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Now is an excellent time to invest in the catering business.

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Now is an excellent time to invest in the catering business. [#permalink] New post 25 Dec 2010, 11:02
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

27% (01:30) correct 72% (01:22) wrong based on 11 sessions
Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.
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Re: Catering business [#permalink] New post 25 Dec 2010, 11:19
E is definitely more straightforward than B and therefore my answer.
OA
[Reveal] Spoiler:
E

Last edited by Mackieman on 25 Dec 2010, 12:24, edited 2 times in total.
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Re: Catering business [#permalink] New post 25 Dec 2010, 12:14
suhi wrote:
Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.



E is the best answer. Only 35% (half of 70% of the readers) are likely have a catered wedding reception. But current supply rate is 55% of all the weddings. More supply than demand. So bad investment advice. Also the Weddings magazine does not necessarily cover 100% of the couples who had wed last year or who are going to wed the following year. E, the best choice. Pretty straight forward , I think. Any thoughts??
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Re: Catering business [#permalink] New post 25 Dec 2010, 14:43
E: Only half of those who say they want a catered wedding reception actually have one. this means 35% have the desire of catering business. So for this 35% the likelihood of getting catering order per person increases compared with the whole 70%. therefore in such case, the investment should be more attractive..thus, the invst advice can not be undermined.

B: Approximately a quarter of all weddings take place without a reception. in this situation, the likelihood decreases since demand to get orders are higher than that actually can be obtained. so invesment advice is undermined.

Thus B is the ans. is my explanation Ok?

please post the OA whoever has got the actual source of this question.
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Re: Catering business [#permalink] New post 25 Dec 2010, 19:31
suhi wrote:
E: Only half of those who say they want a catered wedding reception actually have one. this means 35% have the desire of catering business. So for this 35% the likelihood of getting catering order per person increases compared with the whole 70%. therefore in such case, the investment should be more attractive..thus, the invst advice can not be undermined.

B: Approximately a quarter of all weddings take place without a reception. in this situation, the likelihood decreases since demand to get orders are higher than that actually can be obtained. so invesment advice is undermined.

Thus B is the ans. is my explanation Ok?

please post the OA whoever has got the actual source of this question.


For choice E, see my comments below.

Assuming 10% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 10% of "soon to be married's"
(eg) No. of "soon to be married's" = 10% x 1000 = 100
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 100 = 70
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 70 = 35
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 35. SO THIS IS BAD ADVICE.

Assuming 90% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 90% of "soon to be married's"
(eg) No. of "soon to be married's" = 90% x 1000 = 900
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 900 = 630
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 630 = 315
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 315. SO THIS IS BAD ADVICE.

This is how I worked it. Let me know if you feel this is incorrect.

Thanks

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Re: Catering business [#permalink] New post 25 Dec 2010, 21:20
suhi wrote:
Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.


I would like to go with B.

As we know A,C,D are irrelevant. So, we are only left with B and E.
The problem with E is that it's not mentioned in the statement as to why only half of the marriages are the catered one. Maybe, the people who say they want catering might not be actually able to get it because of lack of caterers. So, this statement can actually strengthen the conclusion that since the present number of caterers are only able to serve half of the required marriages, investing in this business would be a good option because of its high demand.

Hence, we are only left with Option B.

Experts, pls let me know if i stand wrong.
Thnx.
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Re: Catering business [#permalink] New post 25 Dec 2010, 21:48
Dravidian wrote:
suhi wrote:
E: Only half of those who say they want a catered wedding reception actually have one. this means 35% have the desire of catering business. So for this 35% the likelihood of getting catering order per person increases compared with the whole 70%. therefore in such case, the investment should be more attractive..thus, the invst advice can not be undermined.

B: Approximately a quarter of all weddings take place without a reception. in this situation, the likelihood decreases since demand to get orders are higher than that actually can be obtained. so invesment advice is undermined.

Thus B is the ans. is my explanation Ok?

please post the OA whoever has got the actual source of this question.


For choice E, see my comments below.

Assuming 10% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 10% of "soon to be married's"
(eg) No. of "soon to be married's" = 10% x 1000 = 100
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 100 = 70
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 70 = 35
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 35. SO THIS IS BAD ADVICE.

Assuming 90% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 90% of "soon to be married's"
(eg) No. of "soon to be married's" = 90% x 1000 = 900
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 900 = 630
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 630 = 315
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 315. SO THIS IS BAD ADVICE.

This is how I worked it. Let me know if you feel this is incorrect.

Thanks


thanks .now get the problem. i got the question in a wrong way.
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Re: Catering business [#permalink] New post 26 Dec 2010, 19:03
krishnasty wrote:
suhi wrote:
Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.


I would like to go with B.

As we know A,C,D are irrelevant. So, we are only left with B and E.
The problem with E is that it's not mentioned in the statement as to why only half of the marriages are the catered one. Maybe, the people who say they want catering might not be actually able to get it because of lack of caterers. So, this statement can actually strengthen the conclusion that since the present number of caterers are only able to serve half of the required marriages, investing in this business would be a good option because of its high demand.

Hence, we are only left with Option B.

Experts, pls let me know if i stand wrong.
Thnx.


Since the question reads - "Which of the following, if true, would....." - each answer choice should be taken as true (part of the passage). If you look at it that way then the E would be the best choice.
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Re: Catering business [#permalink] New post 27 Dec 2010, 14:01
OA please
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Re: Catering business [#permalink] New post 04 Jan 2011, 07:29
There are other options available for Catering in las vegas ,,, But i want a faithfull one for mine sis wedding in Las Vegas Weddings
Re: Catering business   [#permalink] 04 Jan 2011, 07:29
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