Garnet and RenCo each provide health care for their : GMAT Critical Reasoning (CR) - Page 2
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 23 Jan 2017, 17:50

### 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

# Garnet and RenCo each provide health care for their

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Current Student
Joined: 19 Feb 2014
Posts: 7
Location: United States
Concentration: Strategy, General Management
Schools: Tuck '17 (A)
GMAT 1: 710 Q48 V40
WE: Analyst (Consumer Products)
Followers: 0

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

Re: Garnet and RenCo each provide health care for their [#permalink]

### Show Tags

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!
 e-GMAT Discount Codes Veritas Prep GMAT Discount Codes Manhattan GMAT Discount Codes
Director
Joined: 25 Apr 2012
Posts: 728
Location: India
GPA: 3.21
WE: Business Development (Other)
Followers: 43

Kudos [?]: 699 [0], given: 723

Re: Garnet and RenCo each provide health care for their [#permalink]

### Show Tags

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 [ 8.55 KiB | Viewed 673 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 ( ...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.”

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10543
Followers: 919

Kudos [?]: 204 [0], given: 0

Re: Garnet and RenCo each provide health care for their [#permalink]

### Show Tags

16 Oct 2015, 22:21
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Intern
Joined: 18 Jan 2016
Posts: 10
Followers: 0

Kudos [?]: 0 [0], given: 106

Re: Garnet and RenCo each provide health care for their [#permalink]

### Show Tags

05 Feb 2016, 22:46
vijusan2000th wrote:
"Average length of time an employee stays with R is less than G" still does not justify that they wont have problems related to high cholesterol. Its not that cholesterol problems shall start once they join R or G. What if they already had high cholesterol when they joined R? Probably the work culture or type of work at R is better which leads to its employees having less chances of problems due to high cholesterol. In that context isn't option D most reliable?

I had the same opinion, but if you read a little more into option D you would see that it says "RenCo employees are unlikely to have higher rates ..." which means RenCo employees could be just as likely as Garnet but not more. So, E makes more sense in comparison.
Manager
Status: Waiting game on :|
Joined: 20 Jan 2015
Posts: 50
GMAT 1: 720 Q V
Followers: 1

Kudos [?]: 30 [0], given: 13

Re: Garnet and RenCo each provide health care for their [#permalink]

### Show Tags

28 Jul 2016, 06:43
Can someone explain why D is incorrect here ??
_________________

Please take a moment to hit Kudos if you like my post

Re: Garnet and RenCo each provide health care for their   [#permalink] 28 Jul 2016, 06:43

Go to page   Previous    1   2   [ 25 posts ]

Similar topics Replies Last post
Similar
Topics:
4 Garnet and RenCo each provide health care 2 25 Jan 2015, 21:24
10 Country Z's National Health-Care Program(NHCP) provides free 4 18 Jun 2012, 06:25
3 Garnet and RenCo each provide health care for their 9 27 Apr 2012, 18:19
3 Two computer companies, Garnet and Renco, each pay Salcor to 7 08 Jan 2012, 01:34
Garnet and RenCo each provide health care for their 4 12 Jan 2008, 06:36
Display posts from previous: Sort by

# Garnet and RenCo each provide health care for their

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 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®.