poonam1279 wrote:Six weekends each year, Alpha Showgrounds are used exclusively for public horse shows. During all other weekends, the grounds are used excleusively as a public market. For its revenues, Alpha depends entierly on admission fees, and revenue from a typcial weekend horse show is far greater than from a typical weekend market. However, Alpha’s annual revenues from the market far exceed its annual revenues from horse shows.

Which of the following strategies, if implemented, would likely provide the greatest boost to Alpha’s revenues?

(A) Increase the fee for admission to the public market, but leave the admission fees for horse shows unchanged.
(B) Increase the fees for admission to the horse shows, but leave the admission fee for the public market unchanged.
(C) Discontinue use of the grounds for horse shows, and schedule the public market for each and every weekend of the year.
(D) Schedule some horse shows for weekdays instead of weekends; and during those weekends, use the grounds as a public market instead.
(E) Schedule some weekend markets for weekdays instead of weekends; and during those weekends, use the grounds for horse shows instead.

Underlying assumption- no. of people attending horse show/weekend ~ no. of people attending public market/weekend

Cost of admission public market - $5/person --46 weeks/year
Cost of admission horse show - $10/person ---6 weeks/year

total revenue public market - $ 230/person/year
total revenue horse show - $60/person/year


(A) Increase the fee for admission to the public market, but leave the admission fees for horse shows unchanged. For every $1 increase in public market, total revenue increases by $46/person/year

(B) Increase the fees for admission to the horse shows, but leave the admission fee for the public market unchanged. For every $1 increase in horse show, total revenue increases by $6/person/year.

(C) Discontinue use of the grounds for horse shows, and schedule the public market for each and every weekend of the year. total increase of only $6/person/year

(D) Schedule some horse shows for weekdays instead of weekends; and during those weekends, use the grounds as a public market instead.

(E) Schedule some weekend markets for weekdays instead of weekends; and during those weekends, use the grounds for horse shows instead.


Options D and E assume that we get the same no. people during the weekdays like we do on weekends.

Hence A.

OA?

parallel_chase wrote:

poonam1279 wrote:Six weekends each year, Alpha Showgrounds are used exclusively for public horse shows. During all other weekends, the grounds are used excleusively as a public market. For its revenues, Alpha depends entierly on admission fees, and revenue from a typcial weekend horse show is far greater than from a typical weekend market. However, Alpha’s annual revenues from the market far exceed its annual revenues from horse shows.

Which of the following strategies, if implemented, would likely provide the greatest boost to Alpha’s revenues?

(A) Increase the fee for admission to the public market, but leave the admission fees for horse shows unchanged.
(B) Increase the fees for admission to the horse shows, but leave the admission fee for the public market unchanged.
(C) Discontinue use of the grounds for horse shows, and schedule the public market for each and every weekend of the year.
(D) Schedule some horse shows for weekdays instead of weekends; and during those weekends, use the grounds as a public market instead.
(E) Schedule some weekend markets for weekdays instead of weekends; and during those weekends, use the grounds for horse shows instead.

Underlying assumption- no. of people attending horse show/weekend ~ no. of people attending public market/weekend

Cost of admission public market - $5/person --46 weeks/year
Cost of admission horse show - $10/person ---6 weeks/year

total revenue public market - $ 230/person/year
total revenue horse show - $60/person/year


(A) Increase the fee for admission to the public market, but leave the admission fees for horse shows unchanged. For every $1 increase in public market, total revenue increases by $46/person/year

(B) Increase the fees for admission to the horse shows, but leave the admission fee for the public market unchanged. For every $1 increase in horse show, total revenue increases by $6/person/year.

(C) Discontinue use of the grounds for horse shows, and schedule the public market for each and every weekend of the year. total increase of only $6/person/year

(D) Schedule some horse shows for weekdays instead of weekends; and during those weekends, use the grounds as a public market instead.

(E) Schedule some weekend markets for weekdays instead of weekends; and during those weekends, use the grounds for horse shows instead.


Options D and E assume that we get the same no. people during the weekdays like we do on weekends.

Hence A.

OA?

Well lets say typically 100 people go to the market on the weekend. Using your logic that would be $500 in revenue before any increase in price. Now lets say that the price is increased by $1 and because of that increase in price 20 of the typical 100 people decide they won't go to the market. Now the revenue will be only $480. So they will actually lose money from raising the price.

I like answer choice E the best because we are increasing the number of horse shows on the weekend and these outperform a public market weekend.

I think it's E because :

Horse shows - 6 weekends , Public Markets : 46 weekends

Revenue from public markets far greater than revenue from horse shows even though individual weekend sales for horse shows are > individual weekend sales for public markets. So replace some public markets with horse shows - has the greatest revenue potential increase.

Option A - Increase fares for public markets leads to an increase in revenue but not to the same extent of E.

I don't think we can plug numbers as the numerical options can vary a lot and the results can change respectively.

Just my thoughts - what's the OA ?

IMO E goes the best.

Reason: With option E, the number of public market event is does not change but in turn the number of horse show events are increased. Since the admission fees does not change, the number of people attending the event will not get affected. So there will be a definite increase in revenue.


Kindly post OG's answer and explanation.

poonam1279 wrote:Six weekends each year, Alpha Showgrounds are used exclusively for public horse shows. During all other weekends, the grounds are used excleusively as a public market. For its revenues, Alpha depends entierly on admission fees, and revenue from a . However, Alpha’s annual revenues from the market far exceed its annual revenues from horse shows.

Which of the following strategies, if implemented, would likely provide the greatest boost to Alpha’s revenues?

(A) Increase the fee for admission to the public market, but leave the admission fees for horse shows unchanged.
(B) Increase the fees for admission to the horse shows, but leave the admission fee for the public market unchanged.
(C) Discontinue use of the grounds for horse shows, and schedule the public market for each and every weekend of the year.
(D) Schedule some horse shows for weekdays instead of weekends; and during those weekends, use the grounds as a public market instead.
(E) Schedule some weekend markets for weekdays instead of weekends; and during those weekends, use the grounds for horse shows instead.

I go with E as well ..

The question tells us that "On typcial weekend horse show is far greater than from a typical weekend market"
which shows people prefer Horse shows over market ona weekend.

other things remaining constant ... if we subsitute some weekends of markets with horse shows .. we are sure to increase the revenue because it will attract more admission..

According to the question, Horse show generate more revenues in weekends, so my strategy would be to provide more weekend slots for the same. Borrow some weekend slots from market and give it to lovely horses. They will bring in more dough to me (Alpha) I mean.

E fits the bill.

Thanks for your explanations.
OA is E

Analysis

The correct response is (E). A typical weekend horse show generates more revenue than a typical weekend market. Hence, increasing the number of weekend horse shows is the surest way, among the five choices, for Alpha to maximize revenue, especially if the number of days per year that the grounds are used as a market would at least remain the same—as (E) suggests.

(A) and (B) are incorrect choices for essentially the same reason. By increasing an admission fee, Alpha might either enhance or reduce its total revenues, depending on the decrease in attendance (if any) due to the fee increase. Besides, neither plan (A or B) would add to the number of days during which one or the other type of event takes place. Hence, neither plan (A or B) is as likely to succeed as the one that (E) suggests.

(C) is the worst of the five choices, and the easiest one to eliminate; replacing an event with one that generates significantly less revenue can only serve to reduce revenues.

(D) suggests a course of action that is unlikely to be as effective as the one that (E) suggests. Increasing the number of weekend markets might boost revenues. However, since a weekend market generates less revenue than a weekend horse show, the boost would be less than if the number of weekend horse shows were increased instead—which is what (E) suggests.

I agree with PC on A) despite the OA being E) If u were to strictly consider the premises as is then A) fits the bill the best!

I think this is open to argument.... Not familiar wiht the question type but if extraneous info can be brought in then E) looks good

Just my 2 cents....

IMO E

Guys can anyone give a decent reason why E is not right.