• Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep

OG CR:With seventeen casinos, Moneyland

This topic has 1 member reply
NandishSS Master | Next Rank: 500 Posts Default Avatar
Joined
05 Jun 2015
Posted:
300 messages
Followed by:
1 members
Thanked:
3 times

OG CR:With seventeen casinos, Moneyland

Post Sat Sep 17, 2016 5:14 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    With seventeen casinos, Moneyland operates the most casinos in a certain state. Although intent on expanding, it was outmaneuvered by Apex Casinos in negotiations to acquire the Eldorado chain. To complete its acquisition of Eldorado, Apex must sell five casinos to comply with a state law forbidding any owner to operate more than one casino per county. Since Apex will still be left operation twenty casinos in the state, it will then have the most casinos in the state.

    Which of the following, if true, most seriously undermines the prediction?

    A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.
    B) The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably.
    C) Some of the state's counties do not permit casinos.
    D) Moneyland already operates casinos in the majority of the state's counties.
    E) Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain.

    OA:A

    Source:OG 2017

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!

    Top Member

    Post Mon Nov 14, 2016 5:21 am
    The conclusion is about numbers. So let's look at the numbers.

    Moneyland has 17 casinos.

    Apex has to sell 5 casinos.

    Apex will have 20 casinos.

    Law restricts any owner to operating 1 casino per county.

    Prediction: Apex will have most casinos in the state.

    Question: Which of the following, if true, most seriously undermines the prediction?

    (A) If Apex buys Eldorado, then what this answer choice is saying means that Apex and Moneyland will be the only two licensed organizations. So here are two possible scenarios.

    Scenario 1

    Apex: Sells 5 casinos. Ends up with 20.

    Moneyland: Only other organization. Therefore only buyer of 5 casinos. Already has 17. Ends up with 17 + 5 = 22.

    Moneyland has more. This is contrary to the conclusion.

    Scenario 2

    Even though the prompt seems to indicate that the deal with go through, just to be safe let's consider the fact that it may be the case that Moneyland cannot buy all 5 casinos without violating the one per county per organization law. In this case, doing the deal may not be feasible.

    If the deal does not get done, Moneyland will remain the operator with the most casinos. This is contrary to the conclusion.

    (B) Trap answer. You might make up some story that this answer means that some of the casinos that Apex buys will not continue to operate, but really this does not support that story.

    (C) This makes no difference. One can reasonably assume that in GMAT land the casinos being bought are in counties that do permit them. More importantly, we know from the prompt that, regardless of what some counties permit or don't permit, in order to get the deal done, Apex has to sell five and end up with twenty.

    (D) This does not undermine the conclusion that Apex will have the most.

    (E) This explains how the deal will work, not why Apex will not have the most.

    So there are three clearly wrong answers, C, D and E, one answer that one could choose if one makes up an unsupported story, B, and one correct answer, A.

    _________________
    Marty Murray
    GMAT Coach
    m.w.murray@hotmail.com
    http://infinitemindprep.com/
    In Person in the New York Area and Online Worldwide

    Thanked by: Anaira Mitch

    Best Conversation Starters

    1 lheiannie07 116 topics
    2 ardz24 64 topics
    3 swerve 63 topics
    4 LUANDATO 62 topics
    5 M7MBA 57 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    170 posts
    2 image description EconomistGMATTutor

    The Economist GMAT Tutor

    129 posts
    3 image description Rich.C@EMPOWERgma...

    EMPOWERgmat

    122 posts
    4 image description GMATGuruNY

    The Princeton Review Teacher

    121 posts
    5 image description Scott@TargetTestPrep

    Target Test Prep

    118 posts
    See More Top Beat The GMAT Experts