SaveAll Stores

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crackgmat007: Legendary Member; Posts: 882; Joined: Fri Feb 20, 2009 2:57 pmFollowed by: 1 member; Thanked: 15 times; GMAT Score:690

by crackgmat007 » Thu May 14, 2009 7:49 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?

IMO - B-->Depending the % of shoppers, impact on the stores at M can be determined.

But the answer seems to be C, can anyone explain why? Tx much

Source: Beat The GMAT — Critical Reasoning | Thu May 14, 2009 7:49 pm

PAB2706: Master | Next Rank: 500 Posts; Posts: 260; Joined: Sun Oct 12, 2008 8:10 pm; Thanked: 4 times

by PAB2706 » Thu May 14, 2009 11:32 pm

IMO C

The argument puts a complete blame on the discount shops on the outskirts... It assumes that there is no other reason for bankruptcy of district shops.

So answer to C can give us a data for a typical year withou the influence of the discount shops, then the conclusion of the argument can be precisely derived.

Minheequang: Junior | Next Rank: 30 Posts; Posts: 19; Joined: Tue May 12, 2009 11:55 pm

Re: SaveAll Stores

by Minheequang » Fri May 15, 2009 11:30 pm

Yes C

Requirement: To keep central shopping healthy
Action: prevent open of Saveall outside central shopping of town
Reason: in 5 years, more than 1/4 stores in central shopping went bankrupcy
--> Assumption: if in 5 years, more than 1/4 stores in central shopping went bankrupcy --> central shopping stores of town are not healthy

Only C has such relevant information. Others do not

sanp_l: Master | Next Rank: 500 Posts; Posts: 160; Joined: Sun May 03, 2009 1:17 amFollowed by: 1 member; Location: Rourkela/Hyderabad; Thanked: 4 times

by sanp_l » Sat May 16, 2009 12:17 am

The activist states a fact that a quarter of stores get closed due to the save all discount department in other small cities with a central shopping district.

Campaigns of other activists in other towns is of no point. Hence not A.

Even if we get the percentage of people doing their shopping from the city, we really don't know what percentage of it shops from save all or from the central district. The case in question is the closure of stores due to the opening of the save all department. Even if 20% of the population shop from the city, then also it might be true that all of them shop from the save all deprtment. In that case too, the normal central stores get effected. Hence not B.

C gives us an answer for the impact the opening of the save all store might have. It will be usefull to evaluate the face when the activist in the passage says that a quarter of stores face bankruptcy.

D and E also dont have any direct impact.

Hence C.

Hope it helps.

Sandy

crackgmat007: Legendary Member; Posts: 882; Joined: Fri Feb 20, 2009 2:57 pmFollowed by: 1 member; Thanked: 15 times; GMAT Score:690

by crackgmat007 » Mon May 18, 2009 9:49 am

thanks all!!

aj5105: Legendary Member; Posts: 1169; Joined: Sun Jul 06, 2008 2:34 amFollowed by: 1 member; Thanked: 25 times

by aj5105 » Tue May 19, 2009 9:32 am

To evaluate it's important for us to know what's scene like in healthy shopping district. Based on that data we could access the scene in Morganville.

(C)

mason77: Master | Next Rank: 500 Posts; Posts: 100; Joined: Tue Aug 05, 2014 11:28 am

by mason77 » Sun May 15, 2016 2:25 pm

. I also think that the right answer is C.

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