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## Morganville

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reachac Legendary Member
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#### Morganville

Mon Jul 14, 2008 10:51 pm
Elapsed Time: 00:00
• Lap #[LAPCOUNT] ([LAPTIME])
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?

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sumant1808 Junior | Next Rank: 30 Posts
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Mon Jul 14, 2008 11:27 pm
IMO B

A)Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
Point is not related to successful campaign.

B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
Stores will have an impact only if residents of morganville do almost all of their shopping at these stores.

C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
we should focus on towns with saveall stores

D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
employment is out of scope

E. Do newly opened SaveAll stores ever lose money during their first five years of operation
Out of scope

BlueRain Senior | Next Rank: 100 Posts
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Mon Jul 14, 2008 11:52 pm
IMO, C.

The "support" behind the activist argument is that SaveAll store causes bankruptcies of the existing stores, but what if the >1/4 bankruptcies rate is normal? What is the INCREASE/CHANGE in bankruptcies in a given town?

C would provide a baseline number for comparison.

raunekk Legendary Member
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Tue Jul 15, 2008 2:11 am
IMO: C..

"Quater" of how much??

NSNguyen Master | Next Rank: 500 Posts
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Tue Jul 15, 2008 6:47 am
premises:
Whenever, Saveall is opened in any districts, other stores in the central district get bankruptcy.
=> to keep central stores healthy( not bankruptcy), Morganville should prevent SaveAll from opening.
To evaluate the reasoning, we must consider how effect of SaveAll cause for central stores after opening.

A, irre
B, reveal the fact that most of irrelevance to the issue
C, how if SaveAll does not open any store in the outskirt and the percentage of bankruptcy still a quarter.
D, E, OOS,

This reasoning contracts a fault assumption that a quarter bankcruptcy caused by SaveAll opening.
OA: C

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reachac Legendary Member
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Tue Jul 15, 2008 8:16 am
OA is C

@Ranuekk, liked ur reasoning the best, short and succint

I went with B

kiranlegend Master | Next Rank: 500 Posts
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Tue Jul 15, 2008 10:01 pm
IMO C as well..

but couldn't understand raunek's explanation? my eagerness to find it out is due to raeahac's complimet:P

could anyone of you please explain what did you get from 'quater of how much?' ?

jerrykid Newbie | Next Rank: 10 Posts
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Thu Jul 02, 2009 5:37 am
I am for C.

B:Even if a small proportion of the population do shopping at the central district, the opening of SaveAll could still negatively affect the shopping at the central district.

C: If the normal bankruptcy rate is 25% for central shopping district stores, then the opening of SaveAll is not going to cause additional closure of central shopping district stores. Therefore, C should be most useful in evaluating the argument.

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walker Junior | Next Rank: 30 Posts
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Thu Jul 02, 2009 7:09 pm
between B and C

B - is closer but.

Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?

The answer to this question could be
1) YES -> doesn't evaluate the reason (within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district).

2) NO-> doesn't evaluate the reason (within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district).

C - 'Quarter' - what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
Makes sense

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BlindVision Master | Next Rank: 500 Posts
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Thu Jul 02, 2009 10:46 pm
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?
I would have gone with "B"...

B) If a large percentage of residents currently do almost all of their shopping at stores in Morganville, then opening a SaveAll may hurt the healthy shopping district. In contrast, if a large percentage of residents do not do almost all of their shoppping at stores in Morganville, then opening a SaveAll may not do much harm to the shopping district.

C) IMO there's a flaw, because what proportion of the stores in those districts suffer bankruptcy during a typical five-year period can be misleading; anything can be the cause of bankruptcies during the typical five-year period - i.e. poor management, down economy, job layoffs, etc. However, if the answer choice included the word "SaveAll" stores as the cause, like it does in the other answer choices, then I can see "C" being the answer.

What is the source of the question?

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ssgmatter Legendary Member
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Tue May 18, 2010 8:12 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 activistï¿½s 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?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!

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kevincanspain GMAT Instructor
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Tue May 18, 2010 3:06 pm
ssgmatter wrote:
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 activistï¿½s 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?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!
Why do you think that B is relevant?

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ssgmatter Legendary Member
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Tue May 18, 2010 6:32 pm
kevincanspain wrote:
ssgmatter wrote:
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 activistï¿½s 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?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!
Why do you think that B is relevant?
My take on B:

If B is YES, then most of the shopping will occur in the Save all discount store, so that will affect the central shopping district.

If B is NO, then central shopping district will survive.

Does it make sense?

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bupbebeo Master | Next Rank: 500 Posts
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Tue May 18, 2010 7:12 pm
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 activistï¿½s 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?
This is evaluate question. According to Power Score methods, we should use Variance Test to choose the right answer

We can easily eliminate A, D, E. and I see many people confuse between B, and C. Now, let's attack B and C to see which one is better.

Let's attack B first
If B is Yes. customers do most of their shopping at Morganville. when SaveAll open, Morganvill may suffer bankruptcy.
If B is No. Customers do NOT do most of their shopping at Morganvill. When Save All open, Morganville also may suffer bankruptcy.

So even B is Yes or No, Morganvill may have suffer the same situation. This violates variance test which states that Morganville should have different situation when B has different answer. Yes or No.

Therefore, B is not correct

If in healthy central shopping mall, in five-year period, 25 or more portion of current companies go bankruptcy, the appearance of Saveall is chance and this appearance is not a cause of bankruptcy of other businesses. therefore, the reasoning of community activist is wrong.

Hope that helps

ssgmatter Legendary Member
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Sun May 30, 2010 5:22 am
kevincanspain wrote:
ssgmatter wrote:
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 activistï¿½s 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?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!
Why do you think that B is relevant?
Kevin,

Any thoughts why it cannot be B?

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Amit

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