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

It is currently 21 Aug 2014, 06:48

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:
1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 10 Dec 2004
Posts: 274
Followers: 1

Kudos [?]: 15 [1] , given: 0

GMAT Tests User
Garnet and RenCo each provide health care for their [#permalink] New post 20 Jan 2005, 20:24
1
This post received
KUDOS
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

72% (01:51) correct 28% (01:00) wrong based on 235 sessions
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
[Reveal] Spoiler: OA

_________________

"Forums are meant to benefit all. No one is interested in knowing what your guesses are. Please explain the reasoning behind the answer you chose. This will also help you organize your thoughts quickly during the exam."


Last edited by dentobizz on 14 Nov 2013, 01:27, edited 1 time in total.
Adding OA
Director
Director
User avatar
Joined: 21 Sep 2004
Posts: 619
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
 [#permalink] New post 21 Jan 2005, 05:57
E. The only one which talks about the time frame. the average length of time an employee stays with RenCo is less than it is with Garnet
which is of importance because it is said that This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment
Manager
Manager
User avatar
Status: Dream big, work hard, and drink gallons of beer!
Joined: 11 Jun 2011
Posts: 213
Concentration: Finance, General Management
GMAT Date: 10-01-2011
WE: Web Development (Consulting)
Followers: 2

Kudos [?]: 10 [0], given: 33

Re: CR - Garnet and RenCo [#permalink] New post 24 Sep 2011, 11:12
As far as I know average is not a good indicator for any stats. In this case, it's been argued that average length of time an employee stays with RenCo is less than with Garnet. But in reality, this average might be less just because of few employees. Other employees may very well have length of time greater than that with Garnet. Considering this factor, is E still correct as many have suggested on this forum? Can someone please explain?

Also, I chose C because I thought if RenCo has more number of employees then upfront expenditure may be much more than the Garnet and my assumption is that not many employees will necessarily require expensive treatment. Hence, RenCo may not have the same advantage as Garnet. I was not fully convinced with this option either, but it sounded better than E.
_________________

If I look absent-minded or insane, I am just living a dream of being successful. If you still wonder why I am like this, you have no idea how success tastes like!

2 KUDOS received
Math Forum Moderator
avatar
Joined: 20 Dec 2010
Posts: 2048
Followers: 128

Kudos [?]: 898 [2] , given: 376

GMAT Tests User
Re: CR - Garnet and RenCo [#permalink] New post 24 Sep 2011, 13:43
2
This post received
KUDOS
sgupta0827 wrote:
As far as I know average is not a good indicator for any stats. In this case, it's been argued that average length of time an employee stays with RenCo is less than with Garnet. But in reality, this average might be less just because of few employees. Other employees may very well have length of time greater than that with Garnet. Considering this factor, is E still correct as many have suggested on this forum? Can someone please explain?

Also, I chose C because I thought if RenCo has more number of employees then upfront expenditure may be much more than the Garnet and my assumption is that not many employees will necessarily require expensive treatment. Hence, RenCo may not have the same advantage as Garnet. I was not fully convinced with this option either, but it sounded better than E.


I agree with you to an extent. The average is not a good indicator when the data are too widely dispersed. However, if we consider the standard deviation is not too much, the answer perhaps lies in the word "incentive". If we replace the word "incentive" with "capacity", "C" becomes a stronger candidate. Incentive is something like an ROI. If RenCo's employees quit every two years, why does it have to worry about the long term demerits of the ailment as to oppose to the Garnet employees, who work at least 25-30 years for the company. Yes, I am assuming a wild case where the average of the two cases will vary significantly. Too many assumptions are making it a weak argument.

But, E is the strongest among the weak.
_________________

~fluke

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Manager
Manager
User avatar
Status: Dream big, work hard, and drink gallons of beer!
Joined: 11 Jun 2011
Posts: 213
Concentration: Finance, General Management
GMAT Date: 10-01-2011
WE: Web Development (Consulting)
Followers: 2

Kudos [?]: 10 [0], given: 33

Re: CR - Garnet and RenCo [#permalink] New post 24 Sep 2011, 15:27
fluke wrote:
sgupta0827 wrote:
As far as I know average is not a good indicator for any stats. In this case, it's been argued that average length of time an employee stays with RenCo is less than with Garnet. But in reality, this average might be less just because of few employees. Other employees may very well have length of time greater than that with Garnet. Considering this factor, is E still correct as many have suggested on this forum? Can someone please explain?

Also, I chose C because I thought if RenCo has more number of employees then upfront expenditure may be much more than the Garnet and my assumption is that not many employees will necessarily require expensive treatment. Hence, RenCo may not have the same advantage as Garnet. I was not fully convinced with this option either, but it sounded better than E.


I agree with you to an extent. The average is not a good indicator when the data are too widely dispersed. However, if we consider the standard deviation is not too much, the answer perhaps lies in the word "incentive". If we replace the word "incentive" with "capacity", "C" becomes a stronger candidate. Incentive is something like an ROI. If RenCo's employees quit every two years, why does it have to worry about the long term demerits of the ailment as to oppose to the Garnet employees, who work at least 25-30 years for the company. Yes, I am assuming a wild case where the average of the two cases will vary significantly. Too many assumptions are making it a weak argument.

But, E is the strongest among the weak.


Thanks fluke for the explanation. Perhaps I am still lacking the depth to understand these questions. Even after reading your explanation I don't understand the difference between capacity and incentive, and why would capacity make "C" a stronger candidate? I am always wary about choosing an option with "average". Do you know any strategy when I am in dilemma about these options?
_________________

If I look absent-minded or insane, I am just living a dream of being successful. If you still wonder why I am like this, you have no idea how success tastes like!

1 KUDOS received
Math Forum Moderator
avatar
Joined: 20 Dec 2010
Posts: 2048
Followers: 128

Kudos [?]: 898 [1] , given: 376

GMAT Tests User
Re: CR - Garnet and RenCo [#permalink] New post 24 Sep 2011, 17:01
1
This post received
KUDOS
sgupta0827 wrote:
Thanks fluke for the explanation. Perhaps I am still lacking the depth to understand these questions. Even after reading your explanation I don't understand the difference between capacity and incentive, and why would capacity make "C" a stronger candidate? I am always wary about choosing an option with "average". Do you know any strategy when I am in dilemma about these options?


Like I said, your doubt about the average is justified.

"However, RenCo dose not have the same financial incentive to adopt such a policy, because RenCo has significantly more employees than Garnet has."
Now, how do we know that there are no financial incentives to adopt a policy just on the basis of company's employee strength? We actually don't unless we are given a good reason. "E" gives us that reason.

Let's think it like this:
I) I'm not going to get much return even if I medically insure my employees because they are just too many in numbers. (Financial incentive-the return of investment)

II) I just can't afford to medically insure my employees because they are too many in numbers. (Financial incapacity)

III) I'm not going to get much return even if I medically insure my employees because they will leave my company after a short time anyway.
E is trying to say just that in a convoluted manner.

IMO, "III" is a better reason than "I" for not getting the employees insured.
_________________

~fluke

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Manager
Manager
User avatar
Status: Dream big, work hard, and drink gallons of beer!
Joined: 11 Jun 2011
Posts: 213
Concentration: Finance, General Management
GMAT Date: 10-01-2011
WE: Web Development (Consulting)
Followers: 2

Kudos [?]: 10 [0], given: 33

Re: CR - Garnet and RenCo [#permalink] New post 24 Sep 2011, 19:00
fluke wrote:
sgupta0827 wrote:
Thanks fluke for the explanation. Perhaps I am still lacking the depth to understand these questions. Even after reading your explanation I don't understand the difference between capacity and incentive, and why would capacity make "C" a stronger candidate? I am always wary about choosing an option with "average". Do you know any strategy when I am in dilemma about these options?


Like I said, your doubt about the average is justified.

"However, RenCo dose not have the same financial incentive to adopt such a policy, because RenCo has significantly more employees than Garnet has."
Now, how do we know that there are no financial incentives to adopt a policy just on the basis of company's employee strength? We actually don't unless we are given a good reason. "E" gives us that reason.

Let's think it like this:
I) I'm not going to get much return even if I medically insure my employees because they are just too many in numbers. (Financial incentive-the return of investment)

II) I just can't afford to medically insure my employees because they are too many in numbers. (Financial incapacity)

III) I'm not going to get much return even if I medically insure my employees because they will leave my company after a short time anyway.
E is trying to say just that in a convoluted manner.

IMO, "III" is a better reason than "I" for not getting the employees insured.


hmm now I understand the difference between ROI and Financial capacity in this context.
_________________

If I look absent-minded or insane, I am just living a dream of being successful. If you still wonder why I am like this, you have no idea how success tastes like!

Manager
Manager
User avatar
Status: Target MBA
Joined: 20 Jul 2010
Posts: 212
Location: Singapore
Followers: 0

Kudos [?]: 9 [0], given: 12

GMAT Tests User
Re: CR - Garnet and RenCo [#permalink] New post 26 Sep 2011, 08:44
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


C and E are strong choices
I would go with E
What's the OA?
_________________

Thanks and Regards,
GM.

Director
Director
User avatar
Status: My Thread Master Bschool Threads-->Krannert(Purdue),WP Carey(Arizona),Foster(Uwashngton)
Joined: 27 Jun 2011
Posts: 894
Followers: 57

Kudos [?]: 150 [0], given: 57

GMAT ToolKit User Reviews Badge
Re: CR - Garnet and RenCo [#permalink] New post 26 Sep 2011, 13:29
Well i am stuck at C...though i have not covered this type of ques stem yet....But it looks reasonable....

QA
_________________

General GMAT useful links-->

Indian Bschools Accepting Gmat | My Gmat Daily Diary | All Gmat Practice CAT's | MBA Ranking 2013 | How to Convert Indian GPA/ Percentage to US 4 pt. GPA scale | GMAT MATH BOOK in downloadable PDF format| POWERSCORE CRITICAL REASONING BIBLE - FULL CHAPTER NOTES | Result correlation between GMAT and GMAT Club's Tests | Best GMAT Stories - Period!

More useful links-->

GMAT Prep Software Analysis and What If Scenarios| GMAT and MBA 101|Everything You Need to Prepare for the GMAT|New to the GMAT Club? <START HERE>|GMAT ToolKit: iPhone/iPod/iPad/Android application|

Verbal Treasure Hunt-->

"Ultimate" Study Plan for Verbal on the GMAT|Books to Read (Improve Verbal Score and Enjoy a Good Read)|Best Verbal GMAT Books 2012|Carcass Best EXTERNAL resources to tackle the GMAT Verbal Section|Ultimate GMAT Grammar Book from GC club [Free Download]|Ultimate Sentence Correction Encyclopedia|Souvik's The Most Comprehensive Collection Of Everything Official-SC|ALL SC Rules+Official Qs by Experts & Legendary Club Members|Meaning/Clarity SC Question Bank by Carcass_Souvik|Critical Reasoning Shortcuts and Tips|Critical Reasoning Megathread!|The Most Comprehensive Collection Of Everything Official- CR|GMAT Club's Reading Comprehension Strategy Guide|The Most Comprehensive Collection Of Everything Official- RC|Ultimate Reading Comprehension Encyclopedia|ALL RC Strategy+Official Q by Experts&Legendary Club Members

----
---
--
-


1 KUDOS = 1 THANK


Kick Ass Gmat

Senior Manager
Senior Manager
avatar
Joined: 12 Oct 2011
Posts: 276
Followers: 0

Kudos [?]: 21 [0], given: 110

Re: Garnet and RenCo each provide health care for their [#permalink] New post 02 Jan 2012, 08:42
E should be the answer. It specifies why RenCo does not have the "incentive" for such a move. If its employees are going to quit the company within a short span, then paying for the testing and treatment of high cholesterol does not make sense. The company would not incur any long term loss anyway because its employees would already have quit by the time they develop high cholesterol levels.
_________________

Consider KUDOS if you feel the effort's worth it

Director
Director
User avatar
Status: Enjoying the GMAT journey....
Joined: 26 Aug 2011
Posts: 735
Location: India
GMAT 1: 620 Q49 V24
Followers: 60

Kudos [?]: 273 [0], given: 264

GMAT ToolKit User GMAT Tests User Premium Member
Re: Garnet and RenCo each provide health care for their [#permalink] New post 02 Jan 2012, 10:20
whts wrong with C???
_________________

Fire the final bullet only when you are constantly hitting the Bull's eye, till then KEEP PRACTICING.

A WAY TO INCREASE FROM QUANT 35-40 TO 47 : a-way-to-increase-from-q35-40-to-q-138750.html

Q 47/48 To Q 50 + the-final-climb-quest-for-q-50-from-q47-129441.html#p1064367

Three good RC strategies three-different-strategies-for-attacking-rc-127287.html

Senior Manager
Senior Manager
avatar
Joined: 12 Oct 2011
Posts: 276
Followers: 0

Kudos [?]: 21 [0], given: 110

Re: Garnet and RenCo each provide health care for their [#permalink] New post 02 Jan 2012, 11:12
rajeevrks27 wrote:
whts wrong with C???

I think the explanations discussed above might help. Just having more employees is not sufficient to act as a deterrent to the financial incentive. That is why E is better.
_________________

Consider KUDOS if you feel the effort's worth it

Expert Post
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1425
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 127

Kudos [?]: 590 [0], given: 62

GMAT ToolKit User GMAT Tests User Premium Member
Re: Garnet and RenCo each provide health care for their [#permalink] New post 26 Dec 2012, 04:51
Expert's post
Still the question, whats wrong with C? Explanations will be appreciated.
_________________

Prepositional Phrases Clarified|Elimination of BEING| Absolute Phrases Clarified
Rules For Posting
www.Univ-Scholarships.com

Senior Manager
Senior Manager
User avatar
Joined: 13 Aug 2012
Posts: 464
Concentration: Marketing, Finance
GMAT 1: Q V0
GPA: 3.23
Followers: 14

Kudos [?]: 187 [0], given: 11

GMAT ToolKit User GMAT Tests User
Re: Garnet and RenCo each provide health care for their [#permalink] New post 07 Jan 2013, 06:07
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


We are looking for a good reason why it's RenCo has no reason to spend like Garnet on treating high-cholesterol of its employees.
It's given if left untreated for many years, it becomes more costly.

While I was reading this, I thought to myself aren't they planning to resign earlier than that.

It is not C because the reason for the incentive is more about avoiding future extra costs. Time is more of the issue. We need to assume a little more about the significance of number of employees if we are to take this as correct response.

D and E are contenders to me. But, E is best because it shows that RenCo doesn't have to worry because employees aren't going to be employed with them that long.

Answer: E
_________________

Impossible is nothing to God.

Expert Post
e-GMAT Representative
User avatar
Joined: 02 Nov 2011
Posts: 1775
Followers: 1227

Kudos [?]: 3359 [0], given: 181

Re: Garnet and RenCo each provide health care for their [#permalink] New post 21 Jan 2013, 19:13
Expert's post
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
_________________



Free Webinar: August 24, 2014 - Improve by 70 Points in 30 days: Register for this Free Webinar to learn how to define your strategy, analyze your mocks and improve by 70 points in 30 days. Click here to register.

Verbal Forum Moderator
Verbal Forum Moderator
avatar
Joined: 23 Jul 2010
Posts: 484
Followers: 40

Kudos [?]: 411 [0], given: 243

Premium Member
Re: Garnet and RenCo each provide health care for their [#permalink] New post 14 Nov 2013, 02:56
Bumping for review and further discussion
New GmatClub project Click here

_________________

How to CHOOSE your Business School
Thanks = Kudos. Kudos are appreciated

Rules for posting on the verbal forum
When you post a question Pls. Provide its source & TAG your questions
Avoid posting from unreliable sources such as 1000 series.

Manager
Manager
avatar
Joined: 26 Jan 2014
Posts: 71
Followers: 1

Kudos [?]: 10 [0], given: 68

Re: Garnet and RenCo each provide health care for their [#permalink] New post 27 Jan 2014, 00:44
I don't know whether my view on the Qs is right.But if it give helps,I would be appreciated.

First I chose C like you guys and then when I looked the question and paragraph again,I have noticed why E is BETTER than C.

BETTER in GMAT is important.not saying that C is wrong.

the main point about the policy is whether the TIME is OK. Garnet gave us reason why he make it real " since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. " So in my mind it is all about the time. If C is BETTER than E, I think the whole paragraph would be nonsense, cuz we could assume that without any information.
Senior Manager
Senior Manager
avatar
Joined: 20 Dec 2013
Posts: 269
Location: India
Followers: 0

Kudos [?]: 52 [0], given: 29

Re: Garnet and RenCo each provide health care for their [#permalink] New post 27 Jan 2014, 09:15
The argument rests upon the proof that R's employees do not stay with it for as long as G's do which is provided by E.
That's because R won't have to worry about employees' long term health if they do not stay for such a long time so as to develop a serious condition.

Posted from my mobile device Image
Intern
Intern
avatar
Joined: 10 Dec 2013
Posts: 1
Followers: 0

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

Re: Garnet and RenCo each provide health care for their [#permalink] New post 29 Jan 2014, 08:04
"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?
Senior Manager
Senior Manager
avatar
Joined: 03 May 2013
Posts: 321
Location: India
Concentration: Operations, Human Resources
Schools: ISB '16, IIMA (M)
GPA: 4
WE: Human Resources (Human Resources)
Followers: 0

Kudos [?]: 36 [0], given: 46

Re: Garnet and RenCo each provide health care for their [#permalink] New post 30 Jan 2014, 08:35
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 does not entirely eliminate the possibility of stroke later in life....that may apply to both firms...irrelevant
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol...so what?
C. RenCo has significantly more employees than Garnet has....employee strength is irrelevant
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employeeseven if it is equal...the financial benefit should have accrued...
E. the average length of time an employee stays with RenCo is less than it is with Garnetcorrect..note the premise-[color=#0000ff]""This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment""...if average time spent is less less benefit accrues from it as cases of " high cholesterol left untreated for many years leading to conditions requiring very expensive treatment " .. may not be there.....[/color]
Re: Garnet and RenCo each provide health care for their   [#permalink] 30 Jan 2014, 08:35
    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  


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®.