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Tough CR question!!!

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Tough CR question!!!

by rakeshd347 » Mon Sep 30, 2013 2:36 am
Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract
declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by
creating several standing room only "seats" in which passengers would be propped against a padded backboard
and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented
without prior approval by the Federal Aviation Administration. The above statements, if true, indicate that Airline
A has made which of the following conclusions?
"¢ The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats
meet safety standards.
"¢ The Federal Aviation Administration will approve Airline A's specific proposal.
"¢ The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
"¢ There are no safer ways in which Airline A can increase revenues.
"¢ Passenger safety is less important than increasing revenue.

OA is A
Source:MGMAT
Last edited by rakeshd347 on Mon Sep 30, 2013 7:19 pm, edited 1 time in total.
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by mevicks » Mon Sep 30, 2013 3:23 am
rakeshd347 wrote: The above statements, if true, indicate that Airline A has made which of the following conclusions?

"¢ The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
Strong contender. The airline went ahead with the "weird and risky proposal" only after considering some monetary benefit. This point gives one such reason.
"¢ The Federal Aviation Administration will approve Airline A's specific proposal.
This is a generalized assumption and is not focusing on Airlines economic condition.
"¢ The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
A good option but does not mention that their problem of declining profits would be solved or not
"¢ There are no safer ways in which Airline A can increase revenues.
We know about just one particular way, others are irrelevant to the topic
"¢ Passenger safety is less important than increasing revenue.
Airline never mentions this. Out of scope as we cannot substantiate this statement from the given text
Airline is having problems with the rising fuel costs --> Less profits
Thus to counteract revenue problems --> Standing-room Seats (this requires approval)

Prethink the answer: Airline has concluded that somehow this "weird and risky proposal" will be an economical one and will help them to overcome the problem of declining profits.

Between A & C, only A seems to go a step further in proving that more revenue can be used to target the problem of "declining profits".

[spoiler]Answer seems to be: A[/spoiler]

Regards,
Vivek
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by vinay1983 » Mon Sep 30, 2013 6:05 am
rakeshd347 wrote:Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract
declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by
creating several standing room only "seats" in which passengers would be propped against a padded backboard
and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented
without prior approval by the Federal Aviation Administration. The above statements, if true, indicate that Airline
A has made which of the following conclusions?
"¢ The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats
meet safety standards.
"¢ The Federal Aviation Administration will approve Airline A's specific proposal.
"¢ The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
"¢ There are no safer ways in which Airline A can increase revenues.
"¢ Passenger safety is less important than increasing revenue.

OA to follow soon.
I think OA should be A comes close to whatever has been said in the prompt and seems relevant too. Is this from MGMAT?
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!
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by VivianKerr » Mon Sep 30, 2013 10:23 am
Here's how I'd break it down:

Premise: jet fuel $$, airlines was more $$ to stop :-(
"A" solution: more tickets sold, but needs FDA :-)

Question Rephrase: What's "A"'s conclusion?

Prediction: Since it's a "proposal" to fix a lack of $$, "A" is assuming that this plan will give them MORE $$$ because (1) people will buy these standing-seats, and (2) the FDA will approve it. Basically, I'm looking for something that helps Airline A succeed.

(A)Yes, helps them succeed
(B) Yes, helps them succeed
(C) Yes, helps them succeed
(D) No, this is not relevant
(E) No, this is not relevant

Between (A), (B), and (C), only (A) address both halves of the airline's plan: the $$ from the seats, and the FDA approval. (B) only focuses on the FDA, and (C) only focuses on the $$.

(A) makes the most sense for their conclusion.
Vivian Kerr
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Former Kaplan and Grockit instructor, freelance GMAT content creator, now offering affordable, effective, Skype-tutoring for the GMAT at $150/hr. Contact: [email protected]

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