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Register now and save up to $200 Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code ## A study of ticket sales at a summer theater festival found This topic has 3 expert replies and 1 member reply RBBmba@2014 Legendary Member Joined 30 May 2012 Posted: 889 messages Followed by: 4 members Thanked: 8 times #### A study of ticket sales at a summer theater festival found Thu Jun 23, 2016 5:34 am Elapsed Time: 00:00 • Lap #[LAPCOUNT] ([LAPTIME]) A study of ticket sales at a summer theater festival found that people who bought tickets to individual plays had a no-show rate of less than 1 percent, while those who paid in advance for all ten plays being performed that summer had a no-show rate of nearly 30 percent. This may be at least in part because the greater the awareness customers retain about the cost of an item, the more likely they are to use it. Which of the following would, if true, best serve as an alternative explanation of the results of the study? (A) The price per ticket was slightly cheaper for those who bought all ten tickets in advance. (B) Many people who attended the theater festival believed strongly that they should support it financially. (C) Those who attended all ten plays became eligible for a partial refund. (D) Usually, people who bought tickets to individual plays did so immediately prior to each performance that they attended. (E) People who arrived just before the performance began could not be assured of obtaining seats in a preferred location. OA: D Source: OG 2016,CR Qs.39 @Verbal Experts - although I got this one correct, but would like to know why EXACTLY A and C are wrong ? Please share your analysis on this CR. Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums! ### GMAT/MBA Expert DavidG@VeritasPrep Legendary Member Joined 14 Jan 2015 Posted: 2447 messages Followed by: 115 members Thanked: 1153 times GMAT Score: 770 Sat Jun 25, 2016 7:20 am RBBmba@2014 wrote: A study of ticket sales at a summer theater festival found that people who bought tickets to individual plays had a no-show rate of less than 1 percent, while those who paid in advance for all ten plays being performed that summer had a no-show rate of nearly 30 percent. This may be at least in part because the greater the awareness customers retain about the cost of an item, the more likely they are to use it. Which of the following would, if true, best serve as an alternative explanation of the results of the study? (A) The price per ticket was slightly cheaper for those who bought all ten tickets in advance. (B) Many people who attended the theater festival believed strongly that they should support it financially. (C) Those who attended all ten plays became eligible for a partial refund. (D) Usually, people who bought tickets to individual plays did so immediately prior to each performance that they attended. (E) People who arrived just before the performance began could not be assured of obtaining seats in a preferred location. OA: D Source: OG 2016,CR Qs.39 @Verbal Experts - although I got this one correct, but would like to know why EXACTLY A and C are wrong ? Please share your analysis on this CR. Imagine a simple real-world scenario. I bought the 10 play package. You bought a ticket for one play. You show up. I don't. We're trying to understand why. The initial argument is that if you remember more about the cost of an individual ticket, you're more likely to go. (It's a strange argument. How hard would it be to determine the price per ticket of a 10-ticket package?) We're looking for an alternative explanation for why you'd go and I wouldn't. 'A' doesn't shed any light on why you'd attend and I wouldn't. Say you bought your ticket for$30, and I bought a 10-ticket package for $280. The fact that I'm paying$28/show doesn't really explain why I'd be less likely to go than you would. Presumably, I was interested in seeing the show when I bought the tickets. I paid nearly as much as you did. So why am I not there?

'C' is even worse. If I get a refund for attending all the plays, I should be more motivated to attend, not less.

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Save $100 off any live Veritas Prep GMAT Course Thanked by: RBBmba@2014 Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now! RBBmba@2014 Legendary Member Joined 30 May 2012 Posted: 889 messages Followed by: 4 members Thanked: 8 times Tue Jun 28, 2016 11:45 am Hi DavidG@VeritasPrep, Thanks for the reply. Got it; just would like to know whether A & C can be eliminated for the following reason as well (on top of what you already mentioned above) ? Reason to eliminate A: In any way, people will end up paying more than they pay for a single ticket. So, if they're really cost-aware then they seem to be more likely to go to those shows for which they made advance payment. Reason to eliminate C: This "partial refund" will come into play after attending the theater. So, before attending, people just may not know about the refund. So, in that way C simply doesn't stand as an alternative explanation. Thoughts ? ### GMAT/MBA Expert DavidG@VeritasPrep Legendary Member Joined 14 Jan 2015 Posted: 2447 messages Followed by: 115 members Thanked: 1153 times GMAT Score: 770 Wed Jun 29, 2016 7:36 am Quote: Reason to eliminate A: In any way, people will end up paying more than they pay for a single ticket. So, if they're really cost-aware then they seem to be more likely to go to those shows for which they made advance payment. Sounds valid to me. (And I'd add that the modifier "slightly" suggests that the price difference, whatever it is, is basically irrelevant.) _________________ Veritas Prep | GMAT Instructor Veritas Prep Reviews Save$100 off any live Veritas Prep GMAT Course

Last edited by DavidG@VeritasPrep on Mon Jul 04, 2016 10:41 am; edited 1 time in total

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DavidG@VeritasPrep Legendary Member
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Quote:
Reason to eliminate C: This "partial refund" will come into play after attending the theater. So, before attending, people just may not know about the refund. So, in that way C simply doesn't stand as an alternative explanation.
Well, I don't think we can make the assumption that this is a surprise refund that ticket-buyers will only find out about after they attend. Think of it this way. If they know about the refund, they're be more motivated to attend, not less. If they don't know about the refund, it's irrelevant, as far as incentives go. Either way, it can't possibly be the correct answer.

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