Evaluation type - CR

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Evaluation type - CR

by Vishnu88 » Fri May 13, 2011 11:38 pm
In the aftermath of a worldwide stock-market crash,Country T claimed that the severity of the stock-market crash it experienced resulted from the accelerated process of denationalization many of its industries underwent shortly before the crash.

Which of the following,if it could be carried out,would be most useful in an EVALUATION of Country T's assessment of the causes of the severity of its stock-market crash?

A) Calculating the average loss experienced by individual traders in Country T during the crash
B) Using economic theory to predict the most likely date of the next crash in Country T
C) Comparing the total number of shares sold during the worst days of the crash in Country T to the total number of shares sold in Country T just prior to the crash
D) Comparing the severity of the crash in Country T to the severity of the crash in countries otherwise economically similar to Country T that have not exeperienced recent denationalization.
E) Comparing the long-term effects of the crash on the purchasing power of the currency of Country T to the immediate,more severe short-term effects of the crash on the purchasing power of the currency of Country T.

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by HSPA » Fri May 13, 2011 11:56 pm
To me D and E are the contenders

I am not an economist to understand E.

IMO D.
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by Vishnu88 » Sat May 14, 2011 12:09 am
I went with D.

My take on why it isn't option E - E talks about the effects of the crash on purchasing power, whereas the cause effect from the stimulus is: accelerated denationalization -> severity of market crash.

IMO A,B and C are irrelevant.

Lets see if any of the experts here can validate my understanding.

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by rk10 » Mon May 16, 2011 11:38 pm
My pick is A considering that the question says Evaluate.
OA -Pl

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by AIM GMAT » Tue May 17, 2011 5:27 am
IMO D .

D seems the best option to evaluate the severity of the crash .

Whats the OA ?
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AIM GMAT

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by ajaarik » Tue May 17, 2011 8:12 am
I think, D should be the answer.