

In the event that the individual graders assign scores that are more than one point
apart, e.g., 2 and 4, then the essay is graded by a third reader.
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Chapter 1: All About the GMAT 9
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YOU CAN ENJOY THE “BUTTERFLIES”
Taking the GMAT is an anxiety-generating experience. Fortunately, “butterflies” are
just a symptom of performance anxiety—a kind of adrenaline rush. This was true even
of the paper-based version of the GMAT. The “butterflies” are nature’s way of saying
that you are raring to go.
YOUR JOB IS TO FOCUS ON THE TASK
When placed in a strange and stressful situation, it is natural to worry—sometimes
about the wrong things because their significance is not clear. In order to make the CAT
experience as non-stressful as possible, the testing authority has gone to great pains
to create a detailed list of “specs” to which each computerized testing center must
conform—right down to the number and size of the storage lockers that are available
for personal items not permitted in the testing room. You should be concerned only
about things that will make a difference in your score.
YOU SHOULD CONCENTRATE ON FLYING THE PLANE; THE COMPUTER IS
YOUR NAVIGATOR
Don’t worry about where you are going. The computer will take care of the navigation,
moving you up or down the algorithmic ladder of difficulty until you arrive at the
appropriate score—which is your final destination. If you try second-guessing the
computer (am I moving up or down?), then you are wasting mental energy that is
needed to answer questions.
IF YOU ARE COMPUTER CHALLENGED, YOU SHOULD BUY, BEG, BORROW, OR RENT ONE
Now, first of all, you are not a “complete dummy” even if you have never used a
computer. You’ve certainly seen them in a bank, or a grocery store, or at a friend’s home,
so you have some idea of what one looks like and what it is supposed to do. But there
is a big difference between knowing what a car looks like and knowing how to drive one.

may be possible to eliminate one or more of those other choices as non-answers. Look
at the reading comprehension question below.
The author argues that the evidence supporting the new theory is
(A) hypothetical
(B) biased
(C) empirical
(D) speculative
(E) fragmentary
You might think that it is impossible to make any progress on a reading comprehension
question without the reading selection, but you can eliminate three of the five answers
in this question as non-answers. How? Read on.
Study the question stem. We can infer that the author of the selection has at least
implicitly passed judgment on the evidence supporting the new theory. What kind of
judgment might someone make about the evidence adduced to support a theory? (A),
(C), and (D) all seem extremely unlikely. As for (A), while the theory is itself a
hypothesis, the evidence supporting the theory would not be hypothetical. As for (C),
evidence is empirical by definition. So it is unlikely that anyone would argue “This
evidence is empirical.” And (D) can be eliminated for the same reason as (A).
Admittedly, this leaves you with a choice of (B) or (E), a choice that depends on the
content of the reading selection; but at least you have a 50–50 chance of getting the
question correct—even without reading the selection.
YOU MUST ANSWER QUESTIONS IN THE ORDER PRESENTED
On a CAT exam, you must answer every question in the order presented. Since the
exam adapts itself in response to your answers, you cannot skip and later return to any
questions. And, you cannot rethink and change your answer at a later time. You cannot
seek out and answer the easier question styles first. In other words, you must do the
best you can to answer each question. Choose the answer that you have determined is
best, confirm your choice, and move on to the next question.
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Chapter 1: All About the GMAT 11

appointment for the GMAT for a time when you are likely to be at your peak.
TIP
When you’re guess-
ing, play the odds.
If you can eliminate
one answer choice,
your guess has a
25% chance of being
right. Eliminate two
choices, and you
have a 33
1
3
%
chance. Eliminate
three choices and
you have a 50%
chance of guessing
correctly.
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