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In January 1992, the Sylvanic Exterminator Service of Salem

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In January 1992, the Sylvanic Exterminator Service of Salem [#permalink] New post 13 Jul 2011, 05:14
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A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

52% (02:49) correct 48% (01:21) wrong based on 151 sessions
In January 1992, the Sylvanic Exterminator Service of Salem County began a new service concentrating on the removal of bats, rats, and mice. Revenue increased twofold by the end of the year. However, since 1991 more people in Salem County have been taking care of their extermination problems on their own, and the extermination industry’s revenues have been dropping because of it. Sylvanic Exterminator Service has reported no such loss in revenue.

Which one of the following statements, if true, would best explain the above paradox?


A]The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since.

B]In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998.

C]People would rather take care of the pest problems themselves because it is less expensive.

D]The bat, rat, and mouse populations of Salem County have increased significantly since 1991.

E] The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.
[Reveal] Spoiler: OA
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Re: CR [#permalink] New post 13 Jul 2011, 17:45
Clear E. Only other choice worth considering is D. However E is a clear winner as it explains the paradox.

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Re: CR [#permalink] New post 13 Jul 2011, 20:07
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The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since. which means that the revenue hadnt actually doubled? But that is in contradiction with an assertion in the stem. incorrect
In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998. a debt will not really have any effect on revenues. and upgrading sprayers cannot explain how Sylvanic doubled its revenues, if people have started doing extermination themselves, then it will be a big leap to assume that just because Sylvanic has upgraded sprayers, people preferef it to other exterminators/ themselves

People would rather take care of the pest problems themselves because it is less expensive. that just gives a reason for an assertion in the stem. doesnt explains why Sylvanic's revenues are still high

The bat, rat, and mouse populations of Salem County have increased significantly since 1991. that might mean the need for more extermination, especially the kind which sylvanic started as a new service. howeevr do these two factors together say that this extermination was actually done by Sylvanic only? population has increased, sylvanic starts a service to control it - but that is no guarantee that people will hire sylvanic to do it- they can still continue to do it themselves

The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.this clearly mentions that this new service got Sylvanic extra revenues as compared to others, and compensated for the loss of revenue it faced (just like the industry) in other types of extermination because people started doing it themselves. this takes care of all the conditions of the argument and still explains the paradox
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Re: CR [#permalink] New post 14 Jul 2011, 00:17
E is the only choice available which explains why there is no revenue loss for the company.
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Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink] New post 14 Nov 2013, 02:54
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Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink] New post 19 Sep 2014, 06:35
The problem I see here with E is that if more people do their pest control on their own, and all other companies are experiencing losses, we still don't have an explanation as how the services are still making money....
Anyone help with that?
Re: In January 1992, the Sylvanic Exterminator Service of Salem   [#permalink] 19 Sep 2014, 06:35
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In January 1992, the Sylvanic Exterminator Service of Salem

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