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Garnet and RenCo each provide health care for their

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Joined: 19 Feb 2014
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Location: United States
Concentration: Strategy, General Management
Schools: Tuck '17 (A)
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Re: Garnet and RenCo each provide health care for their [#permalink]

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New post 21 Sep 2014, 15:45
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!
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Re: Garnet and RenCo each provide health care for their [#permalink]

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New post 30 Sep 2014, 21:31
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:
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Untitled.png [ 8.55 KiB | Viewed 416 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..
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Re: Garnet and RenCo each provide health care for their [#permalink]

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New post 16 Oct 2015, 23:21
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Re: Garnet and RenCo each provide health care for their [#permalink]

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New post 05 Feb 2016, 23:46
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.
Re: Garnet and RenCo each provide health care for their   [#permalink] 05 Feb 2016, 23:46

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