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Politician: Since my administration has entered office, the

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Politician: Since my administration has entered office, the [#permalink] New post 06 Jun 2011, 00:14
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A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

42% (02:02) correct 57% (01:40) wrong based on 70 sessions
Politician: Since my administration has entered office, the percentage of people who are looking for work but are unable to find it has dropped from 7% to 5% of the total number of people either working or looking for work. These statistics show that it is clear that my administration’s business-friendly policies have helped reduce the level of unemployment among those willing to work.
Which of the following is an assumption on which the politician’s argument relies?



A. The previous administration’s worker re-education program had no significant effect on the unemployment rate.
B. Less than 2% of the population that were working or willing to work at the start of the politician’s term have stopped working or looking for work.
C. None of the new jobs created during the politician’s term went to those who already had jobs.
D. Most of those looking for employment found jobs in the field they were trained in.
E. The politician’s business-friendly policies have had a direct affect on the ability of firms to hire more workers


The answer given is B.I don't understand why....For example,say there are 100 ppl in the workforce(93 working,7 ppl willing to work but jobless)....The argument says this 7% unemployment rate goes down to 5%...There are many possible cases now....

Case 1:Nobody withdraws from the workforce
the split becomes (95 working,5 jobless) and this favor's the politician's stance.

Case 2:People withdraw from the workforce...here again we have 2 sub cases.
2.1. people who were working withdraw from the workforce.
In this case, the workforce (denominator)shrinks whereas the number of jobless people remains
unaffected....In such a case the unemployment rate definitely increases

2.2.Jobless people withdraw.
This is the case in question for this problem.In this case ,both the numerator and denominator decrease...I
am not very sure how a figure of 2% is arrived at whether the net effect of such a situation is always a
resultant decrease.In this case say 1 jobless person withdraws,we are left with 99 in the denominator and
5 (5% of 99 approx) in the numerator.This means there are 5 unemployed people and 94 employed
people.This is a desirable scenario compared to a (93,7) figure

Now, consider 3 jobless people withdrawing.....Now we have 97 people in the dnominator (5 unemployed,92
employed ...is this desirable or not??I am not sure....


Any help is welcome..

Regards,
Vignesh
[Reveal] Spoiler: OA
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Re: difficult CR question [#permalink] New post 26 Jun 2013, 21:14
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aceacharya wrote:
amit2k9 wrote:
There is a reasoning gap for the statistics mentioned in the argument here.Hence a supporter answer choice is needed.

Between A and B.

A gives a defender answer choice warding off external effect. POE.

B Out of 100 people looking for work, 7 not working old
out of 100 people looking for work, 5 not working new

negating - more than 2% people have stopped looking for work.

out of 97 people looking for work, 5 not working possible for the new condition.

This crashes the conclusion that the schemes have brought down the unemployment index.

Hence B here.


Sorry for reopening this old argument. But whats wrong with E
B seems to indicate that less than 2% for example 19 out of a 1000 people have dropped out of the work force and therefor the % of employed has improved but the actual number of people employed might not have increased.

So for the politician to claim credit for this improvement the actual numbers employed should have increased. Wouldnt option E be the assumption that the politician would make to supplement his claim

Or is it that GMAT considers all politicians to be statistic manipulators :evil:


Hi aceacharya

I'm glad to help.

Before answer you questions, please make sure you understand the fact correctly:

Fact: The percentage of people who are looking for work but are unable to find it has dropped from 7% to 5% of the total number of people either working or looking for work.
==> The formula is:
The ratio = Number of people are unable to find job/ [Number of people working + Number of people are looking for job]

The decrease from 7% to 5% only makes sense if The denominator [Number of people working + Number of people are looking for job] increases or does not change.
If the denominator decreases as well, The percentage decrease does not make any point.


E) The politician’s business-friendly policies have had a direct affect on the ability of firms to hire more workers
The firms hire more people ==> Number of people get hired increase. But what happens if many people looking for job STOP finding job or many people who are working QUIT their job ==> The denominator will decrease. Clearly, the reduction to 5% does not make any sense ==> E cannot be the assumption.


B) Less than 2% of the population that were working or willing to work at the start of the politician’s term have stopped working or looking for work.
B means the denominator DOES NOT DECREASE too much to make the percentage reduction be nonsensical.

You say “the % of employed has improved but the actual number of people employed might not have increased” is not correct. If the denominator decreases less than 2%, the number of people get hired must increase.

I will borrow your example:
There are 1000 people (working + looking job).
Before: 7% are unable to find job ==> number of people employed = 1000 – 70 = 930
After: 5% are unable to find job + 1.5% (less than 2%) stop looking for job ==> number of people employed = 1000 – 50 – 15 = 935

Hence, B is correct.

Hope it helps.
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Re: difficult CR question [#permalink] New post 08 Jun 2011, 12:58
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This so called CR question is more difficult that the most difficult word problem on percentages.
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Re: difficult CR question [#permalink] New post 06 Jun 2011, 01:07
There is a reasoning gap for the statistics mentioned in the argument here.Hence a supporter answer choice is needed.

Between A and B.

A gives a defender answer choice warding off external effect. POE.

B Out of 100 people looking for work, 7 not working old
out of 100 people looking for work, 5 not working new

negating - more than 2% people have stopped looking for work.

out of 97 people looking for work, 5 not working possible for the new condition.

This crashes the conclusion that the schemes have brought down the unemployment index.

Hence B here.
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Re: difficult CR question [#permalink] New post 08 Jun 2011, 07:18
I think the key to this question is the interpretation that all the percentages involved are with respect to the first year.....Pl correct me if I am wrong...
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Re: difficult CR question [#permalink] New post 08 Jun 2011, 09:15
what is wrong with A?
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Re: difficult CR question [#permalink] New post 26 Jun 2013, 18:52
amit2k9 wrote:
There is a reasoning gap for the statistics mentioned in the argument here.Hence a supporter answer choice is needed.

Between A and B.

A gives a defender answer choice warding off external effect. POE.

B Out of 100 people looking for work, 7 not working old
out of 100 people looking for work, 5 not working new

negating - more than 2% people have stopped looking for work.

out of 97 people looking for work, 5 not working possible for the new condition.

This crashes the conclusion that the schemes have brought down the unemployment index.

Hence B here.


Sorry for reopening this old argument. But whats wrong with E
B seems to indicate that less than 2% for example 19 out of a 1000 people have dropped out of the work force and therefor the % of employed has improved but the actual number of people employed might not have increased.

So for the politician to claim credit for this improvement the actual numbers employed should have increased. Wouldnt option E be the assumption that the politician would make to supplement his claim

Or is it that GMAT considers all politicians to be statistic manipulators :evil:
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Re: difficult CR question   [#permalink] 26 Jun 2013, 18:52
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