Tag Archives: GMAT practice tests

That official GMAT question might cost $3000

 

I spend a lot of time telling GMAT students that no GMAT practice problems can ever be as good as real, retired questions from official GMAT tests and publications. And if you read a bunch of GMAT blog posts written by other GMAT test-prep “experts”, you’ll find that many of them seem to disagree with me – since they’re trying to sell you a nice bundle of non-official GMAT questions and exams.

Sometimes, even my own GMAT students object when I tell them to avoid using knockoff GMAT tests from, say, Manhattan GMAT or Veritas: “How terrible could those materials be? There are smart people working at those GMAT test-prep companies, right?”

Yes, of course there are smart people working at GMAT test-prep companies – though some test-prep firms clearly employ smarter GMAT question-writers than others. But even at their best, no GMAT test-prep company can possibly compete with the precision of real, official GMAT questions. Part of the reason is that copying the style of an intricate standardized test is inherently challenging, but the bigger reason is basic economics.

If you’re reading a GMAT blog, you’re probably a business-savvy future MBA student, and you probably have some intuition for the business models of companies like Kaplan or Manhattan GMAT. So take a guess: how much do you think those test-prep companies spend developing each individual question on their GMAT practice tests or in their GMAT books? Go ahead and think of a number.

OK, got something in mind? Great. Personally, I would imagine that GMAT test-prep companies spend something in the range of $5-30 per “knockoff” GMAT question if they actually want to make a profit, but I could be wrong.

Now let’s ask Dr. Lawrence Rudner, former GMAT Chief Psychometrician, how much the GMAT’s developers spend on each practice question:

Test items are costly to develop, often in the range of US$1,500 to US$2,500 per item.

This comes straight from a paper that Rudner presented at the GMAC Conference on Computer Adaptive Testing way back in 2007. If question development costs have kept pace with inflation, then each GMAT question would cost somewhere between $1,700 to $3,000 per question in 2016, though that figure could be even higher if shortages of trained psychometricians continue to inflate GMAT development costs.

(Incidentally, I got halfway through a PhD in education policy and psychometrics – the statistical science behind standardized testing – before I came to my senses and realized that I’m much happier as a GMAT tutor than as an academic or psychometrician. If you’re interested in a career in psychometrics, send me an email, and I’ll do my best to help out.)

So yeah: that GMAT question you saw on the latest version of the exam? It might have cost $3000 or more to develop – perhaps 100 times more than a GMAT test-prep company could reasonably spend on each question.

And if that sounds batsh*t crazy – or at least wildly inefficient – it probably isn’t. Actual GMAT test items go through a painstaking cycle of editing, testing (often as “experimental questions” on actual GMAT tests), re-editing, and re-testing before they actually become part of a real GMAT exam. For every question that actually makes its way onto the GMAT, countless others are discarded for any number of reasons. For example, there might be evidence that the discarded GMAT questions were phrased badly, that they don’t seem to capture the skills the GMAT promises to measure, or that they (accidentally) discriminate against GMAT test-takers from certain demographic groups. Much of this testing requires substantial skill and training – and employees with these skills certainly aren’t inexpensive.

You probably know that I’m not particularly impressed by the GMAT’s ability to identify the most talented business leaders, but the GMAT’s creators deserve credit for producing subtle and meticulously phrased questions. How could any GMAT test-prep company possibly produce anything of comparable quality or precision, given test-prep firms’ economic limitations?

So whenever you work through practice tests from major GMAT test-prep companies – or GMAT practice worksheets from an obscure little GMAT tutor dude in Colorado – remember to take your results with a huge grain of salt. Sure, our “knockoff” GMAT questions can probably help you build skills, but none of us can ever give you a truly accurate GMAT practice test – simply because none of us will ever be able to afford to do so if we actually want to keep our doors open.

 

GRE vs. GMAT, part IV: GRE study materials

Thanks in large part to MBA programs’ increasing appetite for the GRE, I’ve had a surge in GRE tutoring inquiries over the past year or so.  The GMAT is still king in the MBA admissions world—and probably will be for a long time—but a surprisingly large proportion of my time is spent on the GRE now.  Even though I actually have a longer history with the GRE than with the GMAT (and I’ll feel really really old if I tell you exactly how long that is), I’ve never seen this level of interest in the GRE among MBA applicants.  So congratulations, GRE:  you’re not winning yet, but you’re in the game now.

In a series of earlier blog posts, I did my best to figure out what types of MBA applicants might be better off taking the GRE instead of the GMAT.  If you really want to read the whole series, I would recommend starting with Part I, but here’s the oversimplified summary:  since MBA programs are more familiar with the GMAT—and since the GRE includes those annoying vocabulary questions—relatively few MBA applicants will actually gain a significant advantage by taking the GRE.  Sure, some applicants are much better off with the GRE, but it’s tough to argue that one test is unambiguously “better” than the other if you’re shooting for a top MBA program.

I did, however, accidentally leave one factor out of the discussion in those three blog posts:  the relatively limited availability of GRE test-prep materials.  If you’re choosing between the GRE and the GMAT and you think that you’ll need a lot of repetition in order to reach your score goals, then the GMAT might be a better bet.

From a test-taker’s perspective, one of the GMAT’s best qualities is that it isn’t difficult to keep yourself busy with high-quality study materials, even if you’re facing a protracted battle with the GMAT beast.  We’re blessed with four full, official GMATPrep practice tests, a beefy bank of nearly 500 additional questions in the GMATPrep Question Pack (which can be used to cobble together additional “fake tests”), and somewhere around 750 quant and 600 verbal questions in the GMAT official guides (including the official GMAT quant and verbal review guides).

If that isn’t enough, we also have the crusty old GMAT paper tests, older editions of the GMAT official guides that can yield a few hundred additional questions, the (deeply flawed) GMAT Focus tests, and a nearly limitless supply of LSAT questions if you need some extra work on CR and RC.  And of course, there’s a healthy ecosystem of GMAT test-prep firms that will happily provide additional materials and practice tests, albeit of lamentably variable quality. 

The bottom line:  it would take literally hundreds of hours of studying to exhaust the supply of worthwhile GMAT materials.  I’ve seen it happen, but it’s a rarity.

Unfortunately, we aren’t nearly as well-endowed when it comes to high-quality GRE materials.  (And yes, I really did just use the phrase “well-endowed” on a GMAT blog.  Judge if you must.)  The official GRE software includes only two full, adaptive practice tests—which means that you should use them very carefully if you’re planning to take the GRE.  There are a total of three additional paper-based GRE practice tests available in the GRE official guide and in an odd corner of the GRE website, but paper-based tests do not even begin to mimic the experience of taking an actual, computer-adaptive GRE exam, and therefore are of somewhat limited value.

The GRE looks even worse when we tally the questions that appear in the GRE official guides.  Even if we include the GRE’s new verbal and quantitative reasoning guides (in addition to the GRE Official Guide), we still have only 210 additional verbal questions and 210 additional quant questions – far fewer than are available for the GMAT.  Sure, it’s possible to supplement the official GRE materials with “knockoff” materials from test-prep firms, but these materials are rarely as useful as official GRE or GMAT questions.  The old GRE official guide (out of print, but still generally available online) is still a decent source of quant practice questions, but the vocabulary questions are completely obsolete, and the quant questions are generally easier than the ones you’ll encounter on an actual, computerized GRE.

So at best, we have maybe half as many high-quality GRE test questions as we do GMAT questions, depending on how you want to define “high-quality.”  If you’re a naturally gifted test-taker, then you probably won’t need that much practice, and the lack of good GRE materials is a non-issue.  But if you’re looking for a huge score improvement, you might have an easier time moving forward on the GMAT than on the GRE.

To be fair, the GRE just experienced a major overhaul in 2011, and because it is incredibly expensive for testing companies to develop operational exam questions, it normally takes quite a few years before retired questions are publicly released.  (The GMAT, after all, only began to sell the Exam Pack, which includes two additional adaptive practice tests, in 2013.)  I can’t blame the GRE’s creators at all:  their job is to create a valid exam, not necessarily to provide us with materials that help us clobber that exam.  But if you already know that you have a long road ahead of you and you’re not sure which test to take, the GMAT’s relative generosity with retired questions might be a decent reason to steer clear of the GRE.