GMAT

The Graduate Management Admission Test (GMAT) is a computer adaptive standardized test that helps business schools assess the qualifications of applicants for advanced study in business and management. Schools use the test as one predictor of academic performance in an MBA program or in other graduate management programs. Business schools commonly use the test as one of many selection criteria for admission into an MBA program. The exam measures basic verbal, mathematical and analytical writing skills that the examinees have developed over a long period of time in their education and work. Test takers are given 3.5 hours to answer questions in each of the three tested areas, and there are also two 10-minute breaks; in general, the test takes about four hours to complete. It does not measure specific knowledge of business, job skills, or subjective qualities such as motivation, creativity, and interpersonal skills.

What GMAT Measures?

The GMAT exam measures basic verbal, mathematical, and analytical writing skills that you have developed in your education and work. It does NOT measure:

• your knowledge of business,
• your job skills,
• specific content in your undergraduate or first university course work,
• your abilities in any other specific subject area, or
• subjective qualities—such as motivation, creativity, and interpersonal skills.

Scores are valid for five years (at most institutions) from the date the test taker sits for the exam until the date of matriculation (i.e. acceptance, not until the date of application). The maximum score that can be achieved on the exam is 800, and the 2006/2007 mean score was 533.

The Test Format

The GMAT exam includes Analytical Writing Assessment, Quantitative, and Verbal sections. For the Analytical Writing Assessment, you will be presented with two essay topics and will type your responses using the computer keyboard.
Data Sufficiency and Problem Solving questions are intermingled throughout the Quantitative section, and Sentence Correction, Reading Comprehension, and Critical Reasoning questions are intermingled throughout
the Verbal section. The Verbal and Quantitative sections
contain computer-adaptive multiple-choice questions.
The chart on this page provides timing information for each section of the test. Individual test questions are reviewed on a routine basis to attempt to eliminate language, symbols, or content considered to be potentially offensive or inappropriate for major subgroups of the test-taking
population or that serve to perpetuate any negative
attitude about these subgroups. In addition, statistical
procedures are applied to help identify questions
that may provide an unfair advantage to members
of any particular group.

The quantitative and verbal sections comprise a computer-adaptive test. The first question may be difficult. The next few questions in each section may be around the 500 level. If the examinee answers correctly, the next questions are harder. If the examinee answers incorrectly, the next questions are easier. The questions are pulled from a large pool of questions and delivered depending on the student's running score. These questions are regularly updated to prevent them from being compromised by students recording questions.

Verbal Section

The Verbal section of the test measures your ability to read and comprehend written material, to reason and evaluate arguments, and to correct written material to conform to standard written English. Three types of multiple-choice questions are used in the Verbal section of the GMAT
exam— Reading Comprehension, Critical Reasoning, and Sentence Correction. Reading Comprehension passages are
accompanied by interpretive, applied, and inferential
questions. The passages are up to 350 words long and discuss topics from the social sciences, the physical or biological sciences, and such business-related fields as marketing, economics, and human resource management.
Reading Comprehension questions measure your ability to understand, analyze, and apply information and concepts presented in written form. All questions are to be answered on the basis of what is stated or implied in the reading
material; no specific knowledge of the material
is required. Critical Reasoning questions are designed to test the reasoning skills involved in (1) making arguments,
(2) evaluating arguments, and (3) formulating or evaluating a plan of action. The material on which questions are based is drawn from a variety of sources. No familiarity with the subject matter is presupposed. Sentence Correction questions ask you which of the five choices best expresses an idea or relationship. The questions will require you to be familiar with the stylistic conventions and grammatical rules
of standard written English and to demonstrate your ability to improve incorrect or ineffective expressions.

The verbal section consists of 41 multiple-choice questions, which must be answered within 75 minutes. There are three types of questions: sentence correction, critical reasoning and reading comprehension. The verbal section is scored from 0 to 60 points with a current mean of 27.3/60.

Sentence Correction
This tests grammar and expression. Sentence correction items consist of a sentence, all or part of which has been underlined, with five associated answer choices. The test taker must choose the best way of rendering the underlined part. This question type tests the ability to recognize standard Written English. The task is to evaluate the grammar, logic, and effectiveness of a given sentence and to choose the best of several suggested revisions. Choice (A) repeats the original; the other answer choices vary. It tests the ability to recognize correct and effective expression. It follows the requirements of Standard Written English: grammar, word choice and sentence construction. The goal is to choose the answer that results in the clearest, most exact sentence and does not change the meaning of the original sentence.

Critical Reasoning
This tests logical thinking. Critical thinking items present an argument that the test taker is asked to analyze. Questions may ask test takers to draw a conclusion, to identify assumptions, or to recognize strengths or weaknesses in the argument. It presents brief statements or arguments and ask to evaluate the form or content of the statement or argument. Questions of this type ask the examinee to analyze and evaluate the reasoning in short paragraphs or passages. For some questions, all of the answer choices may conceivably be answers to the question asked. The examinee should select the best answer to the question, that is, an answer that does not require making assumptions that violate common sense standards by being implausible, redundant, irrelevant, or inconsistent.

Reading Comprehension
This tests the ability to read critically. Reading comprehension questions relate to a passage that is provided for the examinee to read. The passage can be about almost anything, and the questions about it test how well the examinee understands the passage and the information in it. As the name implies, it tests the ability of the examinee to understand the substance and logical structure of a written selection. The GMAT uses reading passages of approximately 200 to 350 words. Each passage has three or more questions based on its content. The questions ask about the main point of the passage, about what the author specifically states, about what can be logically inferred from the passage, and about the author's attitude or tone.

Quantitative Section

The Quantitative section of the test measures mathematical skills and understanding of elementary concepts, and the ability to reason quantitatively, solve quantitative problems, and interpret graphic data. Two types of multiple-choice
questions are used in the Quantitative section—Problem Solving and Data Sufficiency. Both types of questions
require knowledge of arithmetic, elementary algebra,
and commonly known concepts of geometry. Problem Solving questions are designed to test mathematical skills, understanding of elementary mathematical concepts, and the ability to reason quantitatively and solve quantitative problems. Each Data Sufficiency question consists of a question and two statements, labeled (1) and (2), which
contain additional information. You must decide whether the data given in the statements are sufficient for answering the question. Data Sufficiency questions are designed to measure your ability to analyze a quantitative problem, to recognize which information is relevant, and to determine at what point there is sufficient information to solve the
problem. For examples of each quantitative question
type and directions for answering them, visit
www.mba.com/gmatprep to download the GMATPrep software.

The quantitative section consists of 37 multiple choice questions, which must be answered within 75 minutes. There are two types of questions: problem solving and data sufficiency. The quantitative section is scored from 0 to 60 points and the current mean score is 35.0/60.

Problem Solving
This tests the quantitative reasoning ability. Problem-solving questions present multiple-choice problems in arithmetic, basic algebra, and elementary geometry. The task is to solve the problems and choose the correct answer from among five answer choices. Some problems will be plain mathematical calculations; the rest will be presented as real life word problems that will require mathematical solutions.

Data Sufficiency
This tests the quantitative reasoning ability using an unusual set of directions. The examinee is given a question with two associated statements that provide information that might be useful in answering the question. The examinee then must determine whether either statement alone is sufficient to answer the question; whether both are needed to answer the question; or whether there is not enough information given to answer the question.

Data sufficiency is a unique type of math question created especially for the GMAT. Each item consists of the questions itself followed by two numbered statements. The examinee must decide whether the statements — either individually or in combination — provide enough information to answer the question.

(A) If statement 1 alone is sufficient to answer the question, but statement 2 alone is not sufficient.
(B) If statement 2 alone is sufficient to answer the question, but statement 1 alone is not sufficient.
(C) If both statements together are needed to answer the question, but neither statement alone is sufficient.
(D) If either statement by itself is sufficient to answer the question.
(E) If not enough facts are given to answer the question

Analytical Writing Assessment

The Analytical Writing Assessment (AWA) consists of two 30-minute writing tasks—Analysis of an Issue and Analysis of an Argument. For Analysis of an Issue, you will need to analyze a given issue or opinion and then explain your point of view on the subject by citing relevant reasons and/or examples drawn from your experience, observations, or reading. For Analysis of an Argument, you will need to analyze the reasoning behind a given argument and then write a critique of that argument. The AWA is designed as a direct measure of your ability to think critically and to communicate your ideas. More specifically, the Analysis of an Issue task tests your ability to explore the complexities of an issue or opinion and, if appropriate, to take a position informed by your understanding of those complexities. The Analysis of an Argument task tests your ability to formulate an appropriate and constructive critique of a specific conclusion based upon a specific line of thinking.

Your essay scores are based on the overall quality of your ideas about the issue and argument presented; your overall ability to organize, develop, and express those ideas; the relevant supporting reasons and examples you use; and your ability to control the elements of standard written English. (Only standard American English characters may be used when entering your essay responses.) The issue and argument topics that you will find on the test concern subject matter of general interest, some related to business and some to a variety of other subjects. It is important to note, however, that none presupposes any specific knowledge of business or of other specific content areas—only your capacity to write analytically is being assessed.
You may download a list of more than 300 possible AWA topics for both Analysis of an Argument and Analysis of an Issue from www. mba.com. These topics are also available in The Official Guide for GMAT Review. Topics from this list may (or may not) or may not appear in your actual GMAT exam.

The Analysis of an Argument task tests your ability to formulate an appropriate and constructive critique of a specific conclusion based upon a specific line of thinking. Your essay scores are based on the overall quality of your ideas about the issue and argument presented; your overall ability to organize, develop, and express those ideas; the relevant supporting reasons and examples you use; and your ability to control the elements of standard written English. (Only standard American English characters may be used when entering your essay responses.) The issue and argument topics that you will find on the test concern subject matter of general interest, some related to business and some to a variety of other subjects. It is important to note, however, that none presupposes any specific knowledge of business or of other specific content areas—only your capacity to write analytically is being assessed.
You may download a list of more than 300 possible AWA topics for both Analysis of an Argument and Analysis of an Issue from www. mba.com. These topics are also available in The Official Guide for GMAT Review. Topics from
this list may (or may not) or may not appear in
your actual GMAT exam.

Each essay must be written within 30 minutes and is scored on a scale of 0-6. The essay is read by two readers who each mark the essay with a grade from 0-6, in 0.5 point increments. If the two scores are within one point of each other, they are averaged. If there is more than one point difference, the essays are read by a third reader.

The first reader is Intellimetric, a proprietary computer program developed by Vantage Learning, which analyzes creative writing and syntax of more than 50 linguistic and structural features. The second and third readers are humans, who evaluate the quality of the examinee's ideas and his or her ability to organize, develop and express ideas with relevant support. While mastery of the conventions of written English factor into scoring, minor errors are expected, and evaluators are trained to be sensitive to examinees whose first language is not English.

Most business schools do not weigh the AWA as heavily as the verbal and quantitative sections of the test. Some schools ignore the AWA altogether.

Each of the two essays in the Analytical Writing part of the test is graded on a scale of 0 (the minimum) to 6 (the maximum):

• 0 An essay that is totally illegible or obviously not written on the assigned topic.
  
• 1 An essay that is fundamentally deficient.
  
• 2 An essay that is seriously flawed.
  
• 3 An essay that is seriously limited.
  
• 4 An essay that is merely adequate.
  
• 5 An essay that is strong.
  
• 6 An essay that is outstanding.
  

Preparation

Preparing for the GMAT is indispensable even if one has a very good level of English or math to begin with. All GMAT test takers should be familiar with the format of the test and the kinds of questions asked on the test before they take the exam. The official GMATPrep software features two full-length, timed, computer-adaptive GMAT tests and delivery that simulates the actual exam. It includes a set of practice questions for each type of question asked on the exam, answers, and explanations, as well as a comprehensive math review and real-time scoring of the multiple-choice sections
GMATPrep software can be downloaded from www.mba.com.

For a more extensive selection of questions, The Official Guide for GMAT Review contains more than 800 actual GMAT® questions. If you would like additional practice on either the Verbal or Quantitative sections, you can purchase The Official
Guide for GMAT Verbal Review and The Official Guide for GMAT Quantitative Review. Each of the supplements includes approximately 300 questions for you to use in your review. You can also practice with the GMAT Paper Tests available at
www.mba.com. Each set of three “retired” tests includes the multiple-choice sections of the exam, an answer sheet, and instructions for converting your raw score to the equivalent GMAT score.

It is indeed imperative to understand and master the following concepts prior to taking the GMAT:

• the CAT (Computer Adaptive Test structure of the exam in which a computerized test with multiple questions to be answered during a limited amount of time, and 2 analytical essays to be written, with the computer system correcting candidates’ answers in real time and adapting the difficulty level of their questions) – and therefore the possible range of their final score – accordingly.
  
• the specific American mindset with which the required language, mathematical and analytical skills are assessed.

Test-Taking Tips

Although each test taker must decide what approach to take in preparing for and taking the GMAT exam, we offer the following suggestions:

• Become familiar in advance with the test, the kinds of questions asked, and directions for each section by downloading the GMATPrep® software. Once you start the test, an onscreen clock display will count down the remaining time. You can hide this display if you want, but it is a good idea to check the clock periodically to monitor your progress. The clock will automatically alert you by turning yellow and, if hidden, reappearing when five minutes remain for the section you are working on.
  
• Read all test directions carefully. The directions explain what is required to answer each type of question. To review directions during the test, click the Help icon, but be aware that this will
  count against your allotted time for that section of the test.
  
• Read each question carefully and thoroughly. Before answering a question, determine exactly what is being asked, then eliminate the wrong answers and select the best choice.
  
• Never skim a question or the possible answers; skimming may cause you to miss important information or nuances. However, if you do not know the correct answer, or if the question is too time-consuming, try to eliminate choices you know are wrong, select the best of the remaining answer choices, and move on to the next question.
  
• Keep moving through the test and try to finish each section. The best strategy is to pace yourself so that you have time to consider each test question and make your best answer choice.
  Not completing sections and randomly guessing answers to questions at the end of each test section can significantly lower your scores.
• Confirm each answer only when you are certain that you want to move on to the next question. Remember, you cannot omit questions or go back and change answers. The computer selects the next question you see based upon your previous responses.
• Pace yourself so that you have enough time to answer every question. Pay attention to the number of questions and the amount of time remaining during your testing session. On average, you have about 1¾ minutes for each verbal
  question and about 2 minutes for each quantitative
  question. (If you do not finish in the allotted time, you will still receive scores as long as you have worked on every section. However, your scores will reflect the number of questions answered, and your score will decrease significantly with each unanswered question.)
  
• To prepare for the Analytical Writing Assessment, practice with sample writing topics listed on www.mba.com or in The Official Guide for GMAT® Review. These topics may appear in your actual GMAT® exam. 

Score

The GMAT results comprise four different scores: a total score (which is the combined verbal and quantitative scores), a separate Verbal score, a separate Quantitative score, and an Analytical Writing score. The total score is reported on a scale from 200 to 800. The Verbal and Quantitative Scores are reported on a scale of 0 to 60. For the AWA score, the scale is from 0 to 6. Note that your AWA performance is not reflected in your total GMAT score (on 800). You get to know your total, verbal, and quantitative score immediately after taking the test. Official GMAT score reports, which include the AWA scores, are mailed approximately two weeks after you take the test and take another ten days or so to reach your address.

In addition to these scores, the score report also contains percents (%) below. These "% below" indicate the percentage of examinees who scored below you based on the scores of the entire GMAT testing population for the most recent three-year period. These percentages are important in considering how an applicant for admission to a particular management school compares with everyone in the specified period, with all other applicants to the same school, and with students already enrolled at the school.

About two-thirds of test takers score between 400 and 600. The score distribution resembles a bell curve with a standard deviation of approximately 100 points, meaning that the test is designed for 68% of examinees to score between 400 and 600, while the median score was originally designed to be near 500. The 2005/2006 mean score was 533.

The final score is not based solely on the last question the examinee answers (i.e. - the level of difficulty of questions reached through the computer-adaptive presentation of questions). The algorithm used to build a score is more complicated than that. The examinee can make a silly mistake and answer incorrectly and the computer will recognize that item as an anomaly. If the examinee misses the first question his score will not necessarily fall in the bottom half of the range. However the first 5 questions are important as a whole because they go a long way to determining the score potential.

Each test section also includes several experimental questions, which do not count toward the examinee's score, but are included to judge the appropriateness of the item for future administrations.

Verbal and Quantitative Section scores range from 0 to 60. Analytical Writing Assessment scores range from 0 to 6 and represent the average of the ratings from the two GMAT essays. Because the essays are scored so differently from the verbal and quantitative sections, essay scores are not included in the total score.

Required Scores

Most schools do not publish a minimum acceptable score or detailed statistics about the scores achieved by applicants. However, schools do generally publish the average and median score of their latest intake, which can be used as a guide.

At nearly all of the top business schools that are commonly listed in popular magazines and ranking services, the scores will average in the upper 600s or low 700s. The Wharton School of the University of Pennsylvania, commonly regarded as one of the top business schools in the US, reports an average score of 713; Harvard Business School, another top tier U.S. business school, reports a 2006 average of 707. Northwestern University's Kellogg School of Management reports an average GMAT of 700, with approximately 75 percent of enrolled students scoring between 650 and 740. INSEAD, one of Europe's leading business schools with a highly multinational student body, reports a 2007 average of 710.

It may be possible to overcome a low test score with impressive real world accomplishments, good undergraduate performance, outstanding references, or a particularly strong application essay.

The role of GMAT in MBA Admissions: Fact and Fiction

Most people hate to prepare for the GMAT, but few understand its role and importance in MBA admissions. Consequently, debates about its role in admissions have consumed forests. Gazillions of electrons have zapped around the Internet arguing about it. Applicants, admissions professionals, and anyone remotely involved in MBA admissions have considered, analyzed, speculated about, and perhaps bickered over the GMAT.

Let's examine four of the most common truisms/myths about the GMAT

"The GMAT is the most important part of your application."

The GMAT is not the most important, but one of the four most impotrant parts of your application. The other three being the essays, work experience and recommendation letters, in that order. The outcome of your application depends on the overall combination of all these factors. Having said that, if your GMAT is more than fifty points below your target school's average GMAT, it could place you at a disadvantage and force the rest of your application to work overtime. You would have to present something really compelling to overcome that kind of a GMAT deficit at a competitive business school. Indeed, if you come from a common applicant background or a group that tends to do well on the GMAT - the STEM, a below average score could keep you out -- even if the rest of your application is competitive. STEM stands for Science, technology, engineering and mathematics.

The GMAT also becomes critical when you are applying with a below average GPA. In that case, you need a high GMAT to show that you have the intellectual ability and self-discipline for a demanding MBA program.

So when is this truism mostly a myth? When you have an average or above average score and apply to top-twenty programs. Your great GMAT will not assure acceptance at those schools. At that point, your GMAT score becomes virtually irrelevant in the decision-making process. For example, Pete Johnson, Haas Admissions Director, said in a Fall 2003 Haas MBA admissions chat, "We had 187 applicants last year with GMAT scores over 750, and we rejected 75% of them--mostly because they were not accomplished in other ways that were important to us."

"The GMAT has nothing to do with your ability to succeed in business and isn't/shouldn't be that important to business schools."

A high GMAT score has not correlated to professional success, but has correlated closely to success in the first year of business school. And that's one of the reasons MBA admissions folks care about your score. In addition, that three-digit number enables the schools to compare you to other applicants using a relatively objective, across-the-board criterion. Unlike grades or work experience or even more subjective intangibles, the GMAT is something that all top business school applicants must take.

"The GMAT can keep you out of B-school, but it can't get you in."

Usually 100% correct. A low GMAT can certainly keep you out of business school. But can a high score get you in? Doubtful!

"The schools only care about the quant score on the GMAT."

Sorry, this one is absolutely wrong! Business schools are generally more concerned with the quant score, but they really do prefer a balanced strong score. The top schools use the 80th percentile as a guideline for both verbal and quant. They want students who can read and write, as well as add, subtract, divide, multiply and perform a host of more complex mathematical functions. Yes, B-schools will be more liberal towards Indian applicants, but they will not ignore a low verbal score. It can hurt your application.

Conclusion:
So we have two statements that are mostly true and two that are almost all myth. But the key to understanding the GMAT's role is recognizing that its role and significance is fluid. It changes depending on circumstance.

The GMAT is an important element in admissions decisions at top business schools. Its influence in the admissions process depends on the distance of your overall and separate scores from the school's average, whether your score is above or below that average, and how much the school is trying to raise or maintain its average GMAT.

You can't ignore it, wave it away with a magic wand, or even wish it out of significance. You need to prepare and study for the GMAT. Do the best job you can and earn the best GMAT score you're capable of.

Then develop the rest of your profile so that you provide the schools with many reasons to admit you. With your best GMAT score and a well-rounded, multi-dimensional profile revealed in your essays, recommendations, and interviews, your GMAT won't keep you out and the other facets of your background and experience can earn you the coveted fat envelope of acceptance.

Test Registration

The test taker can register in either of the following two ways:

    * Online at mba.com test registration by credit card
    * By calling one of the test centers listed on mba.com

To schedule a test, an appointment must be made at one of the designated test centers. 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 an appointment that is convenient for the student.

To download GMAT Information Bulletin (2008-2009) click here

GMAT: The Computer-Adaptive Format