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Princeton Test Question CR

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Princeton Test Question CR

by dhonu121 » Mon Sep 19, 2011 1:12 am
In a study of factors affecting employee satisfaction , investigators polled staff at eight companies with over $100 million in revenues and benefits including flexible schedules and on-site daycare. The investigators found that overall satisfaction levels at the companies were high, that the companies enjoyed profit margins averaging over 20% over the last five years, and that the rates of employee departures at these companies had varied between 1% and 5% over this period.

Which of the following conclusions may be drawn from the information above?

(A) Flexible schedules and daycare are important benefits for raising overall levels of employee satisfaction.
(B) High profitability levels for companies with revenues over $100 million are most likely the result of high employee satisfaction levels.
(C) Companies without daycare and flexible-schedule benefits have higher rates of employee departures than do those with these benefits.
(D) At least 95% of employees will stay for at least one year at some companies with daycare benefits.
(E) More companies have recently begun offering daycare and flexible schedule benefits to attract potential employees who are also parents.

OA:D

What's wrong with A.
Also D just talks about one of the benefits.It misses the point about flexible timings.
Kindly post your analysis.
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by cans » Mon Sep 19, 2011 1:28 am
nice one...
A) its just mentioned that overall satisfaction level at companies with over $100 million in revenues and benefits including flexible schedules and on-site daycare is high. Nowhere it is mentioned that because of these benefits, level was high.
B) again an interpretation which can be incorrect also. maybe high profitability level was cause of high satisfaction level
C) Nothing is mentioned about companies without daycare benefits. out of scope
E) Out of scope again.
D) rate of employee departure varies between 1% and 5% and thus atleast 95% will stay
IMO D
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by dhonu121 » Mon Sep 19, 2011 1:50 am
A talks about the importance of both of those benefits.Although the argument does not mention that they are important as such,but they mentioned that the company they surveyed had those benefits and the employees were satisfied.Cannot that be taken to be the reason for A to be correct.Simply that those benefits are important would be right to say.
D mentions just one of the two benefits mentioned in the argument.And goes on to make the same conclusion as the argument.Isnt that wrong ?
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by cans » Mon Sep 19, 2011 2:00 am
dhonu121 wrote:A talks about the importance of both of those benefits.Although the argument does not mention that they are important as such,but they mentioned that the company they surveyed had those benefits and the employees were satisfied.Cannot that be taken to be the reason for A to be correct.Simply that those benefits are important would be right to say.
D mentions just one of the two benefits mentioned in the argument.And goes on to make the same conclusion as the argument.Isnt that wrong ?
See you yourself mentioned that argument doesn't mention that they are important. its just mentioned that company had them and employees were satisfied. That can be because of other factors also. maybe due to high profitability level....
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by navami » Mon Sep 19, 2011 11:37 am
D
This time no looking back!!!
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by gunjan1208 » Tue Sep 20, 2011 12:42 am
D
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by mundasingh123 » Tue Sep 20, 2011 11:31 am
dhonu121 wrote:In a study of factors affecting employee satisfaction , investigators polled staff at eight companies with over $100 million in revenues and benefits including flexible schedules and on-site daycare. The investigators found that overall satisfaction levels at the companies were high, that the companies enjoyed profit margins averaging over 20% over the last five years, and that the rates of employee departures at these companies had varied between 1% and 5% over this period.

Which of the following conclusions may be drawn from the information above?

(A) Flexible schedules and daycare are important benefits for raising overall levels of employee satisfaction.
(B) High profitability levels for companies with revenues over $100 million are most likely the result of high employee satisfaction levels.
(C) Companies without daycare and flexible-schedule benefits have higher rates of employee departures than do those with these benefits.
(D) At least 95% of employees will stay for at least one year at some companies with daycare benefits.
(E) More companies have recently begun offering daycare and flexible schedule benefits to attract potential employees who are also parents.

OA:D

What's wrong with A.
Also D just talks about one of the benefits.It misses the point about flexible timings.
Kindly post your analysis.
you are confusing correlation with causation
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by sl750 » Wed Sep 21, 2011 9:02 am
What about B. The argument talks about high satisfaction levels which could imply higher productivity and hence high profitability

Choice D seems to go far and conclude that at least 95% will stay for a year or more at some company with daycare benefits. However, the investigators polled staff of companies with over $100 million in revenue and those who provided benefits such as flexi schedules and day care. They picked companies that met certain criterion
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by mad2011 » Thu Sep 22, 2011 1:19 am
D is based on facts stated in Premises
For all other,one needs to assume s'thing
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by saketk » Thu Sep 22, 2011 8:01 pm
difficult question. I chose B :(

I analysed this question to find out my mistake.

This is what I found...

Investors only investigated those eight companies with over $100 million in revenues and benefits including flexible schedules and on-site daycare -- means 'flexible schedule' and 'on-site daycare' were the CAUSE. Attrition rate at 1% to 5% was the EFFECT

This will rule out option B because we cannot reverse the CAUSE and EFFECT.

Option D: Conclusion is based on the last line ' rates of employee departures at these companies had varied between 1% and 5% over this period.'

Hence the correct answer is D.
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by gunjan1208 » Thu Sep 22, 2011 9:04 pm
This question was a big learning from me few days back when I read it from the source. In fact, in the critical reasoning this is easiest of the question but we tend to reply from reasoning point of view only.

While its very easy to solve this using the numbers.

I have kept this is my error log to read it again before the actual GMAT.


Thanks
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