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Consumers planning to buy recreational equipment tend to buy

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Senior Manager
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Consumers planning to buy recreational equipment tend to buy [#permalink] New post 29 Oct 2007, 01:41
00:00
A
B
C
D
E

Difficulty:

  5% (low)

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0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Consumers planning to buy recreational equipment tend to buy higher quality,
more expensive equipment when the economy is strong than when it is
weak. Hill and Dale is a business that sells high-quality, expensive camping
and hiking equipment in Boravia. Although all the signs are that Boravia’s
economy is now entering a period of sustained strength, the managers
of the business do not expect a substantial increase in sales.
Which of the following, if true, would provide the strongest
justification for the managers’ judgment?

A. A significant proportion of Hill and Dale’s sales are made to
customers who enter the store in order to buy one particular
item but, once there, find other items to buy as well.
B. In Boravia when the economy is strong, those who might
otherwise go camping tend to take vacations overseas.
C. The economic upturn is likely to allow Boravia’s national
parks, where most of the camping and hiking is
done, to receive extra funding to improve their visitor facilities.
D. Advances in materials technology have led to the
development of hiking and camping equipment that
is more comfortable and lightweight than before.
E. Many people in Boravia not only are committed to
preserving the country’s wilderness areas but also
are interested in spending some time in them.
Director
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Re: CR: Consumers [#permalink] New post 29 Oct 2007, 04:24
sidbidus wrote:
Consumers planning to buy recreational equipment tend to buy higher quality,
more expensive equipment when the economy is strong than when it is
weak. Hill and Dale is a business that sells high-quality, expensive camping
and hiking equipment in Boravia. Although all the signs are that Boravia’s
economy is now entering a period of sustained strength, the managers
of the business do not expect a substantial increase in sales.
Which of the following, if true, would provide the strongest
justification for the managers’ judgment?

A. A significant proportion of Hill and Dale’s sales are made to
customers who enter the store in order to buy one particular
item but, once there, find other items to buy as well.
B. In Boravia when the economy is strong, those who might
otherwise go camping tend to take vacations overseas.
C. The economic upturn is likely to allow Boravia’s national
parks, where most of the camping and hiking is
done, to receive extra funding to improve their visitor facilities.
D. Advances in materials technology have led to the
development of hiking and camping equipment that
is more comfortable and lightweight than before.
E. Many people in Boravia not only are committed to
preserving the country’s wilderness areas but also
are interested in spending some time in them.


I pick B; it provides a valid reason to explain why sales may not increase even though the economy is expected to strengthen.
Manager
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 [#permalink] New post 29 Oct 2007, 07:01
straight B...
Manager
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Re: CR: Consumers [#permalink] New post 29 Oct 2007, 07:35
Which of the following, if true, would provide the strongest
justification for the managers’ judgment?

A. A significant proportion of Hill and Dale’s sales are made to
customers who enter the store in order to buy one particular
item but, once there, find other items to buy as well.
[Weakens manager's judgement, since customers can buy more expensive versions of whatever they are buying, increasing sales]

B. In Boravia when the economy is strong, those who might
otherwise go camping tend to take vacations overseas.
[ I think this is the correct answer. It effectively decreases the pool of people who plan to buy camping equipment, thus decreasing sales]

C. The economic upturn is likely to allow Boravia’s national
parks, where most of the camping and hiking is
done, to receive extra funding to improve their visitor facilities.
[This weakens the managers judgement, improved parks = more people camping = more sales]

D. Advances in materials technology have led to the
development of hiking and camping equipment that
is more comfortable and lightweight than before.
[ Not relevant to the argument]

E. Many people in Boravia not only are committed to
preserving the country’s wilderness areas but also
are interested in spending some time in them.
[ Not relevant to the argument]
VP
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 [#permalink] New post 29 Oct 2007, 07:55
kalpvriksha14 wrote:
straight B...


no 2 wrds abt it
Current Student
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Location: Berkeley, CA
Schools: Berkeley-Haas MBA
WE 1: Investment Management (fund of funds)
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 [#permalink] New post 29 Oct 2007, 09:31
dwivedys wrote:
kalpvriksha14 wrote:
straight B...


no 2 wrds abt it


absolutely.
Senior Manager
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 [#permalink] New post 29 Oct 2007, 09:34
The OA is (C)......can anyone explain how???
VP
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 [#permalink] New post 29 Oct 2007, 09:49
sidbidus wrote:
The OA is (C)......can anyone explain how???


I am reasonably sure OA can't be C because it would necessitate taking an assumption which is not good in tackling CR questions.

Refer below
http://www.gmatclub.com/forum/t40074
Senior Manager
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Re: CR: Consumers [#permalink] New post 29 Oct 2007, 14:30
One more B!!
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Re: CR: Consumers [#permalink] New post 29 Oct 2007, 15:28
sidbidus wrote:
Consumers planning to buy recreational equipment tend to buy higher quality,
more expensive equipment when the economy is strong than when it is
weak. Hill and Dale is a business that sells high-quality, expensive camping
and hiking equipment in Boravia. Although all the signs are that Boravia’s
economy is now entering a period of sustained strength, the managers
of the business do not expect a substantial increase in sales.
Which of the following, if true, would provide the strongest
justification for the managers’ judgment?

A. A significant proportion of Hill and Dale’s sales are made to
customers who enter the store in order to buy one particular
item but, once there, find other items to buy as well.
B. In Boravia when the economy is strong, those who might
otherwise go camping tend to take vacations overseas.
C. The economic upturn is likely to allow Boravia’s national
parks, where most of the camping and hiking is
done, to receive extra funding to improve their visitor facilities.
D. Advances in materials technology have led to the
development of hiking and camping equipment that
is more comfortable and lightweight than before.
E. Many people in Boravia not only are committed to
preserving the country’s wilderness areas but also
are interested in spending some time in them.


can u plz reveal the source, if it is sets then expect wrong OAs.

For C to be the OA. we need to assume that. once facilities are improved then the park would provide all necessary equipment for hikers and campers, thus, no one needs to buy those equipments. that's is unlikely to happen as campers and hikers are more than million

initially i picked B and will stick to it anyway because i could not find any reason for not choosing B
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Re: CR: Consumers [#permalink] New post 29 Oct 2007, 21:32
sidbidus wrote:
Consumers planning to buy recreational equipment tend to buy higher quality,
more expensive equipment when the economy is strong than when it is
weak. Hill and Dale is a business that sells high-quality, expensive camping
and hiking equipment in Boravia. Although all the signs are that Boravia’s
economy is now entering a period of sustained strength, the managers
of the business do not expect a substantial increase in sales.
Which of the following, if true, would provide the strongest
justification for the managers’ judgment?

A. A significant proportion of Hill and Dale’s sales are made to
customers who enter the store in order to buy one particular
item but, once there, find other items to buy as well.
B. In Boravia when the economy is strong, those who might
otherwise go camping tend to take vacations overseas.
C. The economic upturn is likely to allow Boravia’s national
parks, where most of the camping and hiking is
done, to receive extra funding to improve their visitor facilities.
D. Advances in materials technology have led to the
development of hiking and camping equipment that
is more comfortable and lightweight than before.
E. Many people in Boravia not only are committed to
preserving the country’s wilderness areas but also
are interested in spending some time in them.


Answer is B.

No way it can be C, that requires an additional jump as noted by Raven.
Intern
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 [#permalink] New post 31 Oct 2007, 08:45
Answer B. If improvements are made to the park, you would expect the sales to go up as result of new found interest. So, this can't be the answer.
Manager
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WE 1: 7.5 years in Engg. Consulting
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 [#permalink] New post 31 Oct 2007, 18:56
Hands down B. Clearly it shows that H&D's revenue will be affected since people will rather go for overseas than buy camping gear and go for camping. Looks pretty straightforward.

Know the source. OA has to be wrong.
  [#permalink] 31 Oct 2007, 18:56
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