Find all School-related info fast with the new School-Specific MBA Forum

It is currently 29 Aug 2014, 20:17

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

According to the Tristate Transportation Authority, making

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
User avatar
Joined: 02 Sep 2006
Posts: 256
Followers: 1

Kudos [?]: 11 [0], given: 0

GMAT Tests User
According to the Tristate Transportation Authority, making [#permalink] New post 06 Apr 2007, 01:39
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

75% (02:28) correct 25% (01:46) wrong based on 99 sessions
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.

Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?

a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.

b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.

c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.

d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.

e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.
[Reveal] Spoiler: OA

Last edited by Zarrolou on 07 Aug 2013, 09:51, edited 1 time in total.
Added OA.
Senior Manager
Senior Manager
avatar
Joined: 27 Jul 2006
Posts: 299
Followers: 1

Kudos [?]: 6 [0], given: 0

GMAT Tests User
 [#permalink] New post 06 Apr 2007, 03:09
the only answer that makes sense is D.

20 percent of the drivers actually stopped paying tolls altogether and the result was that their new route then was improved.

they recieved benefit from the raising of the tolls.
Senior Manager
Senior Manager
avatar
Joined: 11 Feb 2007
Posts: 360
Followers: 1

Kudos [?]: 16 [0], given: 0

GMAT Tests User
 [#permalink] New post 06 Apr 2007, 05:58
D.

In the long run (over the course of five yrs), 20% of ppl not using it and switching to an alternative would hurt the revenue and thus would make the authority's plan to finance by increasing bridge tolls ineffective.

:)
Manager
Manager
avatar
Joined: 26 Feb 2007
Posts: 115
Followers: 1

Kudos [?]: 1 [0], given: 0

 [#permalink] New post 06 Apr 2007, 06:32
D.
Manager
Manager
User avatar
Joined: 07 Feb 2007
Posts: 212
Followers: 2

Kudos [?]: 7 [0], given: 0

GMAT Tests User
Re: CR: Tristate Transportation Authority [#permalink] New post 06 Apr 2007, 19:15
Vote D
Manager
Manager
avatar
Joined: 20 Nov 2006
Posts: 215
Followers: 1

Kudos [?]: 6 [0], given: 0

GMAT Tests User
 [#permalink] New post 06 Apr 2007, 20:06
Sure D.

The alternative option available to commuters make the authorities plan a failure.
Senior Manager
Senior Manager
User avatar
Joined: 02 Sep 2006
Posts: 256
Followers: 1

Kudos [?]: 11 [0], given: 0

GMAT Tests User
 [#permalink] New post 10 Apr 2007, 04:37
OA is D
Manager
Manager
avatar
Joined: 15 Apr 2012
Posts: 95
Location: Bangladesh
Concentration: Technology, Entrepreneurship
GMAT 1: 460 Q38 V17
GMAT 2: Q V
GPA: 3.56
Followers: 0

Kudos [?]: 10 [0], given: 134

Re: According to the Tristate Transportation Authority, making [#permalink] New post 07 Jul 2012, 11:30
faifai0714 wrote:
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.

Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?

a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.

b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.

c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.

d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.

e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.


Stuck with C and D..can anyone explain why C is wrong? Thanks
Senior Manager
Senior Manager
User avatar
Joined: 15 Sep 2009
Posts: 271
GMAT 1: 750 Q V
Followers: 8

Kudos [?]: 52 [0], given: 6

Re: According to the Tristate Transportation Authority, making [#permalink] New post 08 Jul 2012, 19:37
Straight D.

The Authority is looking at a massive diminution of projected revenues to the tune of at least 20%, thanks to the diversion option available to drivers looking at avoiding the new tolls.

Cheers,
Der alte Fritz.

Posted from my mobile device Image

Posted from my mobile device Image
_________________

+1 Kudos me - I'm half Irish, half Prussian.

1 KUDOS received
Manager
Manager
avatar
Joined: 04 Nov 2012
Posts: 70
Schools: NTU '16 (A)
Followers: 0

Kudos [?]: 18 [1] , given: 39

According to the Tristate Transportation Authority, making [#permalink] New post 07 Aug 2013, 09:49
1
This post received
KUDOS
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two high-way bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority’s plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no
benefit.

. Which of the following, if true, would cast the most doubt on the effectiveness of the authority’s plan to
finance the proposed improvements by increasing bridge tolls?
(A) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.
(B) Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.
(C) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.
(D) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.
(E) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.


Choice D: If 20% shifted the last time and even if we do assume that this process will happen this time, we are only talking about 20% of the population. 80% of the people might well go ahead and use the toll bridge.Why is this taken to be the correct answer?

If we compare this with choice C: Many commuters will buy tokens in advance. Now we do not what many is. It could be 5% it could be 80% or whatever. And also we do not know for how long these coupons will last. Its possible that the commuters buy them for the entire duration of 5 years


why pick c over d?
both need similar levels of assumptions to weaken

Last edited by Zarrolou on 07 Aug 2013, 09:52, edited 1 time in total.
Merging similar topics.
Manager
Manager
User avatar
Joined: 10 Apr 2013
Posts: 124
Followers: 2

Kudos [?]: 17 [0], given: 17

Re: According to the Tristate Transportation Authority, making [#permalink] New post 07 Aug 2013, 10:15
Hi 12bhang,

I also initially opted for C but guess D is the correct answer.

You did rightly analyse the cases in C & D.

However, as in Option C, buying tokens in advance is in no way going to benefit(contrary to being unfairly treated...weakener) the drivers. Using the alternate path, as in option D, although by 20% of the drivers will certainly benefit atleast some of the drivers.


Regards

Argha
1 KUDOS received
Intern
Intern
avatar
Joined: 21 Jun 2013
Posts: 15
Followers: 0

Kudos [?]: 10 [1] , given: 0

Re: According to the Tristate Transportation Authority, making [#permalink] New post 07 Aug 2013, 13:20
1
This post received
KUDOS
12bhang wrote:
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two high-way bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority’s plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no
benefit.

. Which of the following, if true, would cast the most doubt on the effectiveness of the authority’s plan to
finance the proposed improvements by increasing bridge tolls?
(A) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.
(B) Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.
(C) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.
(D) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.
(E) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.


Choice D: If 20% shifted the last time and even if we do assume that this process will happen this time, we are only talking about 20% of the population. 80% of the people might well go ahead and use the toll bridge.Why is this taken to be the correct answer?

If we compare this with choice C: Many commuters will buy tokens in advance. Now we do not what many is. It could be 5% it could be 80% or whatever. And also we do not know for how long these coupons will last. Its possible that the commuters buy them for the entire duration of 5 years


why pick c over d?
both need similar levels of assumptions to weaken


Answer choice C makes mention of some commuters buying tokens in advance to limit the effect of the increase. This means that the authority is starved of some revenue; however, the time horizon in question is over 5 years. Even if every single consumers bought some number of tokens in advance, it's very unlikely that everyone would buy 5 years worth of tokens. And, even if every consumer did buy 5 year's worth of tokens, the authority will still enjoy 5 year's worth of revenue at the original toll rate. C doesn't fundamentally undermine the financing plan.

On the other hand, D remarks on a situation where, following a previous rate increase a full 20% of drivers switched routes (presumably forever). D further mentions that the alternate route in question has since been improved, implying that it is now suitable for more drivers and/or a more attractive alternative. If the authority increases tolls, then it stands to reason that some number of drivers, possibly more than 20%, will switch to the now improved alternate route. And, unlike the token hoarders above, this switch will likely be permanent and that revenue will be lost to the authority.

For that reason, D is a stronger answer because it offers a more systemic threat to the financing arrangement, given the 5 year financing described in the passage.
Director
Director
User avatar
Joined: 14 Dec 2012
Posts: 837
Location: India
Concentration: Finance, Real Estate
GMAT 1: 640 Q49 V29
GMAT 2: 670 Q50 V29
GMAT 3: 620 Q49 V26
GMAT 4: 700 Q50 V34
GPA: 3.6
Followers: 37

Kudos [?]: 567 [0], given: 197

GMAT ToolKit User
Re: According to the Tristate Transportation Authority, making [#permalink] New post 07 Aug 2013, 16:34
12bhang wrote:
why pick c over d?
both need similar levels of assumptions to weaken


IMO your understanding is perfectly fine.

go through the below link in order to get the takeaway from the question .

http://www.manhattangmat.com/forums/acc ... t6915.html

if further discussion required surely post again.

hope this helps
_________________

When you want to succeed as bad as you want to breathe ...then you will be successfull....

GIVE VALUE TO OFFICIAL QUESTIONS...



GMAT RCs VOCABULARY LIST: vocabulary-list-for-gmat-reading-comprehension-155228.html
learn AWA writing techniques while watching video : http://www.gmatprepnow.com/module/gmat- ... assessment
: http://www.youtube.com/watch?v=APt9ITygGss

Intern
Intern
avatar
Joined: 23 Jul 2013
Posts: 25
Followers: 0

Kudos [?]: 11 [0], given: 27

Re: According to the Tristate Transportation Authority, making [#permalink] New post 08 Aug 2013, 13:55
faifai0714 wrote:
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.

Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?

a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised. irrelevant to success of raising funds

b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines. irrelevant to raising funds

c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase. hmmm?

d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved. hmmm?

e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase. irrelevant


Between C & D, think of income when comparing the answer choices. Which one will lead to the least amount of revenue generated? C-the revenue will remain the same initially, but will eventually increase. D-a 20% drop in toll fees is a permanent drop. Total Revenue[future + present] (C) > Revenue [future + present] (D)
Since Rev D is less, the answer will be D

Please give me kudos :lol:
Manager
Manager
avatar
Joined: 23 Jan 2013
Posts: 81
Concentration: Technology, Other
Followers: 1

Kudos [?]: 5 [0], given: 11

GMAT ToolKit User CAT Tests
Re: According to the Tristate Transportation Authority, making [#permalink] New post 18 Sep 2013, 17:42
Plan : To charge a toll on commuters on the road connecting the rail line .
Objective : Raise funds for the rail line .

When would the plan be weakened ?
If we can show if funds cannot be raised some how .
a) Less people travel that route

And OA D says it all !!
Re: According to the Tristate Transportation Authority, making   [#permalink] 18 Sep 2013, 17:42
    Similar topics Author Replies Last post
Similar
Topics:
According to the Tristate Transportation Authority, making 12bhang 0 07 Aug 2013, 09:49
According to the Tristate Transportation Authority nikhil.jones.s 0 10 Jul 2013, 03:15
3 Experts publish their posts in the topic According to the Tristate Transportation Authority, making CharuKapoor 6 22 Apr 2013, 06:20
1 In recent years, the Holdsville Transportation Authority GetThisDone 5 28 Apr 2012, 21:42
3 Experts publish their posts in the topic According to the Tristate Transportation Authority, making garimavyas 16 16 May 2011, 09:54
Display posts from previous: Sort by

According to the Tristate Transportation Authority, making

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.