United Shipping Co: Manhattan GMAT

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AdamMac: Junior | Next Rank: 30 Posts; Posts: 15; Joined: Fri May 08, 2015 8:09 pm

by AdamMac » Fri May 08, 2015 8:26 pm

Because of rising costs, United Shipping Company raised its rates by ten percent last year. Many of its customers balked at the increase, however, and turned to a rival company whose rates were lower. In response, United Shipping Company began offering a package of services for a single rate that, though high, is still lower than the combined rates of the individual services. Officers of the company claim that this move will recoup the company's lost profits.

Which of the following, if true, provides the best basis for the officers' claim?

A) United Shipping will aggressively advertise the new package of services.

B) United Shipping's rival does not offer some of the services included in the package.

C) Marketing studies have shown that many of United Shipping's former customers would prefer a combined rate for their various shipping services.

D) United Shipping does not already offer all the services separately.

E) No other shipping company offers the same package of services as United Shipping.

Thoughts? I'll tell you in advance, that I have a big problem with the OA.

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Source: Beat The GMAT — Critical Reasoning | Fri May 08, 2015 8:26 pm

GMATGuruNY: GMAT Instructor; Posts: 15539; Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members; Location: New York, NY; Thanked: 13060 times; GMAT Score:790

by GMATGuruNY » Sat May 09, 2015 5:59 am

AdamMac wrote:Because of rising costs, United Shipping Company raised its rates by ten percent last year. Many of its customers balked at the increase, however, and turned to a rival company whose rates were lower. In response, United Shipping Company began offering a package of services for a single rate that, though high, is still lower than the combined rates of the individual services. Officers of the company claim that this move will recoup the company's lost profits.

Which of the following, if true, provides the best basis for the officers' claim?

A) United Shipping will aggressively advertise the new package of services.

B) United Shipping's rival does not offer some of the services included in the package.

C) Marketing studies have shown that many of United Shipping's former customers would prefer a combined rate for their various shipping services.

D) United Shipping does not already offer all the services separately.

E) No other shipping company offers the same package of services as United Shipping.

Plan: United Shipping now offers a package rate for its services.
Conclusion: Customers who turned to a rival company will be lured back, enabling United Shipping to recoup its lost profits.
Only C provides a link between the package rate and the luring back of customers:
Many of United Shipping's former customers prefer a combined rate for their various shipping services.

The correct answer is C.

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AdamMac: Junior | Next Rank: 30 Posts; Posts: 15; Joined: Fri May 08, 2015 8:09 pm

by AdamMac » Sat May 09, 2015 6:41 am

Hi Mitch,

Thank you for your response. Here's the thing though. I'm doing pretty well so far in CR, usually getting about 90% right. What I've encountered so far with the OG, and GMAT prep is that answers like C "many customers" or "a study shows" are wrong, if not universally.

With "many" that is an ambiguous term that I feel the GMAT is trying to catch people making assumptions about.

With studies, the GMAT seems to be obsessed trying to catch are willingness to suppose they're representative.

OK, granted C does the most of any of these options, but C would be a wrong option in any official question. And the question is asking for an option that provides a basis for the claim, but C really provides very little basis.

Maybe it's just Manhattan GMAT's writing syle. What do you think?

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talaangoshtari: Master | Next Rank: 500 Posts; Posts: 154; Joined: Wed May 21, 2014 4:29 amFollowed by: 1 member; Thanked: 8 times

by talaangoshtari » Sun May 10, 2015 7:06 am

Hi

Doesn't the answer choice E provide the validity that there is no other cause?

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akash singhal: Master | Next Rank: 500 Posts; Posts: 152; Joined: Fri Apr 24, 2015 1:39 amFollowed by: 3 members; Location: Rourkela Odisha India; Thanked: 2 times; GMAT Score:650

by akash singhal » Sun May 10, 2015 10:23 pm

AdamMac wrote:Because of rising costs, United Shipping Company raised its rates by ten percent last year. Many of its customers balked at the increase, however, and turned to a rival company whose rates were lower. In response, United Shipping Company began offering a package of services for a single rate that, though high, is still lower than the combined rates of the individual services. Officers of the company claim that this move will recoup the company's lost profits.

Which of the following, if true, provides the best basis for the officers' claim?

A) United Shipping will aggressively advertise the new package of services.

B) United Shipping's rival does not offer some of the services included in the package.

C) Marketing studies have shown that many of United Shipping's former customers would prefer a combined rate for their various shipping services.

D) United Shipping does not already offer all the services separately.

E) No other shipping company offers the same package of services as United Shipping.

Thoughts? I'll tell you in advance, that I have a big problem with the OA.

I think the answer is C

A:- is irrelevant even if it is advertised their is no proof that the package is good thus eliminate A
B:- Rivals dont offer that package doesnt proof that package is good might it has some flaws thats why they dont offer it... doesnt support the claim eliminate B
D:- We are talking about the package as a whole individual services is not much support...moreover it is asked how they would gain back lost profits (means previous customers) doesnt consult this issue so remove D
E:- this again may be because the package is not good cant say it supports the claim eliminate E
C:- Okay here its stated that their previous customers prefer package deals than individual service plus as said it would cost less thus the company will gain back their lost customers hence profits

C is the answer

I hope i am right and so is my explanation...

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