Morganville

This topic has expert replies
User avatar
GMAT Instructor
Posts: 613
Joined: Thu Mar 22, 2007 6:17 am
Location: madrid
Thanked: 171 times
Followed by:64 members
GMAT Score:790

by kevincanspain » Sun May 30, 2010 8:35 am
If you choose B, you are missing the point of the argument!

Evidence: Records from other towns show that wherever a SaveAll opens, more than 25% percent of the stores in that town go bankrupt within 5 years.

Conclusion: Morganville should prevent a SaveAll from opening in order to keep its central district healthy

Assumption: Any shopping district in which more than 25% of its stores close in a five-year period is not healthy.

The argument is testing your ability to consider statistics critically and logically. Never interpret a statistic without knowing its context and how it compares to others.

Larry: Doctor Smith is one of the best surgeons in the city: this is shown by the fact that only 2% of the surgical procedures he has performed in the last year were failures.

Karen: I don't know how you can draw that conclusion unless you tell me how 2% compares with ...
Kevin Armstrong
GMAT Instructor
Gmatclasses
Madrid

User avatar
Community Manager
Posts: 156
Joined: Mon Oct 22, 2007 6:06 am
Location: Mumbai, India
Thanked: 16 times
Followed by:3 members
GMAT Score:700

by viidyasagar » Wed Jun 02, 2010 7:50 pm
The answer to B (whether yes or no) does not have any impact on the Conclusion......

read the 1st line - if Morganville wants to keep its central shopping district healthy....now look at B and eliminate it....

There are 2 kinds of districts.....with saveall and without saveall....C correctly questions whether 25% is true only in the case of districts with Saveall or is it the benchmark bankruptcy rate....No ambiguity..C all the way.....thanks Kevin

Master | Next Rank: 500 Posts
Posts: 364
Joined: Tue Apr 20, 2010 5:13 am
Thanked: 31 times
Followed by:3 members

by FightWithGMAT » Thu Jun 03, 2010 2:14 am
reachac wrote:Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist�s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
Well, besides all the good and logical explanation given here, one more significant information can be critically analyzed.

B talks about the stores in Morganville whereas we need to see stores in shopping center of Morganville. There might me many other stores outside of district shopping center, but the question is concerned with only stores of shopping center.

This is a big difference though difficult to pin point.

C is very much in the scope of what is being asked and what is to be looked for.

Senior | Next Rank: 100 Posts
Posts: 65
Joined: Sun Aug 22, 2010 2:55 pm

by siddhans » Sun Jun 12, 2011 1:57 pm
C is generic => IN TOWNS and NOT MORGANVILLE which can be out of scope => In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

SO WHY C STILL???