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

It is currently 22 Oct 2014, 17:47

Going on right now!

Live Q&A Session with HKU Admissions Team | Join the chat room to participate.


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

Last year, of the reported thefts that occurred in shopping

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 24 Mar 2011
Posts: 467
Location: Texas
Followers: 4

Kudos [?]: 62 [0], given: 20

Last year, of the reported thefts that occurred in shopping [#permalink] New post 10 Jul 2011, 19:15
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

77% (03:03) correct 23% (02:41) wrong based on 8 sessions
Last year, of the reported thefts that occurred in shopping malls in Texas, the percentage that took place in digital electronic stores increased by two percent from the year before. Because most thefts do not result in the return of stolen goods, this increase likely resulted in a negative economic impact on these digital electronic stores that was greater than the impact that had been accounted for by their yearly budgets, for stores make predictions about the loss of money due to theft based on the number of thefts they recorded in the previous year.

Which of the following, if true, most seriously weakens the argument given?


1) People who steal and are not caught and forced to return the merchandise are likely to steal again.
2) The percentage of reported thefts in shopping malls in Texas that were from jewelry stores last year also increased.
3) Last year, of the total number of thefts from shopping malls across the United States, the percentage of thefts from shopping malls in Texas was lower than it had been the year before.
4) Merchandise stolen from digital electronics stores is generally more expensive than that stolen from other stores.
5) The number of total thefts that were reported in shopping malls in Texas last year was significantly lower than it has been in a decade.

CR is simple but some how i do not agree with OA.
1 KUDOS received
Current Student
avatar
Joined: 26 May 2005
Posts: 570
Followers: 18

Kudos [?]: 116 [1] , given: 13

Re: theft from electronic stores [#permalink] New post 10 Jul 2011, 22:46
1
This post received
KUDOS
agdimple333 wrote:
Last year, of the reported thefts that occurred in shopping malls in Texas, the percentage that took place in digital electronic stores increased by two percent from the year before. Because most thefts do not result in the return of stolen goods, this increase likely resulted in a negative economic impact on these digital electronic stores that was greater than the impact that had been accounted for by their yearly budgets, for stores make predictions about the loss of money due to theft based on the number of thefts they recorded in the previous year.

Which of the following, if true, most seriously weakens the argument given?


1) People who steal and are not caught and forced to return the merchandise are likely to steal again.
2) The percentage of reported thefts in shopping malls in Texas that were from jewelry stores last year also increased.
3) Last year, of the total number of thefts from shopping malls across the United States, the percentage of thefts from shopping malls in Texas was lower than it had been the year before.
4) Merchandise stolen from digital electronics stores is generally more expensive than that stolen from other stores.
5) The number of total thefts that were reported in shopping malls in Texas last year was significantly lower than it has been in a decade.

CR is simple but some how i do not agree with OA.


I think its E.
If the total number of thefts were significantly lower last year , all the shopkeepers would have budgeted their numbers based on the this exceptionally low %.
This clearly is wrong , and weakens the conclusion that increase in theft by 2% will translate into huge losses.

lets the average of threats = 10%
last year it was 5 %
if the shopkeeps budgeted on the basis of this 5%, then they are underestimating the impact.Its not the 2% increase that caused the drift in margins.
Manager
Manager
User avatar
Joined: 14 Mar 2011
Posts: 204
Followers: 6

Kudos [?]: 80 [0], given: 21

Re: theft from electronic stores [#permalink] New post 11 Jul 2011, 00:24
I think the answer should be E.

2 choices are close E and C- but C is wrong because even if percentage of thefts from texas as part of total theft of US might have decreased, still the number of thefts from texas could have increased or remained same. such situation is completely possible if overall number of thefts in us would have significantly increased last year.



E should be answer because if total theft decreased significantly last year, then 2 % increase in thefts in electronic stores can't be alarming.
Manager
Manager
User avatar
Joined: 14 Feb 2010
Posts: 161
Location: Banaglore
Followers: 0

Kudos [?]: 26 [0], given: 8

Re: theft from electronic stores [#permalink] New post 11 Jul 2011, 00:28
agdimple333 wrote:
Last year, of the reported thefts that occurred in shopping malls in Texas, the percentage that took place in digital electronic stores increased by two percent from the year before. Because most thefts do not result in the return of stolen goods, this increase likely resulted in a negative economic impact on these digital electronic stores that was greater than the impact that had been accounted for by their yearly budgets, for stores make predictions about the loss of money due to theft based on the number of thefts they recorded in the previous year.

Which of the following, if true, most seriously weakens the argument given?


1) People who steal and are not caught and forced to return the merchandise are likely to steal again.
2) The percentage of reported thefts in shopping malls in Texas that were from jewelry stores last year also increased.
3) Last year, of the total number of thefts from shopping malls across the United States, the percentage of thefts from shopping malls in Texas was lower than it had been the year before.
4) Merchandise stolen from digital electronics stores is generally more expensive than that stolen from other stores.
5) The number of total thefts that were reported in shopping malls in Texas last year was significantly lower than it has been in a decade.

CR is simple but some how i do not agree with OA.


I will go with E. This options hits the crux of the conclusion.
Intern
Intern
avatar
Joined: 20 Jul 2013
Posts: 13
Followers: 0

Kudos [?]: 9 [0], given: 308

Re: Last year, of the reported thefts that occurred in shopping [#permalink] New post 19 Oct 2013, 06:29
Very good question... Even, I didn't agree with OA... I re-read it many times and finally understood why the answer is E.

"Last year, of the reported thefts that occurred in shopping malls in Texas, the percentage that took place in digital electronic stores increased by two percent from the year before."

When I first read the above sentence, I interpreted it as:
Last year, the percentage of thefts that took place in digital electronic stores increased by two percent from the year before.

So, if in the previous year the number of thefts in digital elec stores was 100, then in the last year the number of such thefts is 102.

This interpretation is wrong. Observe the limiting modifier "of the reported thefts that occurred in shopping malls in Texas". The percentage is with respect to the total number of thefts.

The correct interpretation is:
Let us say in year 2012 the number of ALL thefts is 100 and the number of thefts in digital elec stores is 50. Hence, the percentage of thefts that took place in digital elec stores is 50%.

It is told in the passage that this percentage is greater by 2 compared to the previous year. So, if we assume that the previous year, 2011, also had same number of total thefts, then the number of thefts in digital elec stores should be 48.

The argument says that as the digital elec stores would have predicted the number of thefts to be 48, they will have an economic impact caused by the extra 2 thefts. Although, this is based on the assumption that the number of thefts in previous year is same as the last year.

Option E quashes this assumption. It says that the number of thefts in 2012 is lesser than the number of thefts in 2011.
In numerical terms:
If in the year 2011, the number of thefts was 200 and 48% of the thefts occurred in digital elec stores, then the number of thefts in digital elec stores is 96.
But in year 2012, the number of thefts was only 100 and 50% of those thefts occurred in digital elec stores. Hence the number of thefts in digital elec stores is 50.

So, the stores were anticipating 96 thefts but only 50 thefts occurred. Hence there is no economic impact to these stores.
Re: Last year, of the reported thefts that occurred in shopping   [#permalink] 19 Oct 2013, 06:29
    Similar topics Author Replies Last post
Similar
Topics:
4 Last year, two drownings occurred at Lake Serene, so this ezinis 16 12 Nov 2009, 06:23
Last year in a group of 30 businesses, 21 reported a net sumande 3 09 Aug 2007, 09:59
Last year in a group of 30 businesses, 21 reported a net Balvinder 1 01 Jul 2007, 06:58
Last year, two drownings occurred at Lake Serene, so this jdhar 13 17 May 2006, 18:25
Last year, two drownings occurred at Lake Serene, so this jdhar 18 17 May 2006, 18:21
Display posts from previous: Sort by

Last year, of the reported thefts that occurred in shopping

  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®.