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

It is currently 21 Oct 2014, 03:01

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Garnet and RenCo each provide health care for their

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 19 Feb 2014
Posts: 6
Location: United States
Concentration: Strategy, General Management
GMAT Date: 09-29-2014
WE: Analyst (Consumer Products)
Followers: 0

Kudos [?]: 0 [0], given: 7

Re: Garnet and RenCo each provide health care for their [#permalink] New post 21 Sep 2014, 14:45
egmat wrote:
Marcab wrote:
Still the question, whats wrong with C? Explanations will be appreciated.


Hi,

I think I should offer my two cents to the reason why C cannot be the answer. This is a doubt expressed by a number of people.

Let's start with a basic question - what incentive does Garnet has to allow cholesterol testing?

The reason is clearly given in the passage that it allows it to save money that would have been spent on treatment of cholesterol, once its employees gets affected (after some years).

Now, what makes us think that a similar policy won't help Renco save money? Are employees of Renco any different from Garnet?

Some people have opined that it would lead to a lot of upfront cost for Renco because it has significantly more employees than Garnet. But with the same reason, one can say that allowing cholesterol testing should save Renco significantly more since it has larger number of employees.

So, if the proportion of employees that are going to be treated for cholesterol are same for Garnet and Renco, both the companies have the financial incentive to support cholesterol testing.

So, Renco has the same financial incentive as Garnet if there is no difference in the employees of the two companies.

Option E specifically talks about the difference in employees of Renco and Garnet. Renco employees stay in the company for shorter period of time than Garnet employees.

Therefore, option E is correct.

Hope this helps :)

Let me know if further clarity is needed.

Thanks,
Chiranjeev


Hi, could you please discuss why D is incorrect? Tks!
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesGMAT Pill GMAT Discount Codes
Moderator
Moderator
User avatar
Joined: 25 Apr 2012
Posts: 670
Location: India
GPA: 3.21
WE: Business Development (Other)
Followers: 18

Kudos [?]: 316 [0], given: 675

Premium Member CAT Tests
Re: Garnet and RenCo each provide health care for their [#permalink] New post 30 Sep 2014, 20:31
pb_india wrote:
Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo dose not have the same financial incentive to adopt such a policy, because ______.

A. early treatment of high cholesterol dose not entirely eliminate the possibility of a stroke later in life
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol
C. RenCo has significantly more employees than Garnet has
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees
E. the average length of time an employee stays with RenCo is less than it is with Garnet



Such type of questions are very difficult to be categorized into St,We or Inference type...But the trick is to look at Introductory wordings before the line portion...
Attachment:
Untitled.png
Untitled.png [ 8.55 KiB | Viewed 41 times ]

Clearly this becomes a strengthen question because we need to reason out as to what is the incentive for Renco for not offerings incentives to its employees...

For a Strengthen question, The correct answer
*Should present new information to argument
Also, For Strengthen question you need to look for Logical Gaps or look for Common Logical fallacies(Correlation--->Causation, Generalization on limited data presented or interpreting data)

Now, if we go back to the argument, you will see that Garnet does pay for testing and for treatment of high cholesterol because an untreated cholesterol for many years lead to expansive treatment later on------> This points that Employees at Granet stay at company for many years..or very loyal ( :clap: ...can't imagine same thing in india unless you are with Tata or Govt employee)...This is a potential gap ie what if employees at Renco don't stay for that long...

A. early treatment of high cholesterol dose not entirely eliminate the possibility of a stroke later in life----> This will be the case for employees at both the companies
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol----> Does not help the argument unless we know a lot more about Renco employees
C. RenCo has significantly more employees than Garnet has-----> Has significantly more employees means more cost even for testing and treatment...hey but what if they have higher attrition surely there costs will be significantly more because for new employees (frequent) they will have to shell out more...we know nothing about stay of employees... for this argument it is crucial.. Otherwise the argument will swing based on our answer to portion highlighted in red
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees---->fare enough but we are concerned with high cholesterol and not with degree of how high
E. the average length of time an employee stays with RenCo is less than it is with Garnet----> Where were you...I was looking for you in the option...
Ans is E

PS: I chose C initially but the Gmat prep question...had brilliantly masked the information which was crucial to the arguement..
_________________


“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”

Re: Garnet and RenCo each provide health care for their   [#permalink] 30 Sep 2014, 20:31
    Similar topics Author Replies Last post
Similar
Topics:
2 Experts publish their posts in the topic Country Z's National Health-Care Program(NHCP) provides free prakash111687 3 18 Jun 2012, 06:25
International health care management/masters in health care dramyth 0 22 May 2012, 13:15
1 Garnet and RenCo each provide health care for their eybrj2 8 27 Apr 2012, 18:19
Providing adequate public health-care facilities is a agnok 3 14 May 2010, 15:42
Garnet and RenCo each provide health care for their marcodonzelli 4 12 Jan 2008, 06:36
Display posts from previous: Sort by

Garnet and RenCo each provide health care for their

  Question banks Downloads My Bookmarks Reviews Important topics  

Go to page   Previous    1   2   [ 22 posts ] 



cron

GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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®.