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# Community activist: If Morganville wants to keep its central

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Re: Community activist: If Morganville wants to keep its central [#permalink]

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17 Feb 2012, 11:15
Can someone please explain how to get rid of (b)? I understand the logic for (c) but (b) also makes sense to me.
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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18 Dec 2012, 19:01
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teal wrote:
Can someone please explain how to get rid of (b)? I understand the logic for (c) but (b) also makes sense to me.

I think this is one of those "hairy" CR questions that boils down to 50/50 on the GMAT. I answered this incorrectly BTW.

What I took away from this question is that C is the better choice, because it will either negate the importance of SaveAll entering the market or not.

Take a look at C again:

Let's suppose that after reviewing the proportion of stores that go out of business in other cities, the aggregate data indicates that the 25% bankruptcy rate is very common. Perhaps then, SaveAll's entry in the market is a non issue. But if the 25% figure is not consistent among the cities studied, then maybe SaveAll does have an impact when it enters the market.

That is my reasoning, can anyone see where I could have made a mistake?
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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05 Jan 2014, 09:25
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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16 Oct 2014, 14:19
Hi @e-gmat,
I wanted to ask one thing - here I am stuck why option B is incorrect and C correct. According to B, Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville? So if currently people are doing online shopping, then opening of SaveAll would not affect, else it would affect. Here, variance test is applied and successful. Also please tell me how is option C is correct?
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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19 Oct 2014, 06:29
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HI

IMO If we apply variance test on Option B

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

YES : Say 70% of the residents do there shopping at stores in M. So after opening of the SaveAll stores can there be a impact ? Yes there can be a impact on stores of M
NO : Say 30% of the residents do there shopping at stores in M. So after opening of the SaveAll stores can there be a impact ? Yes there can be a impact on stores of M as these 30% can start buying from SaveAll stores.
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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14 Jul 2015, 13:04
I chose C because I felt it would evaluate the scenario more closely and it is the right answer.
But I'm bit confused why B is wrong. It is possible that If poeple used to go for shopping at city stores then they may shift to new one. or It is also possible that if city stores are of textiles and mall is of electric appliances(I mean both are different) then it's presence does not affect anymore.
Is my thought process in correct direction.
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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16 Oct 2015, 02:37
In this qsn,the key underlying assumptions lead us to the correct answer choice which is C.
The assumptions which underline the activist's reasoning are:
a) what happened with other small towns will be replicated in Morganville with opening of Save All
b) Like Morganville , other towns that have been compared also had a healthy shopping district when Save All opened
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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19 Jan 2016, 13:41
Hoops, it is a tough and tricky one.
M is healthy town, but it shall prevent central shops from bankrupting by closing S.
generally speaking, towns' central shops will suffer bankrupting when S opened.
How about a healthy town, such as M?
Will it fall into general scenarios or a special one?

Or we can use "Variance Test":
In towns with healthy central shopping districts, stores in those districts don't suffer bankruptcy during a typical five-year period.

Even with this tool, it is a tough. As we may not notice that the subtle adjectives "healthy" plays such an important role.
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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23 Jan 2016, 23:29
I feel your reasoning is a little too complicated. Let us try a simpler approach. The argument suggests it is because of Save all that the stores in the town suffer bankruptcies and this has been a trend in these five year period. In order to analyse the credibility behind this statement we have to analyse weather the bankruptcies are a coincidence, a natural phenomenon, or is it because of the opening of Save all. As suggested in "C" if we can find out what proportion of stores in a healthy shopping district suffer bankruptcy in a typical five year period it will help us to asses weather Save all is responsible for the same.
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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04 Feb 2016, 13:41
Hi Aryama,

as much as your argument is strong enough for C and I agree with it 100%, I still find it hard to refute B. As many of my predecessors already mentioned, B is very strong as well. In this situation, are we really suppose to somehow weigh which one is a bit stronger?

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Community activist: If Morganville wants to keep its central [#permalink]

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05 May 2016, 02:14
perfectstranger 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?

Premise ==> you open saveall store, other stores (1/4) goes bankrupt within 5 yerars. So we have to evaluate cause and effect relationship here.

prethinking:

anything that establishes that there is no relationship after all.
or customers of both places are different so there is no overlap of consumption.
Or no overlapping of product or services.

B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville? => even if they go outside, it doesn't help here. May be consumers of central shopping district are not from the town. We can't say anything about the conclusion.

C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period? -> if we have the number, we can analyze

bankruptcy in healthy central shopping districts ~, <,> bankruptcy in healthy central shopping districts
so that helps.

D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn form Morganville? - Not relevant.

E. Do newly opened SaveAll stores ever lose money during their first five years of operation? => we don't know anything about their establishment years.
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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27 Jul 2016, 19:11
Conclusion - " Correlation drawn between opening of SaveAll discount store causing bankruptcies of > 25% store in the shopping district of a "small" town"
Option A - Irrelevant
Option B - Keep
Option C - Keep
Option D - Irrelevant
Option E - Irelevant

Applying variance test on option B and option C

Option B - Yes --> With the opening of SaveAll discount stores some of the buyers might switch to those discount store. While sales may be hurt in the shopping district that may/may not cause bankruptcy.
No --> This can have multiple scenarios. Even if lesser percentage of the population do their shopping here opening of the discount store may cause bankruptcy. In the event if there are only high-end brands in the shopping district then in that case there might be no bankruptcy.

Option C - >25% --> In this case there might some other factors in place instead of bankruptcy.
25%<= --> In this case SaveAll discount stores do cause bankruptcy in the shopping district.

I choose C.
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Re: Community activist: If Morganville wants to keep its central [#permalink]

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17 Oct 2016, 09:22
Went for C. It actually attacks the reason given in the argument. If a high proportion of stores bankrupt in a 5 year period without SaveAll, then it weakens the argument that SaveAll is responsible for the quarter of the bankruptcies of the stores. On the other hand, if a low proportion of stores bankrupt in a 5 year period without SaveAll, then it strengthens the argument that SaveAll is responsible for the quarter of the bankruptcies of the stores.
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Re: Community activist: If Morganville wants to keep its central   [#permalink] 17 Oct 2016, 09:22

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