MGMAT - Freewheeler

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MGMAT - Freewheeler

by acecoolan » Mon Dec 08, 2008 9:03 pm
Fedora Convertibles began selling the Freewheeler – its newest convertible sports car – in May of this year. Fedora sent out a press release last month indicating that the Freewheeler’s sales for May, June, July, and August totaled over 50,000. As a result, Fedora will in all likelihood easily meet its stated sales goal of 120,000 for Freewheeler's first year of release.

Which of the following would be most useful in order to evaluate this prediction?
a) Fedora is the market leader in this category of automobile.
b) Freewheeler is significantly more expensive than similar models produced by Fedora’s competitors.
c) Fedora released a similar model in May of the previous year.
d) Sales of similar models of cars are typically much higher in the summer months than at any other time of the year.
e) Freewheeler sales are important to meeting the sales goals of Fedora as a company.

OA after some discussion

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by scoobydooby » Mon Dec 08, 2008 9:15 pm
D?

a) Even if Fedora is the market leader in this category, it may fall short of its targets for freewheeler.

b) If Freewheeler is significantly more expensive than similar models produced by Fedora’s competitors than people might not buy freewheeler, sales might fall below target

c) Even if Fedora released a similar model in May of the previous year we do not know if it did meet its target last year and if it will do so this year

d) If Sales of similar models of cars are typically much higher in the summer months than at any other time of the year than possibly this trend will affect Freewheeler and it will not sell enough in winter and not meet its target-correct

e) Freewheeler sales are important to meeting the sales goals of Fedora as a company-irrelevant. Freewheeler sales target discussed.

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by pbanavara » Tue Dec 09, 2008 12:25 am
I think this falls into what Kaplan calls 'Numerical reasoning' ..

4 months, more than 50K cars sold - average of over 12K per month. If the same average continued for 8 months there would be > 140K cars sold. The target is 120K. So to meet this estimate, even if the sales of other months fell down below the average by a small extent it should still be ok.

Choice D - provides this information. Other choices don't chime well with the question. I would choose D.

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by ronniecoleman » Tue Dec 09, 2008 1:29 am
IMO D
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by poonam1279 » Tue Dec 09, 2008 2:39 am
I would also chose D

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by Spring2009 » Tue Dec 09, 2008 2:48 am
D...
May - August : peak time.
Other months: may or may not sell as many as May-August

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by raunekk » Tue Dec 09, 2008 2:55 am
i somehow dont find it a typical gmat question....

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by acecoolan » Tue Dec 09, 2008 7:04 am
'D' it is ....I think many of u have stated the right reasons s well.

Yep raunekk - I felt the same ..but then I I think CR is a weak link for me anyway :cry:

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by shafeek » Sat Dec 13, 2008 5:48 pm
This Question is either from OG or Kaplan. i remember seeing it.

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by nervesofsteel » Sat Dec 13, 2008 11:05 pm
One more vote for D

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by vittalgmat » Sun Dec 14, 2008 3:36 am
D it is.

The other choices have only partial info and an unique inference cannot be extracted. Only D can give some solid clues to predict the future sales.

Good question.

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Re: MGMAT - Freewheeler

by vish150783 » Mon Dec 15, 2008 6:43 am
acecoolan wrote:Fedora Convertibles began selling the Freewheeler – its newest convertible sports car – in May of this year. Fedora sent out a press release last month indicating that the Freewheeler’s sales for May, June, July, and August totaled over 50,000. As a result, Fedora will in all likelihood easily meet its stated sales goal of 120,000 for Freewheeler's first year of release.

Which of the following would be most useful in order to evaluate this prediction?
a) Fedora is the market leader in this category of automobile.
b) Freewheeler is significantly more expensive than similar models produced by Fedora’s competitors.
c) Fedora released a similar model in May of the previous year.
d) Sales of similar models of cars are typically much higher in the summer months than at any other time of the year.
e) Freewheeler sales are important to meeting the sales goals of Fedora as a company.

OA after some discussion
A) IRRELEVANT
B) IRRELEVANT
C) Says nothing about the similar model. LACKS INFORMATION
D) CORRECT.
E) IRRELEVANT

I think this question can be solved by blind elimination.

The reason why D is correct is because Sales of similar models of cars gives us a comparison between

How A performed in summer compared to the total sales(yearly)
How B performed in summer compared to the total sales(yearly)

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by ashley.com » Fri May 13, 2016 2:23 am
Option D is winner!