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

 It is currently 27 Oct 2016, 00:20

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Community activist: If Morganville wants to keep its central

Author Message
TAGS:

### Hide Tags

Senior Manager
Joined: 17 Jul 2008
Posts: 250
Followers: 4

Kudos [?]: 286 [2] , given: 29

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

### Show Tags

23 Jul 2009, 21:44
2
KUDOS
19
This post was
BOOKMARKED
00:00

Difficulty:

45% (medium)

Question Stats:

65% (02:14) correct 35% (01:26) wrong based on 1142 sessions

### HideShow timer Statistics

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?
[Reveal] Spoiler: OA

_________________

Please give kudos if you enjoy the explanations that I have given. Thanks

Manager
Joined: 14 Jun 2009
Posts: 96
Followers: 2

Kudos [?]: 19 [0], given: 9

### Show Tags

23 Jul 2009, 21:57
1
This post was
BOOKMARKED
A,D and E>> are irrelevant...

b/w B and C

will go with option C, since it looks at another unexplored area of the stats given by the activist, so the answer to this question will help evaluate the activist's reasoning.
Senior Manager
Joined: 26 May 2009
Posts: 318
Followers: 2

Kudos [?]: 51 [0], given: 13

### Show Tags

26 Jul 2009, 16:54
IMO C.
Senior Manager
Joined: 11 Dec 2008
Posts: 482
Location: United States
GMAT 1: 760 Q49 V44
GPA: 3.9
Followers: 39

Kudos [?]: 192 [3] , given: 12

### Show Tags

26 Jul 2009, 20:00
3
KUDOS
1
This post was
BOOKMARKED
I pick C. The author suggests that the opening of the saveall store causes bankruptcies to occur in 25% of the stores in the shopping district. if we were to know what the percentage of stores went bankrupt, independent of the effects of saveall, it would shed insight on whether or not saveall contributes to the effect, and thus help us evaluate the author's reasoning.
Senior Manager
Joined: 20 Mar 2008
Posts: 454
Followers: 1

Kudos [?]: 115 [0], given: 5

### Show Tags

26 Jul 2009, 20:32
B: for me.

C has a very strong case, but I think B calls out a more fundamental issue than C does.

B:
Currently, do people shop in the central shopping district? If yes, then yeah saveall will cause a major problem. But if people do not, then saveall's effects on past bankruptcies as a reason to not allow them to open shop does not hold much water.

And if people, do shop in the central shopping district then allowing saveall to open shop can definitely play a big part in future bankruptcies.

C: The key piece of info missing here is SaveAll's effect on these bankruptcies. Even if we were to know how many shops go bankrupt during a five-year period, it has no correlation to SaveAll's effects.

Between, B & C --> B sounds more reasonable to me.
Senior Manager
Joined: 11 Dec 2008
Posts: 482
Location: United States
GMAT 1: 760 Q49 V44
GPA: 3.9
Followers: 39

Kudos [?]: 192 [4] , given: 12

### Show Tags

27 Jul 2009, 13:20
4
KUDOS
Jivana wrote:
B: for me.

C has a very strong case, but I think B calls out a more fundamental issue than C does.

B:
Currently, do people shop in the central shopping district? If yes, then yeah saveall will cause a major problem. But if people do not, then saveall's effects on past bankruptcies as a reason to not allow them to open shop does not hold much water.

And if people, do shop in the central shopping district then allowing saveall to open shop can definitely play a big part in future bankruptcies.

C: The key piece of info missing here is SaveAll's effect on these bankruptcies. Even if we were to know how many shops go bankrupt during a five-year period, it has no correlation to SaveAll's effects.

Between, B & C --> B sounds more reasonable to me.

The problem with B is that even if you know whether most people in Morganville shop in the central district, Saveall might still cause bankruptcies because everyone will move to Saveall. If you knew whether most people in OTHER districts used to shop in the central district, before Saveall was opened, that may help.

I think you're missing what C states.
25% of shops go bankrupt after Saveall opens. If 5% go bankrupt during a five-year period, Saveall is "correlated" with a 20% increase in bankruptcies. If 25% of shops go bankrupt, then there's no real correlation between Saveall and an increase in bankruptcies. Thus knowing the "a priori" percentage of bankruptcies would help in evaluating whether or not Saveall contributes to such an effect.
Intern
Joined: 04 Apr 2011
Posts: 3
Followers: 0

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

### Show Tags

18 Apr 2011, 18:36
1
This post was
BOOKMARKED
bipolarbear wrote:
Jivana wrote:
B: for me.

C has a very strong case, but I think B calls out a more fundamental issue than C does.

B:
Currently, do people shop in the central shopping district? If yes, then yeah saveall will cause a major problem. But if people do not, then saveall's effects on past bankruptcies as a reason to not allow them to open shop does not hold much water.

And if people, do shop in the central shopping district then allowing saveall to open shop can definitely play a big part in future bankruptcies.

C: The key piece of info missing here is SaveAll's effect on these bankruptcies. Even if we were to know how many shops go bankrupt during a five-year period, it has no correlation to SaveAll's effects.

Between, B & C --> B sounds more reasonable to me.

The problem with B is that even if you know whether most people in Morganville shop in the central district, Saveall might still cause bankruptcies because everyone will move to Saveall. If you knew whether most people in OTHER districts used to shop in the central district, before Saveall was opened, that may help.

I think you're missing what C states.
25% of shops go bankrupt after Saveall opens. If 5% go bankrupt during a five-year period, Saveall is "correlated" with a 20% increase in bankruptcies. If 25% of shops go bankrupt, then there's no real correlation between Saveall and an increase in bankruptcies. Thus knowing the "a priori" percentage of bankruptcies would help in evaluating whether or not Saveall contributes to such an effect.

B is correct. What if people currently don't buy departmental items from Morganville (shopping might be currently healthy due to jewellery, electronics etc. we don't know about it). But, it will atleast address the basic check point.
C is so generic. It doesn't confine the search to towns that are affected by SaveAll alone. Bankruptcy could be due to several reason.
Senior Manager
Joined: 12 Oct 2009
Posts: 267
Followers: 4

Kudos [?]: 138 [0], given: 4

### Show Tags

19 Apr 2011, 06:09
C
Manager
Joined: 25 Aug 2008
Posts: 230
Location: India
WE 1: 3.75 IT
WE 2: 1.0 IT
Followers: 2

Kudos [?]: 53 [0], given: 5

### Show Tags

19 Apr 2011, 06:39
I selected B, but also agree to the explanation provided for C. As of now confused..
What is OA??
_________________

Cheers,
Varun

If you like my post, give me KUDOS!!

Manager
Status: ==GMAT Ninja==
Joined: 08 Jan 2011
Posts: 247
Schools: ISB, IIMA ,SP Jain , XLRI
WE 1: Aditya Birla Group (sales)
WE 2: Saint Gobain Group (sales)
Followers: 5

Kudos [?]: 73 [0], given: 46

### Show Tags

17 Jun 2011, 13:30
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?

OA after some explanations...[code][/code]

This question was really a 750 level Question
because it looks so simple to answer B (as most of us . at least 50% has given in their answers)
but when we dig deeper it comes out to be C........
i also fell in the trap....
dont know what would be my reply if this kind of question appears in my real GMAT
_________________

WarLocK
_____________________________________________________________________________
The War is oNNNNNNNNNNNNN for 720+
see my Test exp here http://gmatclub.com/forum/my-test-experience-111610.html
do not hesitate me giving kudos if you like my post.

Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2021
Followers: 159

Kudos [?]: 1627 [0], given: 376

### Show Tags

17 Jun 2011, 13:52
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?

OA after some explanations...[code][/code]

I think there are few assumptions in this passage; Considering those assumptions.

B makes more sense:

Hypothetical but a possible case:
If 100 people are in the town and they are all shopping outside the town already, then how is opening of SaveAll affect central shopping district, which is in the town?
If 90 people shop in town, then there is a possibility that Saveall causes the trouble.
Thus, two different answers to this question is helping us gauge the argument.

C: Suppose C evaluation says 100% suffered bankruptcy. How does it affect Morganville? The evaluation will be as good as the premise.
Maybe all the other towns had dilapidated stores and in their town OR the stores sold rotten goods. Thus, it was not the discount that attracted the consumers, but its quality and aesthetic.
And Morganvilles' stores can be very different from the other towns stores.

Ans: "B"
_________________
Manager
Status: ==GMAT Ninja==
Joined: 08 Jan 2011
Posts: 247
Schools: ISB, IIMA ,SP Jain , XLRI
WE 1: Aditya Birla Group (sales)
WE 2: Saint Gobain Group (sales)
Followers: 5

Kudos [?]: 73 [1] , given: 46

### Show Tags

17 Jun 2011, 14:10
1
KUDOS
fluke wrote:
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?

OA after some explanations...[code][/code]

I think there are few assumptions in this passage; Considering those assumptions.

B makes more sense:

Hypothetical but a possible case:
If 100 people are in the town and they are all shopping outside the town already, then how is opening of SaveAll affect central shopping district, which is in the town?
If 90 people shop in town, then there is a possibility that Saveall causes the trouble.
Thus, two different answers to this question is helping us gauge the argument.

C: Suppose C evaluation says 100% suffered bankruptcy. How does it affect Morganville? The evaluation will be as good as the premise.
Maybe all the other towns had dilapidated stores and in their town OR the stores sold rotten goods. Thus, it was not the discount that attracted the consumers, but its quality and aesthetic.
And Morganvilles' stores can be very different from the other towns stores.

Ans: "B"

dear fluke
its an og question
_________________

WarLocK
_____________________________________________________________________________
The War is oNNNNNNNNNNNNN for 720+
see my Test exp here http://gmatclub.com/forum/my-test-experience-111610.html
do not hesitate me giving kudos if you like my post.

Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2021
Followers: 159

Kudos [?]: 1627 [1] , given: 376

### Show Tags

17 Jun 2011, 16:32
1
KUDOS
1
This post was
BOOKMARKED
Warlock007 wrote:
dear fluke
its an og question

Thanks Warlock007:

I ignored the usage of article "a" and the usage of simple present tense(which conveys facts). "C" does make sense.

C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

I considered it "the" -- the 5 year period in which SaveAll was at their backyard.
C actually says: in any given 5 year period without SaveAll at the backyard, how many of them go bankrupt.

Arrrrghhhhhhhhh!!!!!
_________________
Director
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 707
Followers: 5

Kudos [?]: 159 [3] , given: 37

### Show Tags

17 Jun 2011, 17:49
3
KUDOS
C it is.

Apply variance test

To apply the variance test , you should choose polar opposite answers:

In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

Ans 1 : More than a quarter (25%) : Well that means SaveAll does not cause bankruptcies. Since it is happening in towns with Healthy shopping districts, it must be normal for a quarter to go bankrupt in 5 year period.

Ans 2 : Less than a quarter(25 %) : That means SaveAll does cause some stores to go bankrupt.

Crick
Manager
Status: ==GMAT Ninja==
Joined: 08 Jan 2011
Posts: 247
Schools: ISB, IIMA ,SP Jain , XLRI
WE 1: Aditya Birla Group (sales)
WE 2: Saint Gobain Group (sales)
Followers: 5

Kudos [?]: 73 [0], given: 46

### Show Tags

18 Jun 2011, 03:28
fluke wrote:
Warlock007 wrote:
dear fluke
its an og question

Thanks Warlock007:

I ignored the usage of article "a" and the usage of simple present tense(which conveys facts). "C" does make sense.

C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

I considered it "the" -- the 5 year period in which SaveAll was at their backyard.
C actually says: in any given 5 year period without SaveAll at the backyard, how many of them go bankrupt.

Arrrrghhhhhhhhh!!!!!

Hey Fluke
I think this kind of traps make it tough cracking 700+ on gmat.....
_________________

WarLocK
_____________________________________________________________________________
The War is oNNNNNNNNNNNNN for 720+
see my Test exp here http://gmatclub.com/forum/my-test-experience-111610.html
do not hesitate me giving kudos if you like my post.

Manager
Affiliations: IIBA
Joined: 04 Sep 2010
Posts: 60
Location: India
Schools: HBS, Stanford, Stern, Insead, ISB, Wharton, Columbia
WE 1: Information Technology (Banking and Financial Services)
Followers: 2

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

### Show Tags

16 Dec 2011, 00:19
Agree with the justification for C but still B perplexes me.

Applying variance test for B

Ans 1: Yes (say 90%) - In this case opening of SaveAll may attract the customers from stores in Morganville(90%) and hence would lead to their bankruptcies.

Ans 2: No( say 10%) - Stores are already surviving with only 10% of customers. In this case opening of SaveAll would not affect much. I guess this is the point which most of us have considered while opting for B.

Now, when I pen down, I wonder what if SaveAll would attract those 10% customers and that itself is sufficient enough for stores to go bankrupt.

crick20002002 wrote:
C it is.

Apply variance test

To apply the variance test , you should choose polar opposite answers:

In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

Ans 1 : More than a quarter (25%) : Well that means SaveAll does not cause bankruptcies. Since it is happening in towns with Healthy shopping districts, it must be normal for a quarter to go bankrupt in 5 year period.

Ans 2 : Less than a quarter(25 %) : That means SaveAll does cause some stores to go bankrupt.

Crick

_________________

~soaringAlone
~Live fast, die young and leave a marketable corpse behind !!

BSchool Forum Moderator
Status: Flying over the cloud!
Joined: 17 Aug 2011
Posts: 913
Location: Viet Nam
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 71

Kudos [?]: 567 [0], given: 44

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

### Show Tags

16 Dec 2011, 00:38
C
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Director
Status: Enjoying the GMAT journey....
Joined: 26 Aug 2011
Posts: 735
Location: India
GMAT 1: 620 Q49 V24
Followers: 70

Kudos [?]: 485 [0], given: 264

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

### Show Tags

16 Dec 2011, 00:56
+1 C
_________________

Fire the final bullet only when you are constantly hitting the Bull's eye, till then KEEP PRACTICING.

A WAY TO INCREASE FROM QUANT 35-40 TO 47 : http://gmatclub.com/forum/a-way-to-increase-from-q35-40-to-q-138750.html

Q 47/48 To Q 50 + http://gmatclub.com/forum/the-final-climb-quest-for-q-50-from-q47-129441.html#p1064367

Three good RC strategies http://gmatclub.com/forum/three-different-strategies-for-attacking-rc-127287.html

Senior Manager
Joined: 13 Aug 2010
Posts: 314
Followers: 1

Kudos [?]: 20 [0], given: 1

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

### Show Tags

16 Dec 2011, 01:03
well the the question here is does SaveAll causes other store to close or not...... in the first 5 year.

then probably the first thing to analyze is in normal conditions how many stores close with out the SaveAll intervention.

+ 1 For C.
Manager
Joined: 07 Aug 2011
Posts: 186
Location: United States
GMAT 1: 690 Q48 V37
Followers: 3

Kudos [?]: 23 [0], given: 6

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

### Show Tags

26 Dec 2011, 11:55
my pick is C
Re: Community activist: If Morganville wants to keep its central   [#permalink] 26 Dec 2011, 11:55

Go to page    1   2    Next  [ 33 posts ]

Similar topics Replies Last post
Similar
Topics:
4 Morganville wants to keep its central shopping 4 29 Jul 2014, 08:34
7 Community activist: If Morganville wants to keep its central 6 22 Jul 2012, 08:48
Community activist: If Morganville wants to keep its central 6 03 Oct 2010, 10:18
1 Community activist: If Morganville wants to keep its central 11 05 Sep 2009, 09:33
Community activist: If Morganville wants to keep its central 2 29 Sep 2007, 13:23
Display posts from previous: Sort by

# Community activist: If Morganville wants to keep its central

 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®.