Morganville

This topic has expert replies
Legendary Member
Posts: 572
Joined: Fri Feb 22, 2008 9:25 am
Thanked: 21 times

Morganville

by reachac » Mon Jul 14, 2008 10:51 pm
Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist’s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

Junior | Next Rank: 30 Posts
Posts: 22
Joined: Mon May 05, 2008 10:51 pm
Thanked: 1 times

by sumant1808 » Mon Jul 14, 2008 11:27 pm
IMO B

A)Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
Point is not related to successful campaign.

B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
Stores will have an impact only if residents of morganville do almost all of their shopping at these stores.

C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
we should focus on towns with saveall stores

D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
employment is out of scope

E. Do newly opened SaveAll stores ever lose money during their first five years of operation
Out of scope

Senior | Next Rank: 100 Posts
Posts: 91
Joined: Sun Jul 13, 2008 10:36 pm
Thanked: 1 times
GMAT Score:770

by BlueRain » Mon Jul 14, 2008 11:52 pm
IMO, C.

The "support" behind the activist argument is that SaveAll store causes bankruptcies of the existing stores, but what if the >1/4 bankruptcies rate is normal? What is the INCREASE/CHANGE in bankruptcies in a given town?

C would provide a baseline number for comparison.

Legendary Member
Posts: 1159
Joined: Wed Apr 16, 2008 10:35 pm
Thanked: 56 times

by raunekk » Tue Jul 15, 2008 2:11 am
IMO: C..


"Quater" of how much??

Master | Next Rank: 500 Posts
Posts: 401
Joined: Fri May 04, 2007 9:21 am
Thanked: 3 times
Followed by:1 members

by NSNguyen » Tue Jul 15, 2008 6:47 am
premises:
Whenever, Saveall is opened in any districts, other stores in the central district get bankruptcy.
=> to keep central stores healthy( not bankruptcy), Morganville should prevent SaveAll from opening.
To evaluate the reasoning, we must consider how effect of SaveAll cause for central stores after opening.

A, irre
B, reveal the fact that most of irrelevance to the issue
C, how if SaveAll does not open any store in the outskirt and the percentage of bankruptcy still a quarter.
D, E, OOS,

This reasoning contracts a fault assumption that a quarter bankcruptcy caused by SaveAll opening.
OA: C
Please share your idea and your reasoning :D
https://bmnmed.com/home/
https://nguyensinguyen.vietnam21.org

Legendary Member
Posts: 572
Joined: Fri Feb 22, 2008 9:25 am
Thanked: 21 times

by reachac » Tue Jul 15, 2008 8:16 am
OA is C

@Ranuekk, liked ur reasoning the best, short and succint :D

I went with B :(

Master | Next Rank: 500 Posts
Posts: 340
Joined: Thu Jun 12, 2008 8:09 am
Location: India
Thanked: 6 times

by kiranlegend » Tue Jul 15, 2008 10:01 pm
IMO C as well..

but couldn't understand raunek's explanation? my eagerness to find it out is due to raeahac's complimet:P

could anyone of you please explain what did you get from 'quater of how much?' ?

Newbie | Next Rank: 10 Posts
Posts: 8
Joined: Sat Jun 27, 2009 1:36 am

by jerrykid » Thu Jul 02, 2009 5:37 am
I am for C.

B:Even if a small proportion of the population do shopping at the central district, the opening of SaveAll could still negatively affect the shopping at the central district.

C: If the normal bankruptcy rate is 25% for central shopping district stores, then the opening of SaveAll is not going to cause additional closure of central shopping district stores. Therefore, C should be most useful in evaluating the argument.
Beat the GMAT !!!

Junior | Next Rank: 30 Posts
Posts: 21
Joined: Mon Apr 06, 2009 5:32 am

by walker » Thu Jul 02, 2009 7:09 pm
between B and C

B - is closer but.

Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?

The answer to this question could be
1) YES -> doesn't evaluate the reason (within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district).

2) NO-> doesn't evaluate the reason (within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district).



C - 'Quarter' - what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
Makes sense

User avatar
Master | Next Rank: 500 Posts
Posts: 253
Joined: Fri Dec 26, 2008 8:39 pm
Thanked: 8 times
Followed by:1 members

Re: Morganville

by BlindVision » Thu Jul 02, 2009 10:46 pm
reachac wrote:Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist’s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
I would have gone with "B"...

B) If a large percentage of residents currently do almost all of their shopping at stores in Morganville, then opening a SaveAll may hurt the healthy shopping district. In contrast, if a large percentage of residents do not do almost all of their shoppping at stores in Morganville, then opening a SaveAll may not do much harm to the shopping district.

C) IMO there's a flaw, because what proportion of the stores in those districts suffer bankruptcy during a typical five-year period can be misleading; anything can be the cause of bankruptcies during the typical five-year period - i.e. poor management, down economy, job layoffs, etc. However, if the answer choice included the word "SaveAll" stores as the cause, like it does in the other answer choices, then I can see "C" being the answer.

What is the source of the question?
Life is a Test

Legendary Member
Posts: 549
Joined: Wed Jan 06, 2010 7:00 am
Thanked: 16 times
Followed by:3 members

by ssgmatter » Tue May 18, 2010 8:12 am
reachac wrote:Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist�s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!
Best-
Amit

User avatar
GMAT Instructor
Posts: 613
Joined: Thu Mar 22, 2007 6:17 am
Location: madrid
Thanked: 171 times
Followed by:64 members
GMAT Score:790

by kevincanspain » Tue May 18, 2010 3:06 pm
ssgmatter wrote:
reachac wrote:Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist�s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!
Why do you think that B is relevant?
Kevin Armstrong
GMAT Instructor
Gmatclasses
Madrid

Legendary Member
Posts: 549
Joined: Wed Jan 06, 2010 7:00 am
Thanked: 16 times
Followed by:3 members

by ssgmatter » Tue May 18, 2010 6:32 pm
kevincanspain wrote:
ssgmatter wrote:
reachac wrote:Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist�s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!
Why do you think that B is relevant?
My take on B:

If B is YES, then most of the shopping will occur in the Save all discount store, so that will affect the central shopping district.

If B is NO, then central shopping district will survive.

Does it make sense?
Best-
Amit

Master | Next Rank: 500 Posts
Posts: 134
Joined: Mon Mar 01, 2010 7:08 am
Thanked: 3 times

by bupbebeo » Tue May 18, 2010 7:12 pm
reachac wrote:Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist�s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

This is evaluate question. According to Power Score methods, we should use Variance Test to choose the right answer

We can easily eliminate A, D, E. and I see many people confuse between B, and C. Now, let's attack B and C to see which one is better.

Let's attack B first
If B is Yes. customers do most of their shopping at Morganville. when SaveAll open, Morganvill may suffer bankruptcy.
If B is No. Customers do NOT do most of their shopping at Morganvill. When Save All open, Morganville also may suffer bankruptcy.

So even B is Yes or No, Morganvill may have suffer the same situation. This violates variance test which states that Morganville should have different situation when B has different answer. Yes or No.

Therefore, B is not correct

Now answer C

If in healthy central shopping mall, in five-year period, 25 or more portion of current companies go bankruptcy, the appearance of Saveall is chance and this appearance is not a cause of bankruptcy of other businesses. therefore, the reasoning of community activist is wrong.

Hope that helps

Legendary Member
Posts: 549
Joined: Wed Jan 06, 2010 7:00 am
Thanked: 16 times
Followed by:3 members

by ssgmatter » Sun May 30, 2010 5:22 am
kevincanspain wrote:
ssgmatter wrote:
reachac wrote:Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist�s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
I believe it has to be B for this one......Please explain this one in details....really very confused between B and C.....rest of the options can be easily eliminated I believe...

Thanks!
Why do you think that B is relevant?
Kevin,

Any thoughts why it cannot be B?
Best-
Amit