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# During a single hour of a pledge drive for a public radio

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Re: Pledge [#permalink]  13 Sep 2010, 01:55
I thought D was a trap...Thinking too much i guess
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Re: Pledge [#permalink]  13 Sep 2010, 19:05
Hey Vignes,

Not sure about your question. We're not assuming anything. We're trying to find something that explains the discrepancy, which is that somehow, the association gave away gifts worth the exact amount of the relevant pledges, but ended up making money. The only thing that could explain this is that the charity itself DID NOT pay retail price for the gifts (even though they were WORTH the exact value of the pledge).

-t
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Re: Pledge [#permalink]  14 Sep 2010, 14:03
Thank you Tommy. I was thinking too much when answering this question....
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Re: Pledge [#permalink]  08 Oct 2010, 01:41
Can someone tell why A is wrong.. .because if the cost of the article has been inflated by adding the cost of postage, then naturally, it will be like

Total cost of goods = actual cost + cost of postage ( this is just inflation ) = total pledge

so out flow for procuring goods will not include the cost of postage because no cost is incurred for postage
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Re: Pledge [#permalink]  08 Oct 2010, 13:19
D for me. . .
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Re: Pledge [#permalink]  13 Oct 2010, 08:18
+1 D
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Re: Pledge [#permalink]  13 Oct 2010, 11:40
phoenixrulzz wrote:
I thought D was a trap...Thinking too much i guess

D was a trap in that it wanted you to think it was a trap! Tricky.

I went with D as a first reaction and stuck with it.
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Re: Pledge [#permalink]  26 Jan 2011, 00:04
Pkit wrote:
RaviChandra wrote:
Thanks TommyWallach,
Now its very clear

 "total money raised from pledges accounted for a larger dollar amount than the amount organizers had paid for all the free gifts."

think about that they may have bought all the gifts at a discount from wholesaller.

If there was ans. choice like the one Pkit assumes then, I think, it would prevail over D which is the OA.
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Re: Pledge [#permalink]  27 Jan 2011, 06:37
i have a question, if the gifts are not paid for , how can we say "amount paid for" even if it is $0? usually, IMO you say the gifts are free . Ex:- a question like "how much did u pay for those shirts?" should have the answer "i didn't pay for those" or "i got them for free" . i can't say "i paid$0" can i? is it correct formally??
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Re: Pledge [#permalink]  27 Jan 2011, 11:15
D. Easy one.
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Re: Pledge [#permalink]  10 Feb 2011, 19:33

thanks !!
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Re: Pledge [#permalink]  13 Apr 2011, 23:00
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Re: Pledge [#permalink]  20 May 2011, 06:46
D it is.
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Re: Pledge [#permalink]  20 May 2011, 08:31
d

because avg price of gift goes down when free gifts are added, but pledge amount remains same..
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Re: During a single hour of a pledge drive for a public radio [#permalink]  28 May 2014, 00:37
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Re: During a single hour of a pledge drive for a public radio [#permalink]  08 Jul 2015, 20:24
Option B is misleading and is a potential trap if you think too much about it. Organizers can be surprised by how much money came in, but it doesn't say anything about running out of gifts. If organizers ran out of gifts, then the pledges were met with no gift at all. Of course, pledgers may withdraw if there is no gift... and the announcement only said that pledges were encouraged by the news that pledges would be met with a free gift that has a retail value equal to the pledge amount. It doesn't say that it was guaranteed. But that line of reasoning isn't sufficient to answer the question. It boils down to what you definitively know or don't know - you don't know that they ran out of free gifts.

Option D could mean that organizers paid $0. Another scenario would be that they paid 80% of the gifts, whereas sponsors donated the last 20%. So,$ pledge > $paid for gifts by organizers. Answer D. Manager Joined: 27 Jul 2014 Posts: 138 Followers: 1 Kudos [?]: 5 [0], given: 8 Re: During a single hour of a pledge drive for a public radio [#permalink] 30 Jul 2015, 05:17 can somebody explain option E I was unable to understand the wording Manager Joined: 08 Jun 2015 Posts: 123 Followers: 0 Kudos [?]: 13 [1] , given: 40 During a single hour of a pledge drive for a public radio [#permalink] 30 Jul 2015, 09:02 1 This post received KUDOS kanigmat011 wrote: can somebody explain option E I was unable to understand the wording E) More money was raised during this hour than during the previous three hours, driving down the average out-of-pocket cost of the free gifts. We take E as true, which means average cost must drop. Average cost: Total C/Q Imagine each "gift" is what the pledgers are buying. Each item is$1; every donor pledges only $1 Each item is matched with a gift of equal value, which essentially means that the pledge drive stops as soon the gifts are gone (and not that there is an infinite quantity of gifts on hand, though the organizers can simply go out and buy more gifts after receiving the pledges, thereby prolonging the pledge drive for as long as possible with an "unlimited" quantity). Let's say you start off by buying$10 in gifts:
Hour 1: $1 raised Average cost after 1 hour:$10/1 = $10.00 per item Hour 2:$5 raised
Average cost after 2 hours: $10/6 =$1.67 per item

It doesn't give us any information that we don't already know. That is, we already know that at the end of the day, average cost will be $1 in the example above , since all pledges are matched with an equivalent retail value. The total quantity could be 6 with an average cost that's$1.67 with $6 raised, which would still lead to an average cost of$1 at the end of the pledge drive. Or, it could be $100 in initial cost with$100 raised in pledges with an average cost of \$1 after just the first hour. The total cost is equivalent to the total pledge amount in all cases.

If you think about it, it doesn't make sense to hold a pledge drive by spending the same amount of money on gifts as the amount you will receive from pledges - there are other costs to consider, too, such as shipping, utilities, etc... but that's an aside.
During a single hour of a pledge drive for a public radio   [#permalink] 30 Jul 2015, 09:02

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