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Demand for hotel rooms---Evaluate

Expert replies
by amysky_0205 » Sun Mar 10, 2013 6:29 pm
Over the last five years, demand for hotel rooms in Cenopolis has increased significantly, as has the average price Cenopolis hotels charge for rooms. These trends are projected to continue for the next several years. In response to this economic forecast, Centennial Commerical, a real state developer, is considering a plan to convert several unoccupied office buildings it owns in Cenopolis inot hotels in order to maximize it's revenue from these properties.


Which of the following would it be most useful for Cenennial Commerical to know in evaluating the plan it is considering ?

Whether the population of Cenopolis is expected to grow in the next several years.
Whether demand for office space in Cenopolis is projected to increase in the near future.
Whether the increased demand for hotel rooms, if met, is likely to lead to an increase in the demand for other travel-related services.
Whether demand for hotel rooms has also increased in other cities where Centennial owns office buildings
Whether, on average, hotels that have been created by converting office buildings have fewer guest rooms than do hotels that were built as hotels.

OA: B

I chose E instead of the right answer.
can someone explain this one?
thank u!
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Source: — Critical Reasoning |

by neha24 » Sun Mar 10, 2013 7:41 pm
ur main aim was to maximize the profit so when u converting those unoccupied office buildings u first ought to realize whether there is any scope of making money by using those places as office places and that what B is doing .E is not making any difference .after all how does it matter how many rooms u have in what ever conversions u do !!
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by srcc25anu » Sun Mar 10, 2013 8:38 pm
We are asked to evaluate the claim made by the plan of converting office space into hotels. Any answer choice that either weakens / strengthens the claim stands a good chance to be that evaluation criteria. Lets consider choice B. whether demand for office space os projected to increase. If YES, then it weakens the claim and if NO, then it strengthens the claim.
Hence B is correct.
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