Distance learning offers a potentially lucrative option for

A seems correct.

Other choice would be C. But C infers little too less.

A. The costs associated with offering distance learning are lower than those of other instruction methods.
-- The stimulus never mentions the different types of costs associated with distance learning methods v/s other instruction methods. So, according to me this statement cannot be inferred.
C. Distance learning does not required climate control or parking facilities.
-- Whereas, the stimulus clearly says "Money that would otherwise be spent on classroom space, parking facilities, climate control, and other" for location specific methods. It would not be extreme to say that Distance learning does not require climate control or parking facilities

Hi Mike,
Still a bit confused. It mentions that "Money that would otherwise be spent on....can be diverted to marketing and quality control." Wouldn't that cause A to be questioned since the money is just being diverted and not really saved?
Thanks.

Dear RMART,
My friend, I don't know how much you know about how businesses operate, but this would be very good stuff to understand before you set out on your MBA. Some of the expenses of a business are "necessarily evils" ---- for example, every dollar spent on rent or parking or climate control is just gone --- those are necessary expenses, but the business doesn't get anything except the ability to keep doing what they already are doing. Perhaps some of those might be investments, say if they are paying the mortgage on a space, but even then, the money they spend doesn't move the business itself forward.

By contrast, what business love to spend money on are things that promote growth. Advertising & marketing are prime examples. Under the right conditions, if marketing is done right, every dollar spent on marketing brings back, say, $2 or $3 in increase revenue (i.e. new customers that result from the marketing). Once a business has established this "multiplying" effect with its marketing, then it can just throw money in that direction, because every dollar will multiply. Throwing money at a money multiplier is a virtually ideal state for business growth.

For a business to be able to divert money from never-see-again kinds of expenses to investments that multiply --- for anyone who runs a business, this is simply a dream-come-true improvement. As anyone who runs a business knows, a dollar spent is NOT just a dollar spent --- where it is spent makes all the difference.

Again, if you are not familiar with the details of how businesses operate, that would be an excellent place to do some reading up before you apply to B-school.

Does this make sense?
Mike

I'm confused how (A) can be inferred. The paragraph mentions that distance learning is cheaper.

Dear animanga008,
I'm happy to help.

This is a very tricky thing about inference on the GMAT. Here's the link to a blog article:
https://magoosh.com/gmat/2012/inference- ... rehension/
Even though that article is about RC, inference on the CR is much the same.

You see, it's true that the GMAT will not ask you to infer something that is said literally, in black and white, on the page. BUT (big "but") --- a correct inference on the GMAT will only be a shade different, a hair's breadth away, from what was said explicitly.

Notice, the words "cheaper" or "more expensive" appear nowhere in the text. The text literally talks about how money formerly spent on thing X can now be spent on thing Y. It never makes a statement anywhere that the costs associated with distance learning are lower than anything else. In fact, it never makes an explicit statement about the costs associated with distance learning at all. And yet, we undeniably know, without a shadow of a doubt, that if everything in the passage is true, then it absolutely must be the case that distance learning is cheaper. How do we know this is the case? We inferred it!

The thing that the GMAT will ask you to infer is often like this --- the thing that is not explicitly expressed, but is so absolutely obvious a deduction, and almost identical to what is said, that we will sometimes swear, "I'm sure they said X in the paragraph" even though they didn't. If the statement gives you the feeling that it was stated, even though it wasn't, that's a superbly designed inference question --- exactly what the GMAT wants to do when it creates such a question.

Does all this make sense?
Mike

As per my understanding learning institutions save money on classroom space, parking facilities, climate control, and other particulars associated with providing a location-specific service.... and divert the amount to marketing and quality control to further enhance business( the "new business" is confusing ... they should have used the savings to furtherance of the existing business).

A. The costs associated with offering distance learning are lower than those of other instruction methods.how can we definitely say that....do we assume that class room education and distant learning are the only two modes of imparting education..may be a third mode is cheaper....in any case no such mention in the stimulus....

C. Distance learning does not require climate control or parking facilities....we can definitely say that as the stimulus says so....

WHY THEN SHOULD "A" BE CORRECT.......

Could Mikemcgarry explain please.....

A. The costs associated with offering distance learning are lower than those of other instruction methods.

How can you infer the difference between costs of other instruction methods and distance learning... clearly this is an assumption on which conclusion relies... Argument is not stating that distance learning is a lucrative option because it costs less. Premise is just talking about redirection of expenses in other verticals .. conclusion distance learning is lucrative... Thus option A is an assumption that bridges this gap.

C. Distance learning does not required climate control or parking facilities... << Right choice baby..
This is what we can infer from argument.. as institutes will invest money in marketing and quality control rather than in parking etc etc...

As per power score definition : inference is what follows from an argument, whereas assumption is taken for granted before making argument... inference is made after the argument is complete and follows from argument.

Dear semwal
I'm happy to help. First of all, I believe you misunderstand the used of the word "business" at the end of this passage:
Distance learning offers a potentially lucrative option for learning institutions. Money that would otherwise be spent on classroom space, parking facilities, climate control, and other particulars associated with providing a location-specific service can be diverted to marketing and quality control, two crucial factors that can drive new business.
Here, the passage does not mean "a business" in the sense of "a company", which already exists. The passage means "business" in the sense of "doing business" or "good for business"----- commercial activity as such. Here, "drive new business" means, essentially, "generate new customers."

As far as the difference between (A) & (C) --- you're right. That's a good objection to (A). The important point is, though: this is a poor question. You are wasting your time by thinking deeply about this question. Some CR questions are tricky and hard because they are well written, and thinking about such questions will improve your GMAT score. This is not such a questions. Other CR questions are tricky or hard simply because they are poorly thought-out and poorly written. This is such a question. Focusing on this is not going to help you. I assume you do not plan to spend ten years getting ready for the GMAT. Time is short: focus on the question that will really help you.

Does this make sense?
Mike

Option C is an assumption !!
whereas Option A can be directly inferred from the text.

Hi mikemcgarry

I have a doubt here regarding option A. here we are comparing distance learning with other learning method. option A tells The costs associated with offering distance learning are lower than those of other instruction methods. here we are talking about multiple methods could you please clarify C?

Regards
Pawan

Dear Pawan,

I'm happy to respond. The first point to keep in mind is that this is, fundamentally, not a good question, and time spent analyzing it in detail is not necessarily helpful.

Here's the prompt again.
Distance learning offers a potentially lucrative option for learning institutions. Money that would otherwise be spent on classroom space, parking facilities, climate control, and other particulars associated with providing a location-specific service can be diverted to marketing and quality control, two crucial factors that can drive new business.

The implicit comparison in the prompt is between "distance learning" and "location-specific" learning. The latter has many costs that the former does not.

Choice (A) says:
A. The costs associated with offering distance learning are lower than those of other instruction methods.
Notice that this does NOT say that the cost are lower than those associated with ALL other method. This is NOT a statement comparing the costs of distance learning to every other method under the sun. It's merely saying that the cost associated with distance learning is lower than those of SOME other instruction methods. In other words, there exist at least some methods of instruction that are more expensive than distance learning. This has been amply demonstrated by the prompt.

You see, the word "other," used by itself, could imply a very stringent logical condition ("all other instruction methods") or a somewhat more relaxed logical condition ("some other instruction methods"). In the absence of other indicators, we are NOT allows simply to assume that the more stringent condition is implied. This kind of assumption can get you in trouble on the GMAT.

As I indicated above, (C) is also a perfectly correct answer, but it's correct about a detail:
C. Distance learning does not required climate control or parking facilities.
The GMAT will not do this to you. The GMAT will have one correct answer and four answers that are unambiguously wrong. This is a very poor question.

Does all this make sense?
Mike

Dear Mike,
It does not make sense.
Every single CR book that i have read, EXPLICITLY states that we cannot go into solving CR with any prior knowledge of real world. except may be for a few universal truth (Ex:-Sun rises in the East or every coin has only two values a head and a tail and no other face value.)
Every book on CR tells us GMAT World is different than real world when it comes to CR Logic.
It might sound harsh but in this post your explanation just assumes and assumes and then further assumes some more.
And this is not even an assumption question. It is an Inference question and the answer should FLOW only from the premises or fact set mentioned in the stimulus.
No one can go into a CR question by assuming all the things you assumed in your explanation.
Sorry but not satisfied with your response.
The only thing I will agree is that this is a Not a good question.

Dear LogicGuru1

I'm happy to respond. With all due respect, my friend, you are missing an important subtlety that, unfortunately, too many books do not make clear. In fact, many of the books about the GMAT CR I have seen are atrocious, but that's another story. I will say that MGMAT has an excellent book on GMAT CR.

It's true that, for example in a CR on distance learning, you don't need to know anything about the very specifics of distance learning---you don't need what the OG calls "specialized knowledge." You don't need to know specific distance learning-companies (such as Magoosh) and what their plans are, etc. In fact, many of the companies mentioned in GMAT CR are entirely fictional, so one couldn't possibly know anything about their business practices.

Nevertheless, it is a grave mistake to assume that all outside knowledge is bad or irrelevant. In a way, you do acknowledge this in your deference to universal truths, but the fact that the sun rises or that a coin has H & T sides are not particularly potent facts for most CR arguments. By contrast, most of the "universal" truths one should know are facts about economics and the business world. For example, the Law of Supply and Demand is not universally true, but it's a widespread enough pattern that folks should know about it. In fact, there are a number of rules and patterns in the business world, patterns that span several different types of markets, including for-profit businesses vs. non-profits, and the relationship of inflation and unemployment. This is all second-nature to any manager who runs a business, and knowing all these patterns can only help you. Again, it is not "specialized knowledge," but knowledge that permeates the entire business world and global economy.

For example, one widespread truth is the distinction I was discussing in the post you cited: the distinction of money spent on maintenance & necessary expenses vs. the money spent on growth. This is a huge idea, and it shows up not just in one kind of industry, but across almost every sector of the economy. This would be absolutely intuitive and second-nature to anyone in the business world. In a way, the CR is a test of how much your logic matches the logic of someone in the business world, and with most official questions, good instincts about the push & pull of the real business world will guide you in eliminating some answer and choosing others. It's true that, in an inference question, the answer should follow strictly from what is said in the prompt, but having good instincts for the business world will help you to isolate that answer choice quickly and efficiently.

See:
GMAT Critical Reasoning and Outside Knowledge

Many students don't understand this distinction, and in fact, some authors of those substandard books don't understand this either. The business world has its own way of thinking and analyzing, and the entire GMAT is very much about measuring your "business intelligence."

Does this make sense?
Mike

Respectfully disagree with everything you mentioned. You again made an assumption that the books I was refereeing to are substandard. But I am equally at fault. I must have mentioned the books that were in my mind while I was writing that post. If Powerscore GMAT CR bible and "A Concise introduction to logic By Patrick Hurley are substandard books, then I don't know what the world is coming to ? I don't know whether you have given a try to veritas CR. Both these books (even though concise introduction to logic is not a GMAT book per se but more of "the bible" of logic for every single philosophy student) clearly mention that logic has nothing to do with day to day functioning of the world. The usual culprits .. terms such as like fallacy and cogency and validity of an argument exist for the very same reason that world of logic is not equivalent to every day world. A strong but incorrect premise will always lead to a valid, but un-cogent conclusion. Deductive arguments always weaker than inductive arguments. And there is a reason for all this. Logic do not work the way you are presenting it. It is and it always be a deadly mistake to tackle any CR problem with any tool except what the stimulus present. Even in inference, assumption, strengthen, weaken question, the correct answer flows from the stimulus. Hence I will state again Handling CR is done best when one's mind is a clean slate.
p.s:-MGMAT CR is one of the worst three if not the worst CR book doing the rounds. My recommendation to everyone is to stay away from the over rated MGMAT CR as one should stay from haunted castles in Transylvania on a moonless night.

I suppose it is Main Point question in which conclusion exists. In typical inference questions conclusion is not provided

Here "Distance learning offers a potentially lucrative option for learning institutions" is a conclusion

So, for such type of questions the answer choice that rephrase conclusion is always correct.

Option A is such choice

Distance learning offers a potentially lucrative option for learning institutions. Money that would otherwise be spent on classroom space, parking facilities, climate control, and other particulars associated with providing a location-specific service can be diverted to marketing and quality control two crucial factors that can drive new business.

Which of the following can be correctly inferred from the statements above?

A. The costs associated with offering distance learning are lower than those of other instruction methods.
Correct choice for an inference question.

B. Online classes are more convenient for both instructors and students than are classes held at specific geographic locations.
The convinience is not discussed in the argument.

C. Distance learning does not required climate control or parking facilities.
Out of scope(lol)

D. Most types of instruction can be effectively conducted in an online setting.
Wrong for inference,right for assumption

E. Computers and internet access are uniformly available to people in the developed world.
Out of scope.