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To Develop Or Not To... (MGMAT)

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To Develop Or Not To... (MGMAT)

by NEGU » Tue Jun 08, 2010 7:02 pm
City Controller: 63% of our residents voted to approve the developer's request to build a national chain hotel on the site of the old consignment store. The hotel will increase our revenue base and, therefore, provide more money for schools and community services.

Mayor: But our recent survey showed that the most important reason people want to live here is our small-town feel resulting from the local ownership of the vast majority of businesses.

What is the best explanation for the apparent contradiction in opinions cited by the controller and the mayor?

A) Most people believe having a small-town feel is more important than having quality schools.

B) A locally-owned business might be able to generate as much revenue as a well-known hotel chain.

C) The recent survey did not ask about preferences for a chain hotel versus a locally-owned bed and breakfast.

D) An increase in the town's revenue base may not result in additional money for the schools.

E) The recent survey cited by the mayor polled people who are considering moving to the town.

Answer: [spoiler](E)[/spoiler]

Would anyone be able clarify why the answer is E and not B. This question appeared in the MGMAT CAT.
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by hardik.jadeja » Tue Jun 08, 2010 7:22 pm
City Controller's argument says that people are in favor of building a national chain hotel on the site of the old consignment store.

Whereas Mayor's argument says that people they surveyed said they like the small-town feel resulting from the local ownership of the vast majority of businesses. So in a way, they would want to save the local consignment store.

So there is a contradiction in the argument. On one hand people are saying they want the a national chain hotel and, on the other hand they want to save the local consignment store. How can this be possible? There is only one way this can be possible and that is if both City Controller and Mayor are referring to different group of people. And that's what is given in option E.

If option B is correct then why would the residents want to a national chain hotel in the town? There is no reason for the residents to vote in favor of building a national chain hotel on the site of the old consignment store. City Controller's argument clearly says that there is a bunch of people who are in favor of building a national chain hotel. So this option can't be true.

Hope that helps..
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