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Hollywood restaurant is replacing some of its standard

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Hollywood restaurant is replacing some of its standard [#permalink] New post 31 Oct 2012, 21:35
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Question Stats:

74% (02:02) correct 26% (01:17) wrong based on 91 sessions
Hollywood restaurant is replacing some of its standard tables with tall tables and stools. The restaurant already fills every available seat during its operating hours, and the change in seating arrangements will not result in an increase in the restaurant's seating capacity. Nonetheless, the restaurant's management expects revenue to increase as a result of the seating change without any concurrent change in menu, prices or operating hours.

Which of the following, if true, provides the best reason for the expectation?

(A)

One of the taller tables takes up less floor space than one of the standard tables.
(B)

Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables.
(C)

Since the restaurant will replace only some of its standard tables, it can continue to accommodate customers who do not care for the taller tables.
(D)

Few diners are likely to avoid the restaurant because of the new seating arrangement.
(E)

The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense.

Can you provide some guidance as to how to identify the correct answer? I couldn't see any of the answer choice which necessarily resulted in an increase in revenue.

Many thanks to you.
[Reveal] Spoiler: OA
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Re: Hollywood restaurant is replacing some of its standard table [#permalink] New post 31 Oct 2012, 22:03
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This looks like a paradox question. For this kind of question you're looking to identify a missing link or info that will correct the gap between the facts and the conclusion.

Facts are:
1) Tall tables and stools are replacing standard tables.
2) No other changes to seats, menus, etc.
Conclusion: All things being equal before and after change produce more profit.

Hm, so since this doesn't flow together you're looking for the answer that solve the question "Hows is this conclusion possible?

In this question, in particular, we're looking for a positive outcome (higher profits), so the answer choise that supports this will be the correct one.

A) Looks irrelevant. Taking less space does nothing to bring more revenue, since there is no other table or stool to occupy the vacant space. (this is just an example and not necessarily the case)
B) This answer choice looks promising. It says that diners take less time to finish their mean and go, which means that those tables are readily available sooner than they previously used to be. Serving more people within less amount of time guarantees profits at a higher rate, which favors the conclusion.
C) Bears no change to the conclusion that profit will be higher. I think it's also out of scope because it only talks about a small group of the customers, those that do not care about the change in the seating accommodations.
D) This weakens the conclusion, which we try to strengthen. Fewer customers means less revenue -> less profit.
E) If not worse, this only says that the change made has no positive or negative impact on the profits generated.

Hence, B.
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Re: Hollywood restaurant is replacing some of its standard table [#permalink] New post 01 Nov 2012, 04:43
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Long story told short.
B) If diners finish their meal earlier (on the stools), they will leave earlier, clearing space for other people to come and spend money. Thats how profits increase after the change :)
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Re: Hollywood restaurant is replacing some of its standard [#permalink] New post 25 Jan 2015, 07:49
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Re: Hollywood restaurant is replacing some of its standard [#permalink] New post 25 Jan 2015, 20:07
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Posting e-GMAT solution to this question
Quote:
Hi,

In this question, we need to find the best reason for the expectation.

Expectation: Revenue will increase

Constraints:

No change in menu, prices, or operating hours

No increase in seating capacity

Analysis of Option Statements

(A) One of the taller tables takes up less floor space than one of the standard tables. - Even if taller tables take less space, it is clearly given in the passage the seating capacity will not increase. So, there is advantage of less space occupying tables. Therefore, this does not provide a reason for increased revenues.

(B) Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables. - If this is true, then even with all the constraints, the restaurants will have more customers everyday. So, if previously, diners used to take 30 minutes, diners now take 20 minutes to eat. So, while in previous case, each table served 2 customers every hour, now every table serves 3 customers every hour. So, it provides a reason for increase in revenues. Correct.

(C) Since the restaurant will replace only some of its standard tables, it can continue to accommodate customers who do not care for the taller tables. - Irrelevant

(D) Few diners are likely to avoid the restaurant because of the new seating arrangement. - This provides a reason as to why the revenues should not fall but it does not provide any reason for expectation for increased revenues.

(E) The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense. - We are concerned with revenues, not costs. Irrelevant.

Hope this helps.

Thanks,
Chiranjeev

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Re: Hollywood restaurant is replacing some of its standard [#permalink] New post 28 Jan 2015, 23:26
Expert's post
Hi All,

In a CR, the conclusion gives you an end result that all of the other ideas must lead to. Here, we're told that replacing some standard tables with tall tables and stools will lead to an INCREASE IN EXPECTED REVENUE without anything else changing (every available seat is still filled, the menu/prices/hours will stay the same). We need an answer that would help to explain WHY the revenue would increase.

The correct answer offers a reason why more customers would be expected at the restaurant (remember that every seat gets filled with a customer).

Final Answer:
[Reveal] Spoiler:
B


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Re: Hollywood restaurant is replacing some of its standard   [#permalink] 28 Jan 2015, 23:26
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