Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.
The above statements, if true, indicate that Airline A has made which of the following conclusions?
A)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
B)The Federal Aviation Administration will approve Airline A's specific proposal.
C)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
D)There are no safer ways in which Airline A can increase revenues.
E)Passenger safety is less important than increasing revenue.
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niketdoshi123
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Birottam Dutta
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Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.
The above statements, if true, indicate that Airline A has made which of the following conclusions?
A)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards. --- Correct. As Airline A has made the decision and still awaits approval from Federal Aviation, this is a suitable conclusion that can be drawn.
B)The Federal Aviation Administration will approve Airline A's specific proposal. --- Irrelevant
C)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel. --- The revenue from new seats need not balance out the cost of jet fuel but all seats put together should help make profit. Incorrect
D)There are no safer ways in which Airline A can increase revenues. --- The question is not about safer option but about an option which can generate revenue at minimal costs. Incorrect
E)Passenger safety is less important than increasing revenue.--- Out of context
The above statements, if true, indicate that Airline A has made which of the following conclusions?
A)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards. --- Correct. As Airline A has made the decision and still awaits approval from Federal Aviation, this is a suitable conclusion that can be drawn.
B)The Federal Aviation Administration will approve Airline A's specific proposal. --- Irrelevant
C)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel. --- The revenue from new seats need not balance out the cost of jet fuel but all seats put together should help make profit. Incorrect
D)There are no safer ways in which Airline A can increase revenues. --- The question is not about safer option but about an option which can generate revenue at minimal costs. Incorrect
E)Passenger safety is less important than increasing revenue.--- Out of context
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niketdoshi123
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Can you please elaborate your explanation..Birottam Dutta wrote:Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.
The above statements, if true, indicate that Airline A has made which of the following conclusions?
A)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards. --- Correct. As Airline A has made the decision and still awaits approval from Federal Aviation, this is a suitable conclusion that can be drawn.
B)The Federal Aviation Administration will approve Airline A's specific proposal. --- Irrelevant
C)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel. --- The revenue from new seats need not balance out the cost of jet fuel but all seats put together should help make profit. Incorrect
D)There are no safer ways in which Airline A can increase revenues. --- The question is not about safer option but about an option which can generate revenue at minimal costs. Incorrect
E)Passenger safety is less important than increasing revenue.--- Out of context
I eliminated A because it talks about cost for ensuring safety standards and chose C because it gives the reason that the Airline will definitely increase its revenues.
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Brent@GMATPrepNow
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Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.
The above statements, if true, indicate that Airline A has made which of the following conclusions?
A)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
It seems that the airline has made this conclusion. If Airline A felt that the addition of the "seats" wouldn't generate more revenue than the cost of ensuring that these seats meet safety standards, then they certainly wouldn't propose adding them. I'll keep this answer choice for now
B)The Federal Aviation Administration will approve Airline A's specific proposal.
No. While the airline feels that the proposal will increase revenue, it does not seem to conclude that the FAA will approve of it. Eliminate B
C)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
No. The argument is about increasing revenue. The relationship between the cost of adding seats and the cost of jet fuel plays no role here. Eliminate C
D)There are no safer ways in which Airline A can increase revenues.
No. The argument is about increasing revenue.
E)Passenger safety is less important than increasing revenue.
No. The airline does not suggest that they don't care about safety.
Looks like A is the best answer.
Cheers,
Brent
The above statements, if true, indicate that Airline A has made which of the following conclusions?
A)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
It seems that the airline has made this conclusion. If Airline A felt that the addition of the "seats" wouldn't generate more revenue than the cost of ensuring that these seats meet safety standards, then they certainly wouldn't propose adding them. I'll keep this answer choice for now
B)The Federal Aviation Administration will approve Airline A's specific proposal.
No. While the airline feels that the proposal will increase revenue, it does not seem to conclude that the FAA will approve of it. Eliminate B
C)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
No. The argument is about increasing revenue. The relationship between the cost of adding seats and the cost of jet fuel plays no role here. Eliminate C
D)There are no safer ways in which Airline A can increase revenues.
No. The argument is about increasing revenue.
E)Passenger safety is less important than increasing revenue.
No. The airline does not suggest that they don't care about safety.
Looks like A is the best answer.
Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
