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## Discount stores

tagged by: ceilidh.erickson

This topic has 4 expert replies and 6 member replies
src_saurav Master | Next Rank: 500 Posts
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#### Discount stores

Wed May 13, 2015 12:01 am
107. Although the discount stores in Gorevilleâ€™s central shopping district are expected to close within five years as a result of competition from a SpendLess discount department store that just opened, those locations will not stay vacant for long. In the five years since the opening of Colsonâ€™s, a nondiscount department store, a new store has opened at the location of every store in the shopping district that closed because it could not compete with Colsonâ€™s.

Which of the following, if true, most seriously weakens the argument?
(A) Many customers of Colsonâ€™s are expected to do less shopping there than they did before the SpendLess
store opened.
(B) Increasingly, the stores that have opened in the central shopping district since Colsonâ€™s opened have been
discount stores.
(C) At present, the central shopping district has as many stores operating in it as it ever had.
(D) Over the course of the next five years, it is expected that Gorevilleâ€™s population will grow at a faster rate
than it has for the past several decades.
(E) Many stores in the central shopping district sell types of merchandise that are not available at either
SpendLess or Colsonâ€™s.

My answer is A .I believe that less spending will be a bane in the opening of the new stores.

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ceilidh.erickson GMAT Instructor
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Tue Apr 19, 2016 6:20 am
RBBmba@2014 wrote:
ceilidh.erickson wrote:
Yes, that's right (although I'll be a stickler and say that we don't know that it will be "very unlikely," we're just given reason to doubt the pattern given by the author).
@ceilidh - I've removed the word VERY from my above post. I think, we can AT LEAST call it just "UNLIKELY". Isn't it ?

And a quick question:
Here in the STIMULUS, given that "stores are closed because they could not compete with Colsonâ€™s". However, it's NOT EXPLICITLY mentioned that EXACTLY what type of stores are closed because of COLSON'S.

Still we're considering that NONDISCOUNT stores are closed failing to compete with COLSON'S. Is this because by common sense, it can be said that realistically ONLY SAME type of stores are capable of competing with each other in GENERAL -- i.e. DISCOUNT store competing with another DISCOUNT store or NONDISCOUNT store competing with another NONDISCOUNT store. Am I correct ?

P.S: For different types of stores i.e. DISCOUNT store competing with NONDISCOUNT store is NOT the way BUSINESS is done in GENERAL because approach to serving customers will be different in different TYPES (re DISCOUNT/NONDISCOUNT) of stores. Right ?
Yes, if you remove the word "very," it's reasonable to infer "unlikely." A lot of weaken/strengthen questions will rely on real-world common sense, rather than strict formal logic. (This is one major difference between the GMAT and the LSAT, presumably because business schools want students who understand the real world, but law schools want students who can argue the fine points of logic).

_________________

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EdM in Mind, Brain, and Education

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RBBmba@2014 Legendary Member
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Tue Apr 19, 2016 11:04 am
RBBmba@2014 wrote:
Here in the STIMULUS, given that "stores are closed because they could not compete with Colsonâ€™s". However, it's NOT EXPLICITLY mentioned that EXACTLY what type of stores are closed because of COLSON'S.

Still we're considering that NONDISCOUNT stores are closed failing to compete with COLSON'S. Is this because by common sense, it can be said that realistically ONLY SAME type of stores are capable of competing with each other in GENERAL -- i.e. DISCOUNT store competing with another DISCOUNT store or NONDISCOUNT store competing with another NONDISCOUNT store. Am I correct ?

P.S: For different types of stores i.e. DISCOUNT store competing with NONDISCOUNT store is NOT the way BUSINESS is done in GENERAL because approach to serving customers will be different in different TYPES (re DISCOUNT/NONDISCOUNT) of stores. Right ?
@ceilidh - could you please share your feedback on the above TWO questions - whether I'm correct or not ?

### GMAT/MBA Expert

ceilidh.erickson GMAT Instructor
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Tue Apr 19, 2016 6:20 am
RBBmba@2014 wrote:
ceilidh.erickson wrote:
Yes, that's right (although I'll be a stickler and say that we don't know that it will be "very unlikely," we're just given reason to doubt the pattern given by the author).
@ceilidh - I've removed the word VERY from my above post. I think, we can AT LEAST call it just "UNLIKELY". Isn't it ?

And a quick question:
Here in the STIMULUS, given that "stores are closed because they could not compete with Colsonâ€™s". However, it's NOT EXPLICITLY mentioned that EXACTLY what type of stores are closed because of COLSON'S.

Still we're considering that NONDISCOUNT stores are closed failing to compete with COLSON'S. Is this because by common sense, it can be said that realistically ONLY SAME type of stores are capable of competing with each other in GENERAL -- i.e. DISCOUNT store competing with another DISCOUNT store or NONDISCOUNT store competing with another NONDISCOUNT store. Am I correct ?

P.S: For different types of stores i.e. DISCOUNT store competing with NONDISCOUNT store is NOT the way BUSINESS is done in GENERAL because approach to serving customers will be different in different TYPES (re DISCOUNT/NONDISCOUNT) of stores. Right ?
Yes, if you remove the word "very," it's reasonable to infer "unlikely." A lot of weaken/strengthen questions will rely on real-world common sense, rather than strict formal logic. (This is one major difference between the GMAT and the LSAT, presumably because business schools want students who understand the real world, but law schools want students who can argue the fine points of logic).

_________________

Ceilidh Erickson
Manhattan Prep GMAT & GRE instructor
EdM in Mind, Brain, and Education

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RBBmba@2014 Legendary Member
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Tue Apr 19, 2016 11:04 am
RBBmba@2014 wrote:
Here in the STIMULUS, given that "stores are closed because they could not compete with Colsonâ€™s". However, it's NOT EXPLICITLY mentioned that EXACTLY what type of stores are closed because of COLSON'S.

Still we're considering that NONDISCOUNT stores are closed failing to compete with COLSON'S. Is this because by common sense, it can be said that realistically ONLY SAME type of stores are capable of competing with each other in GENERAL -- i.e. DISCOUNT store competing with another DISCOUNT store or NONDISCOUNT store competing with another NONDISCOUNT store. Am I correct ?

P.S: For different types of stores i.e. DISCOUNT store competing with NONDISCOUNT store is NOT the way BUSINESS is done in GENERAL because approach to serving customers will be different in different TYPES (re DISCOUNT/NONDISCOUNT) of stores. Right ?
@ceilidh - could you please share your feedback on the above TWO questions - whether I'm correct or not ?

### GMAT/MBA Expert

ceilidh.erickson GMAT Instructor
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Mon May 09, 2016 10:42 am
RBBmba@2014 wrote:
Here in the STIMULUS, given that "stores are closed because they could not compete with Colsonâ€™s". However, it's NOT EXPLICITLY mentioned that EXACTLY what type of stores are closed because of COLSON'S.

Still we're considering that NONDISCOUNT stores are closed failing to compete with COLSON'S. Is this because by common sense, it can be said that realistically ONLY SAME type of stores are capable of competing with each other in GENERAL -- i.e. DISCOUNT store competing with another DISCOUNT store or NONDISCOUNT store competing with another NONDISCOUNT store. Am I correct ?
Yes, that's the general understanding. This is typical of the kind of real-life common sense that you'll be asked to apply on CR, especially on weaken & strengthen questions.

Quote:
P.S: For different types of stores i.e. DISCOUNT store competing with NONDISCOUNT store is NOT the way BUSINESS is done in GENERAL because approach to serving customers will be different in different TYPES (re DISCOUNT/NONDISCOUNT) of stores. Right ?
Yes, that's how I understand it, too. Because we don't know whether the stores that opened after Colson's were discount or non-discount, we don't know whether smaller stores of a similar type are able to compete with a larger store (though, based on real world knowledge, we might suspect not).

While you're right (in real life, in general), there's a danger in bringing too much real world knowledge to the GMAT, even though you're asked to bring a little bit. The more important question to ask yourself here, rather than "how would this situation play out in real life" is "what did the author neglect to mention that might affect the logic of the argument?"

The author assumes that the situation now will be directly comparable to the situation 5 years ago, but we haven't been given all of the relevant details to compare.

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Tue May 03, 2016 6:29 am
@ceilidh - any thoughts on my immediate above post ?

Look forward to hear from you. Much thanks in advance!

RBBmba@2014 Legendary Member
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Mon Apr 11, 2016 3:58 am
ceilidh.erickson wrote:
Yes, that's right (although I'll be a stickler and say that we don't know that it will be "very unlikely," we're just given reason to doubt the pattern given by the author).
@ceilidh - I've removed the word VERY from my above post. I think, we can AT LEAST call it just "UNLIKELY". Isn't it ?

And a quick question:
Here in the STIMULUS, given that "stores are closed because they could not compete with Colsonâ€™s". However, it's NOT EXPLICITLY mentioned that EXACTLY what type of stores are closed because of COLSON'S.

Still we're considering that NONDISCOUNT stores are closed failing to compete with COLSON'S. Is this because by common sense, it can be said that realistically ONLY SAME type of stores are capable of competing with each other in GENERAL -- i.e. DISCOUNT store competing with another DISCOUNT store or NONDISCOUNT store competing with another NONDISCOUNT store. Am I correct ?

P.S: For different types of stores i.e. DISCOUNT store competing with NONDISCOUNT store is NOT the way BUSINESS is done in GENERAL because approach to serving customers will be different in different TYPES (re DISCOUNT/NONDISCOUNT) of stores. Right ?

### GMAT/MBA Expert

ceilidh.erickson GMAT Instructor
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Fri Apr 08, 2016 9:16 am
Yes, that's right (although I'll be a stickler and say that we don't know that it will be "very unlikely," we're just given reason to doubt the pattern given by the author).

The flaw in the argument is that the author assumes that the pattern will repeat, regardless of store type: big store moves in -> some stores close as a result -> other stores move in to take their place

However, Colson's was a nondiscount store, and Spendless is a discount store. We would have to know what types of stores are closing and opening. If, when Colson's moved in, nondiscount stores closed, but discount stores opened in their place, then when Spendless moves in, the discount stores will close, but there may not be any other type of store that's able to replace them. Basically, we need to know whether stores are being replaced by the same type of stores, or by cheaper ones.

B answers that question - if the stores that came in were discount stores, there might not be anything else that could move in to replace those.

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RBBmba@2014 Legendary Member
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Fri Apr 08, 2016 3:59 am
Hi Verbal Experts(Mitch/Dave/others) -- a quick clarification required on this CR.

The pattern observed here is Colson's NONDISCOUNT department store opens -- existing [NONDISCOUNT] stores that couldn't compete with Colson close down -- new (DISCOUNT) stores open in place of the closed [NONDISCOUNT] stores.

On the basis of this above PATTERN, the ARGUMENT tries to find a resemblance in the following case: SpendLess DISCOUNT department store opens -- existing DISCOUNT stores failing to compete with SpendLess will be closed down -- new stores will be opened in place of these closed DISCOUNT stores.

Now,as the SpendLess is ITSELF a DISCOUNT department store and as the stores that will be closed because of competition from SpendLess,are ALSO DISCOUNT stores, hence it's UNLIKELY that the new DISCOUNT stores will be opened in place of closed DISCOUNT stores,following the above PATTERN in RED.

Did I get this right ?

Last edited by RBBmba@2014 on Sun Apr 10, 2016 11:07 pm; edited 2 times in total

andymal Junior | Next Rank: 30 Posts
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Wed May 13, 2015 7:26 am
Hi Mitch,

The notion of sample relevance (x is relevant to y) seems to come up a lot on the GMAT, and I know that presumed causation does too. Are there any other things that you think are smart to look out for?

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