First-time computer buyers buying PXC

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aspirant2011: Legendary Member; Posts: 1574; Joined: Fri Jan 28, 2011 2:52 amFollowed by: 13 members; Thanked: 88 times

by aspirant2011 » Mon May 02, 2011 10:09 am

First-time computer buyers buying PXC home computers typically buy models that cost much less and have a smaller profit margin per computer than do PXC computers bought by people replacing their computers with more powerful models. Last year PXC's profits from computer sales were substantially higher than the previous year, although about the same number of PXC computers were sold and the prices and profit margins for each computer model that PXC sells remained unchanged. If the statements above are true, which of the following is most strongly supported by them?

A. PXC's competitors raised the prices on their computers last year, making PXC computers more attractive to firsttime computer buyers.
B. The number of people buying PXC computers who also bought PXC computer-related products, such as printers,was larger last year than the previous year.
C. Among computer buyers who bought a PXC computer to replace their existing computer, the proportion who were replacing a computer made by a competitor of PXC was greater last year than the previous year.
D. The proportion of PXC computers bought by first-time computer buyers was smaller last year than the previous year.
E. PXC's production costs for its computers were lower last year than they had been the previous year.

[spoiler]OA: C vs D???? Which one is better and why????[/spoiler]

Source: Beat The GMAT — Critical Reasoning | Mon May 02, 2011 10:09 am

sourabh33: Master | Next Rank: 500 Posts; Posts: 135; Joined: Tue Mar 22, 2011 12:01 pmFollowed by: 3 members; Thanked: 21 times; GMAT Score:720

by sourabh33 » Mon May 02, 2011 1:40 pm

D should be better, as it exactly gets derived from the argument above without assuming thing else.

rohu27: Legendary Member; Posts: 586; Joined: Tue Jan 19, 2010 4:38 amFollowed by: 5 members; Thanked: 31 times; GMAT Score:730

by rohu27 » Mon May 02, 2011 4:48 pm

Beauty of inference questions is that answer is clearly there in the stimulus, just have to find it.
Wheneevr stuck between 2 choices for an inference question, i take a second to go back to the argument and give a thorough reading(wihin 15-20 secs) and then it will be clear which choice to omit.

C is so out of scope we dnt know anything abt the competitors what they sell at what price. stimulus clearly mentions "First-time computer buyers buying PXC home computers". once you get this, you can easily decide C is making lot of assumptions, which are not allowed on inference questions.

Have time? https://www.beatthegmat.com/730-q-50-v40 ... 88058.html

havok: Senior | Next Rank: 100 Posts; Posts: 94; Joined: Tue Jun 30, 2009 4:51 pmFollowed by: 7 members; Thanked: 24 times; GMAT Score:750

by havok » Mon May 02, 2011 5:23 pm

D is the best answer. Reading the question alone leads to that conclusion, so assuming normal flow of logic, same price and same NUMBER of computers sold means the proportions must have changed.

aspirant2011: Legendary Member; Posts: 1574; Joined: Fri Jan 28, 2011 2:52 amFollowed by: 13 members; Thanked: 88 times

by aspirant2011 » Tue May 03, 2011 4:53 am

yup the OA is D........thanks to you all.......

AIM GMAT: Legendary Member; Posts: 857; Joined: Wed Aug 25, 2010 1:36 amFollowed by: 15 members; Thanked: 56 times

by AIM GMAT » Tue May 03, 2011 6:08 am

A. PXC's competitors raised the prices on their computers last year, making PXC computers more attractive to firsttime computer buyers. -- [Out of scope to disscuss about t he competitors]

B. The number of people buying PXC computers who also bought PXC computer-related products, such as printers,was larger last year than the previous year. -- [Buying related products and profit from those is irrelevant to discuss]

C. Among computer buyers who bought a PXC computer to replace their existing computer, the proportion who were replacing a computer made by a competitor of PXC was greater last year than the previous year. -- [Again talking about the competitor is out of scope ]

D. The proportion of PXC computers bought by first-time computer buyers was smaller last year than the previous year. -- [Bingo !!! This seems something that might give a reason for the change in profit despite no chnage in number of computers sold ]

E. PXC's production costs for its computers were lower last year than they had been the previous year. -- [Nope the arguments says that the profits remained same for both the years , so we need not to bother about the production cost etc .]

Thanks & Regards,
AIM GMAT

HSPA: Legendary Member; Posts: 1101; Joined: Fri Jan 28, 2011 7:26 amFollowed by: 13 members; Thanked: 47 times; GMAT Score:640

by HSPA » Tue May 03, 2011 6:15 am

+1 for D

First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

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