The Key Differences Between the GRE and the GMAT

Image from

Matthew Creegan July 30, 2014

As with most standardized tests, neither of the GRE nor the GMAT measures how much you know. They measure how well you can take an exam. Explore the key differences between these two standardized tests.

In this course, participants learn core principles, concepts, and methods of continuous improvement and explore the history of continuous improvement efforts. In a series of lectures, Master Black Belt in Six Sigma Shane Wentz, Ph.D., enables learners to enhance, optimize, and stabilize business processes and to augment quality control through varied methodologies. Participants gain the skills and knowledge to reimagine internal processes, engage in advanced problem-solving, and empower employees. The course covers high-level foundational principles of Lean, Six Sigma, and DMAIC processes before diving deep into Lean Six Sigma methods. Learners will analyze the tools of process mapping, Kaizen (a continuous improvement method/tool deemed a prerequisite for Lean transformation success), Lean (a continuous improvement philosophy that emphasizes streamlined workflows and reducing waste), and the process improvement methodology driving DMAIC: Define, Measure, Analyze, Improve, and Control.

Entrepreneurs fostering new ventures outside of well-developed entrepreneurial ecosystems like Silicon Valley face significant challenges. These markets are unlike Silicon Valley, and they will likely remain so. That doesn't mean they can't nurture and sustain new businesses. In transitioning markets that lack abundant private sector financing, creative approaches from government officials, donors, and business leaders can fill the void to support entrepreneurial activity. Northeast Ohio (where Cleveland and Case Western Reserve University are located) has become a laboratory for such innovative solutions. During our time together in this course, we will explore some of these creative approaches to promoting regional entrepreneurship. Northeast Ohio has seen a massive infusion of government and donor resources for over ten years. In that time, Northeast Ohio has promoted regional development (including job creation and follow-on funding) through alternative methods of financing startups. It has not been easy. The region has made progress, but it remains to be seen whether it has struck upon an enduring formula. A dynamic entrepreneurial ecosystem takes many years, even decades, to develop. Government policymakers and donors typically seek quicker returns on their support programs, which makes long-term support for entrepreneurship challenging. This course includes case studies and first-person testimonials from entrepreneurs who have launched products and services ranging from medical devices to LED lights to whiskey. You will learn how these entrepreneurs discovered and procured resources from various programs and intermediary organizations. You will hear from business people still in the process of developing their companies as well as those whose ventures have flourished. Our focus will extend beyond Cleveland to selected markets around the world, including Greece, Vietnam, Tunisia, Argentina, Rwanda and China. You will learn about international incentives and other supports available to developing startups and small businesses across the globe. This course examines how different communities around the world approach implementing strategies and methods to support businesses. I will ask you to reflect on how to apply the principles we learn to growing entrepreneurship where you live. The social interactive features of the online platform will enable students from around the world to share ideas and learn from one another. Most MOOCs rebroadcast professors’ lectures; this course is different. Don’t expect to see me standing in front of the camera, talking and lecturing every module. Instead, the lectures will be relatively short in length. They have more of the feel of an engaging documentary than a static classroom setting. ## __What type of person takes the *Beyond Silicon Valley* course?__ - Active and aspiring businesspeople in communities looking to initiate new startup ecosystems or bolster existing ones - Current and prospective entrepreneurs who want to learn about funding sources, risk management, and the lifecycle of startups - Professionals who work in government agencies, nongovernmental organizations, philanthropic institutions, and various private funds that fund startups - Anyone curious about how to create and grow startup ecosystems outside the major tech hubs - The principles Beyond Silicon Valley teaches have been drawn from and applied to startups worldwide, from small villages to megalopolises. You'll study success stories spanning the globe from Vietnam to Kosovo to Botswana. ## __What will you learn in *Beyond Silicon Valley*?__ - How and where startups can find funding to get their businesses off the ground - What role government can play in encouraging startups and a healthy startup ecosystem - How anchor institutions such as universities and healthcare systems participate in startup ecosystems - How nongovernmental organizations support startups - How to raise funds from venture capitalists, angel investors, and accelerators - How to navigate challenging periods in the startup lifecycle - The importance of mentoring in successful startups

Article continues here

As with most standardized tests, neither of the GRE nor the GMAT measures how much you know. They measure how well you can take an exam.

GRE

The general Graduate Record Examination (GRE) is the entrance exam for most graduate schools. Each year, hundreds of thousands of people who want to pursue a master’s degree or go to business school take the GRE.

The GRE is offered in a computer-adaptive format only; you must go to an ETS test center and take this test online. A computer-adaptive test is one that selects each question based on your performance on the previous question. If you answer a question correctly, the computer will likely give you a slightly more difficult question next. If you answer incorrectly, you get an easier question. The test continues until the test algorithm determines your score.

Test-takers are allowed three hours and 45 minutes to finish the exam, excluding short breaks in between sections. This is fifteen minutes longer than the three and a half hours allotted for the Graduate Management Admission Test (GMAT).

The GRE math section tests students on basic arithmetic including algebra, geometry, data interpretation, ratios, and word problems. Some people opt for the GRE because it’s the only exam out of the two that allows for test takers to use a calculator.

The GRE’s verbal section focuses mostly on vocabulary, so brush up on those thesaurus skills. The exam poses questions involving text completion, sentence equivalence, and reading comprehension in this section.

GRE scores for the math and verbal sections are reported separately. Each section is graded on a 130 to 170 scale, in 1-point increments. A GRE verbal score of 170 typically places you in the 90th percentile of all test takers; a 157 should place you in the 75th percentile. To place in the 90th percentile on the GRE quantitative section requires a much higher score of 167; a 161 should place you in the 75th percentile. As you have likely deduced, the GRE quantitative section is easier than the GRE verbal section. The math skills tested on the GRE are high-school level.

The analytical section consists of two open essays. The first asks for you to pick one of two given stances and make an argument defending your choice. The second essay asks for a written evaluation of a given argument. The analytical portion of the GRE is graded from 0-6 on a half-point scale. A score of 5.0 places you roughly in the 92nd percentile; a score of 4.0 places you in the 55th percentile.

You can access GRE prep material and even free GRE practice tests on the ETS website. ETS also publishes an official GRE guide, which is not free.

GMAT

The Graduate Management Admission Test (GMAT) is a test strictly for business schools, as opposed to the GRE which is a general graduate school admissions test. Not all MBA programs require the GMAT, but many do, including most of the top b-schools. The exam is administered by the Graduate Management Admissions Council (GMAC). Like the GRE, the GMAT is only offered in a computer-adaptive format.

You will receive a single GMAT score within a score range of 200 and 800. That test score combines your performances on the GMAT verbal section and GMAT quantitative section. A 650 or higher is considered a good score; it puts you in roughly the 75th percentile of all GMAT test takers. You typically need a total score of 700 or higher to rank in the 90th percentile on this exam.

The GMAT has four sections. Test takers are allotted three and a half hours to complete the exam.

Your GMAT score will also report four subscores for your Analytical Writing Assessment (AWA) (scored on a 0 to 6 scale), integrated reasoning skills (1 to 8), verbal skills (0 to 60), and quantitative skills (0 to 60). Many MBA admissions committees consider your quantitative score more important than the other three.

The analytical section of the GMAT calls for students to analyze an argument they are given and submit a written response.

The Integrated Reasoning section of the GMAT includes multi-source reasoning, graphics interpretation, two-part analysis and table analysis.

The quantitative portion of the GMAT tests students on data sufficiency and problem solving. This part of the test is known for being harder than its GRE counterpart, and you’re not allowed to use a calculator.

The verbal section of the GMAT focuses on reading comprehension, critical reasoning, and sentence correction. As opposed to the GRE, the GMAT focuses on grammar instead of vocabulary.

Applying to business school doesn’t necessarily mean that you’ll have to take the GMAT–the GRE is accepted most places unless indicated otherwise. Less than half the number of people that take the GRE take the GMAT.

It would be wise to verify with your prospective schools which exam is preferred. According to the Princeton Review, close to 700 business schools accept the GRE and that number is growing.

The GMAT has a different format from the GRE, and it’s generally more expensive. Both exams’ scores are valid for five years. Taking the GRE would be a suitable option for those who are considering a wide variety of graduate programs, and an MBA is one of the options that they have in mind.

Whichever test you decide to take, it’s always a good idea to seek out some help preparing for the test. Luckily both the GRE and GMAT practice tests are free. When you decide which test fits you best, consider test prep from testing centers such as Kaplan or Princeton Review

Questions or feedback? Email editor@noodle.com