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Question 90

A streaming service's trial conversion rises from 35% to 42%. Which statement does NOT use the percentage-point versus relative-percent method correctly?

  1. It rose by 7 percentage points.
  2. It rose by 20% relative to the old rate.
  3. It rose by 7% relative to the old rate.Correct answer
  4. The new rate is 120% of the old rate.

Explanation

The difference is 42 - 35 = 7 percentage points, and 7 / 35 × 100 = 20% relative growth, making the new rate 120% of the old rate. Describing the relative growth as 7% mistakes the point difference for a percent of the old rate.

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Question 90: A streaming service's trial conversion rises from 35% to… · Percentages · Questena