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

 It is currently 28 Oct 2016, 11:35

# GMAT Club Live:

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Investing in real estate would be a profitable venture at

Author Message
TAGS:

### Hide Tags

Director
Joined: 29 Jul 2006
Posts: 874
Followers: 3

Kudos [?]: 99 [0], given: 0

Investing in real estate would be a profitable venture at [#permalink]

### Show Tags

30 Jun 2007, 08:06
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

Investing in real estate would be a profitable venture at this time. A survey in House magazine revealed that 85% of the magazineâ€™s readers are planning to buy a second home over the next few years. A study of the real estate industry, however, revealed that the current supply of homes could only provide for 65% of that demand each year.

Which of the following, if true, reveals a weakness in the evidence cited above?

(A) Real estate is a highly labor-intensive business.

(B) Home builders are not evenly distributed across the country.

(C) The number of people who want second homes has been increasing each year for the past ten years.

(D) Readers of House magazine are more likely than most people to want second homes.

(E) House magazine includes articles about owning a second home as well as articles about building a second home.

First I know the only possible answer through elimination is D
I know this has been discussed before, but I just seem to figure out why logically the correct answer is D!

According to me D strengthens the evidence.
Reasoning
1. Assume 500 people in this world
2. Assume 100 people read this magazine
3. 85% of the magazine readers want a second house = 85 people want a new house
4 therefore currently there is a demand for 85 houses
5 houses that can be currently supplied is only 65% of 85 houses , approx 55 houses.
6. So if i want to start a real estate business I know all my houses are going to get sold because there is demand for 85 houses whereas the supply is only 55.

Now what D says is that the magazine readers are most likely to buya second home than the others. Doesn't this strengthen the evidence?
Manager
Joined: 17 May 2007
Posts: 179
Followers: 1

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

### Show Tags

30 Jun 2007, 10:19
I will go for D here.

Here the question "...is the following, if true, reveals a weakness in the evidence cited above?"

In D, it is clearly mentioned that reader are more likely than the people who want to buy second house.

But in the statement it was assumed that all the reader are inerested in buying when compared to the availability of 65%

If D is correct then it weakens the assumption.
Director
Joined: 29 Jul 2006
Posts: 874
Followers: 3

Kudos [?]: 99 [0], given: 0

### Show Tags

01 Jul 2007, 11:46
Hi vay...Do you mean that the readers are just interested in wanting and not buying a new house??...only in that case the argument is weakened...
Director
Joined: 29 Jul 2006
Posts: 874
Followers: 3

Kudos [?]: 99 [0], given: 0

### Show Tags

01 Jul 2007, 11:47
Hi vay...Do you mean that the readers are just interested in wanting and not buying a new house??...only in that case the argument is weakened...
Similar topics Replies Last post
Similar
Topics:
1 Investing in real estate would be a profitable venture at 8 05 May 2010, 23:56
Investing in real estate would be a profitable venture at 4 16 Jul 2008, 00:13
Investing in real estate would be a profitable venture at 3 08 Feb 2008, 06:22
Investing in real estate would be a profitable venture at 4 29 Jun 2007, 10:20
Investing in real estate would be a profitable venture at 2 16 Mar 2007, 16:17
Display posts from previous: Sort by