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In order to promote long-term rental of its apartments, ARC

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In order to promote long-term rental of its apartments, ARC [#permalink] New post 17 Aug 2013, 22:29
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  45% (medium)

Question Stats:

58% (09:05) correct 42% (02:57) wrong based on 111 sessions
In order to promote long-term rental of its apartments, ARC Company offered a special 15 percent discount to all customers who have been renting ARC Company’s apartments for more than 2 years. After this innovation, a manager of ARC Company was surprised to notice that even though most of the company’s apartments had been rented for less than 2 years, most of the residents lived in apartments that were rented at discounted prices.

Which of the following, if true, would best help to explain the paradox above?
(A)On average, apartments that were rented at discounted prices were larger and more expensive to rent than apartments rented at full prices.
(B)The average number of people living in apartments rented at discounted prices was greater than the average number of people living in apartments rented at full price.
(C)Because of higher electricity and water bills, ARC Company was forced to raise rent on all its apartments by 5 percent.
(D)People who lived in several VIP apartments owned by ARC Company were not subject to the discount.
(E)All those who had been renting ARC apartments for more than 2 years chose to take advantage of the discount offer.


OA to follow ..
[Reveal] Spoiler: OA

Last edited by guerrero25 on 18 Aug 2013, 00:38, edited 1 time in total.
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Re: In order to promote long-term rental of its apartments, ARC [#permalink] New post 17 Aug 2013, 23:06
It seems like answer should be A - as other options are not just making sense over here..................They are just unrelated or not helping in resolving the Paradox situation.
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Re: In order to promote long-term rental of its apartments, ARC [#permalink] New post 17 Aug 2013, 23:58
I am not able to select any of the options simply because none of them are accounting for the premise in the argument here- that the discount was offered to people who had been renting the apartments for more than 2 years.
If I had a gun pointed to my head and had to guess and move on, I would have gone with B.

Can you tell us what is the source of this question?
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Re: In order to promote long-term rental of its apartments, ARC [#permalink] New post 18 Aug 2013, 00:41
Here is the OA
Explanation: The paradox above is that even though most apartments of ARC Company have been rented for less than 2 years and therefore were not discounted, most residents lived in discounted apartments. This information does not seem surprising if, as stated in Choice B, the average number of people living in apartments rented at discounted prices was greater than the average number of people living in apartments rented at full price. This statement shows that even though fewer apartments were rented at discounted prices than at full prices, it could be true that more people lived in apartments rented at discounted prices than in apartments rented at full prices.

A) The fact that apartments rented at discounted prices are bigger and more expensive does not explain why most people live in ARC apartments rented at discounted prices, even though most ARC apartments were rented at full prices.

B) Correct. This statement best explains the paradox in the argument above.

C) The argument is concerned with full and discounted rent prices; the size of those prices is not relevant.

D) This information, if anything, strengthens the paradox, as it was stated that most apartments were rented for less than two years. If VIP apartments were among those rented for less than two years, then this information is not relevant, as they would not be subject to the discount anyway. If VIP apartments were rented for more than 2 years, then even fewer of the apartments that were rented for more than 2 years are subject to the discount. In this case, it is even more surprising that most people who live in ARC apartments live in apartments rented at discounted prices.

E) This information is not important since it is still true that most apartments are rented at full prices but more people live in apartments rented at discounted prices.
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Re: In order to promote long-term rental of its apartments, ARC [#permalink] New post 18 Aug 2013, 04:09
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Ah! What a clever little question this is as it tries to confound you with 2 different words - 'customers' & 'residents'. So, the apartments are up for discount to 'customers' who have been renting them for more than 2 years. But the premise that is given is 'most of the residents lived in apartments that were rented at discounted prices'. Key word here is 'residents'. So a 'customer' is just one person for who the renting agreement is drawn for. That 'customer' might have family of more than 1 person, and therefore there would exist multiple residents for the same apartment. The only option that resolves the paradox is option B which states that the larger average number of residents for the discounted apartments as compared to the average number of residents for non-discounted apartments is the reason for the same.

Hope this helps!
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Re: In order to promote long-term rental of its apartments, ARC [#permalink] New post 30 Aug 2013, 20:42
solerenegade wrote:
Ah! What a clever little question this is as it tries to confound you with 2 different words - 'customers' & 'residents'. So, the apartments are up for discount to 'customers' who have been renting them for more than 2 years. But the premise that is given is 'most of the residents lived in apartments that were rented at discounted prices'. Key word here is 'residents'. So a 'customer' is just one person for who the renting agreement is drawn for. That 'customer' might have family of more than 1 person, and therefore there would exist multiple residents for the same apartment. The only option that resolves the paradox is option B which states that the larger average number of residents for the discounted apartments as compared to the average number of residents for non-discounted apartments is the reason for the same.

Hope this helps!


Good explanation. I thought of a similar logic and over and above that, none of the other choices seemed to be directly linked.
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Re: In order to promote long-term rental of its apartments, ARC   [#permalink] 30 Aug 2013, 20:42
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