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saurya_s wrote:
Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.

Sharon: But a normal, moderate level of unemployment is 5 percent, with 1 out of 20 workers unemployed. So at any given time if a person knows approximately 50 workers, 1 or more will very likely be unemployed.

Sharon's argument relies on the assumption that


(A) normal levels of unemployment are rarely exceeded

(B) unemployment is not normally concentrated in geographically isolated segments of the population

(C) the number of people who each know someone who is unemployed is always higher than 90% of the population

(D) Roland is not consciously distorting the statistics he presents

(E) knowledge that a personal acquaintance is unemployed generates more fear of losing one's job than does knowledge of unemployment statistics



Roland is concerned --- 90% of people in the country know someone who is unemployed, and Roland apparently takes this as evidence that unemployment is high. This is a somewhat bogus argument. Sharon raises what is at root a very sensible objection --- because 90% know someone who is unemployed does not necessarily mean the unemployment rate is high. I'm going to guess that the vast majority of the population, almost everyone, personally knows someone over the age of 80 --- this doesn't mean that the majority of the population is over 80, but just that there are enough 80+ year olds distributed in the population densely enough that virtually everyone knows at least one person like this.

Sharon's argument is essentially a probabilistic argument --- if every person knows 50 people, then if 5% = 0.05 = 1/20 of all people are unemployed, then there's a very high chance that of the 50 random folks one person knows, at least one of them is unemployed. One subtle thing about this argument --- this argument works well if 1/20 is a true probability, that is, if we can pick essentially any group of fifty people, and the probability that any one person is unemployed is 1/20, and this probability is more or less constant as we look at different groups of 50. If the probability is not fixed --- if it's higher in some places and lower in other places --- then that changes the nature of the argument.

Suppose, for simplicity, the entire country consists of just ten cities, with small and equal populations. Suppose people know each other well within each city, but essentially no one from one city knows any one from any other city. (This is a highly unrealistic scenario, just to demonstrate the logic.)
SCENARIO #1: 5% of the people in each of the cities are unemployed --- then, most people in each city would know someone unemployed. Because there's an even distribution, about 90% or more of the population would know someone unemployed, even though only 5% of the population is unemployed. This assumes more or less even distribution of the unemployed. This is consistent with Sharon's argument.
SCENARIO #2: Now, consider an extreme of population concentration --- 50% of the people in City #1 are unemployed, and everyone in the other nine cities are fully employed. Here, everyone in City #1 would know someone unemployed, but City #1 is only 10% of the population. Assume the folks in different cities don't know each other, so no one else know the unemployed in City #1. Thus, 5% of the population is unemployed, and only 10% of the population knows someone unemployed.
In other words, if the unemployed are more-or-less evenly distributed in the population, that is, if we could go anywhere, any region or any subgroup of the population, and the probability that any single person is unemployed is about 5%, then we could have only 5% unemployment but a very high percentages, maybe 90%, who know someone who is unemployed: again, this is essentially Sharon's argument. BUT, if the unemployed are not even distributed, and are instead concentrated geographically in particular places, then Sharon's argument would no longer be valid.

That's why (B) is an excellent answer, the best answer for this question.

Does this make sense?
Mike :-)
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A.

I am getting this by process of elimination.

(B) unemployment is not normally concentrated in geographically isolated segments of the population -- Geographical isolation is not discussed in the argument.

(C) the number of people who each know someone who is unemployed is always higher than 90% of the population -- General statement

(D) Roland is not consciously distorting the statistics he presents
-- This is not the assumption

(E) knowledge that a personal acquaintance is unemployed generates more fear of losing one's job than does knowledge of unemployment statistics -- General statement
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should be B.

to know the unemplyoment of 5% by 90%, the unemplyoed people should be disperse all over the countr/nation/state/ or whatewver.
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Will go with B.
Roland argues that 90% of people report that they know somebody unemployed. Whereas Sharon argues that the unemployment rate is only 5%. Hence if a person know 50 other persons..... one of them could be unemployed.
Now she is assumping that unemployement is not present in specific areas and is spread out to different geographical regions such that people are acquainted with different class of people.
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Re: Roland: The alarming fact is that 90 percent of the people in this cou [#permalink]
:?: Still not sure what the core point is? Can someone elaborate?
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haas_mba07 wrote:
:?: Still not sure what the core point is? Can someone elaborate?


Roland is freakin out that 90% of the people in Xanadu know someone in that country who is unemployed.

Sharon is asking Roland to chill out because that stat presented by Roland means that normal, moderate level of unemployment is 5 percent, with 1 out of 20 workers unemployed. So, if a resident of Xanadu knows 20 people, 1 of them will most likely be unemployed.

Now this is only possible if the unemployed people are scattered evenly across the country.

Thats what I made out of it :)
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nitindas wrote:
Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.
Sharon: But a normal,moderate level of unemployment is 5 percent,with 1 out of 20 workers unemployed.So at any given time if a person knows approximately 50 workers,1 or more will very likely to be unemployed.

Sharon's argument relies on the assumption that
1. normal levels of unemployment are rarely exceeded.
2. unemployment is not normally concentrated in geographically isolated segments of population.
3. the number of people who each know someone who is unemployed is always higher than 90% of the population.
4. Roland is not consciously distorting the statistics he presents
5. knowledge that a personal acquaintance is unemployed generates more fear of loosing one's job than does knowledge of unemployment statistics


It should be B. Imagine you have the following situation:

a town of 50,000 has 100% unemployment, and no one in this town speaks to anyone else in the country
the other 950,000 people in the country, or 95% of the population, all have jobs

Then only 5% of your population would know anyone who was unemployed - the 5% in the isolated town full of unemployed people. Sharon's argument assumes that unemployment is spread fairly equally across the population.
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Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.

Sharon: But a normal, moderate level of unemployment is 5 percent, with 1 out of 20 workers unemployed. So at any given time if a person knows approximately 50 workers, 1 or more will very likely to be unemployed.

Sharon's argument relies on the assumption that

Explanation:
------------------------
1.) normal levels of unemployment are rarely exceeded. ---> Irrelevant.

2.) unemployment is not normally concentrated in geographically isolated segments of population. ---> When Sharon puts her point, she’s actually trying to say that if you ask any person (anywhere), he/she must be knowing someone (5% of acquaintances) who’s unemployed. This is based on the assumption stated in this option.

Had that not been the case, the argument would have fallen apart. If unemployed people are concentrated in specific regions, then only the residents of that region will be aware of the unemployed people.

3.) the number of people who each know someone who is unemployed is always higher than 90% of the population.
---> She is nowhere trying to assume this.

4.) Roland is not consciously distorting the statistics he presents ---> This option states that Roland is actually distorting the fact (though not consciously) but we cannot conclude this from their conversation. In fact, Sharon is not disagreeing with Roland’s stats. Anyways, this is not the assumption she relies on.

5.) knowledge that a personal acquaintance is unemployed generates more fear of loosing one's job than does knowledge of unemployment statistics ---> Irrelevant.
------------------------

I too go for option 2.


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Hi,

Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.
Sharon: But a normal, moderate level of unemployment is 5 percent, with one out of 20 workers unemployed. So at any given time if a person knows approximately 50 workers, one or more will very likely be unemployed.

Sharon's argument relies on the assumption that
(A) normal levels of unemployment are rarely exceeded
(B) unemployment is not normally concentrated in geographically isolated segments of the population
(C) the number of people who each know someone who is unemployed is always higher than 90 percent of
the population
(D) Roland is not consciously distorting the statistics he presents
(E) knowledge that a personal acquaintance is unemployed generates more fear of losing one's job than does
knowledge of unemployment statistics


Explanation: Roland: It is a fact that- 90% of people of the country know someone who is unemployed.
Sharon: contradicts Roland's statement and says that average level of the unemployment of the country is 5%, with 1/20 is unemployed.
Conclusion of Sharon: so if a person knows 50 workers then at least one will be unemployed.

Assumption: More known people --> More number of unemployed people

A. OFS- we are not stated about the increase or decrease of unemployment.
B. Unemployment is for the country population, not just about the geographically isolated segments of the population- correct
C. always hight- extreme words- wrong
D. We are ask about Sharon's conclusion not of Roland's statement.
E. OFS

B: New Information, support the conclusion
But I am not understanding how to negate it. Means if i negate it like this: unemployment is normally concentrated in geographically isolated segments of the population,
then how can we connect it with conclusion?

Regards,
Mugdha.
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PiyuMu wrote:
Hi,

Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.
Sharon: But a normal, moderate level of unemployment is 5 percent, with one out of 20 workers unemployed. So at any given time if a person knows approximately 50 workers, one or more will very likely be unemployed.

Sharon's argument relies on the assumption that
(A) normal levels of unemployment are rarely exceeded
(B) unemployment is not normally concentrated in geographically isolated segments of the population
(C) the number of people who each know someone who is unemployed is always higher than 90 percent of
the population
(D) Roland is not consciously distorting the statistics he presents
(E) knowledge that a personal acquaintance is unemployed generates more fear of losing one's job than does
knowledge of unemployment statistics


Explanation: Roland: It is a fact that- 90% of people of the country know someone who is unemployed.
Sharon: contradicts Roland's statement and says that average level of the unemployment of the country is 5%, with 1/20 is unemployed.
Conclusion of Sharon: so if a person knows 50 workers then at least one will be unemployed.

Assumption: More known people --> More number of unemployed people

A. OFS- we are not stated about the increase or decrease of unemployment.
B. Unemployment is for the country population, not just about the geographically isolated segments of the population- correct
C. always hight- extreme words- wrong
D. We are ask about Sharon's conclusion not of Roland's statement.
E. OFS

B: New Information, support the conclusion
But I am not understanding how to negate it. Means if i negate it like this: unemployment is normally concentrated in geographically isolated segments of the population,
then how can we connect it with conclusion?

Regards,
Mugdha.


Hi Mate,

In assumption questions negation technique is very useful and if you want to succeed in the assumption questions you should learn the assumption very well.
This is how the negation technique works.
All people will be going to football match……Negate it….you will get….Not all people will be going to football match. Now here not all means not all…there is a difference between not all and none.
Suppose there are 100 people then not all mean not all the 100 or may be 99 may be 98 or 95 or 10 but not all 100….but none means definitely 0.

So in the argument above as B is the correct answer. What does B says:
unemployment is not normally concentrated in geographically isolated segments of the population
If you negate this you will get….unemployment is not normally concentrated in geographically isolated segments of the population…..
now what does this negation means. If all the unemployed people are concentrated in one town or one patch of the area then sharon's argument will shatter. How? Well this is how….If all the unemployed people are concentrated only in city A and in city B there are No unemployed people then in city B if a person knows approximately 50 workers, one or more will not very likely be unemployed. So people in city A will know someone one or more people who are unemployed but in city B it won't be true. So sharon is assuming that people are distributed randomly and are not concentrated in one area.

Let me know if this makes sense.
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Here as per Sharon's argument.

She says that since the country's unemployment rate is at 5 percent, any person in the country who knows at least 50 other people. will know at least some unemployed person - Meaning that there is no way that all these 50 people are employed. And it assumes that this rule applies equally for the whole country.

But maybe one part of the country has a very high unemployment rate and the other part doesn't have any unemployment at all. If all the people a person knows are from the region that is doing well then there is a possibility that all the 50 are employed.

Option B says this. The argument assumes that the unemployement rate is equal for everyone and it is not concentrated in certain regions and not in others.
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GMAT is about pattern recognition.
The argument relies on statistics presented by two opponents.
Roland said something is Alarming.
Sharon's argument is: Hei Roland that's not really alarming.
Both guys based their opinions on statistical facts.

Whenever you see arguments based on statistics facts, as u already know, the validity of the conclusion is weakened if it is shown that the statistics is spurious or dubious.
Lack of Structural Stability of data or statistics makes a statistical result unreliable. I.e if the average doesn't closely show what's happening in MOST data points, the result is unreliable. In another language, a data that skews badly off its mean will make the mean result unreliable. e.g if the average of a set of numbers is 5, that average will be more reliable if the numbers are (3, 4, 5, 6, 7) or (4,4,5,6,6) than if the numbers are (0, 0, 0, 12, 13) or (1, 1, 2, 10, 11).
each has average of 5.

Assume the numbers above represent unemployment rates in 5 cities)
In the two later sets the high or alarming numbers are concentrated at some cities.
Even though all sets show that the national unemployment rate is 5 which is Normal, It is alarming in some places.

Some macroeconomic indicators rely on arthmetic average.
But the trouble with arithmetic averages is already known.
It doesn't show you what's happening in the whole country.

Option B therefore defends Sharon's point from a most potent weakener: unreliable statistics, Abnormally distributed data. etc


Always bear in mind that CR questions involving data or statistics will test simple knowledge of validity of statistics anytime.
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Re: Roland: The alarming fact is that 90 percent of the people in this cou [#permalink]
Why isn't option A right. Isn't Sharon assuming that Option A (normal levels of unemployment are rarely raised).

Also, I didn't get the relation between one in 20 and one in 50 people. How are these two related? Though It is slightly clearer on how Sharon assuming option B to make that statement, Option A could also be true.

please explain
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balaji4799 wrote:
Why isn't option A right. Isn't Sharon assuming that Option A (normal levels of unemployment are rarely raised).

Also, I didn't get the relation between one in 20 and one in 50 people. How are these two related? Though It is slightly clearer on how Sharon assuming option B to make that statement, Option A could also be true.

please explain


I found the following excerpt while going through my preparation notes:

correct B: negate this one and you get:
unemployment is normally concentrated in geographically isolated segments of the population
What is the implication of the above? If unemployment is concentrated in certain areas, how can we say that if someone who knows 50 persons will very likely know more than 1 person who is unemployed?
Let's take a simple number example. Country A has two cities: X and Y
City X: population = 100 --> 10 are unemployed
City Y: population = 100 --> 0 are unemployed
Total unemployment rate for country A: 10/200 = 5% --> as claimed by Sharon
As you can see in my example, unemployment is concentrated in a geographical location: city X
Hence, if that someone who Sharon is talking about lives in city Y, is it right to say that that person is likely to know more than one person who is unemployed? No, because that person lives in a city where there is no unemployment whatsoever.
Conclusion: We need to assume that unemployment is not isolated in geographically isolated segments of the population. If not, the argument falls apart.


As for A: Sharon just states the normal level of unemployment. There is nothing in her statement that indicates that she assumes that the normal levels are exceeded (or they don't).
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Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.

Sharon: But a normal, moderate level of unemployment is 5 percent, with one out of 20 workers unemployed. So at any given time if a person knows approximately 50 workers, one or more will very likely be unemployed.

Sharon’s argument relies on the assumption that

(A) normal levels of unemployment are rarely exceeded
THis answer choice strengthens the claim by sharon,but the claim is not based on this fact.Also even if the unemployment level are not exceeded then the claim will still be valid.
(B) unemployment is not normally concentrated in geographically isolated segments of the population
This is the correct answer choice since if the unemployment population was concentrated in one region then the correct slection of the sample space of the sample data will never be accurate.The correctness of the claim can only be measured if the unemplyed people are equally distributed.
(C) the number of people who each know someone who is unemployed is always higher than 90 percent of the population
The choice is incorrect first because it uses a very stong work 'always' which can be avoided in such questions and second even if the 90 is not exceeded the calim will still be valid at 90%.
(D) Roland is not consciously distorting the statistics he presents
no such indication ,also the data given by roland is appropriate
(E) knowledge that a personal acquaintance is unemployed generates more fear of losing one’s job than does knowledge of unemployment statistics
out of scope.
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Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.

Sharon: But a normal, moderate level of unemployment is 5 percent, with 1 out of 20 workers unemployed. So at any given time if a person knows approximately 50 workers, 1 or more will very likely be unemployed.

Sharon's argument relies on the assumption that

(A) normal levels of unemployment are rarely exceeded
(B) unemployment is not normally concentrated in geographically isolated segments of the population
(C) the number of people who each know someone who is unemployed is always higher than 90% of the population
(D) Roland is not consciously distorting the statistics he presents
(E) knowledge that a personal acquaintance is unemployed generates more fear of losing one's job than does knowledge of unemployment statistics

My take -

First lets identify the conclusion for this question. Question asks to find the assumption of Sharon's argument.

Conclusion - At any given time if a person knows approximately 50 workers, 1 or more will very likely be unemployed.
or At any given time if a person knows approximately 50 workers, at least one will very likely be unemployed.

Any of the options which support the negation of the above argument, that is will actually break the above argument. Will be the answer.
Negation of Conclusion - At any given time if a person knows approximately 50 workers, none will very likely be unemployed.

(B) Negated - unemployment is normally concentrated in geographically isolated segments of the population.
It supports the negation of conclusion above. At any given time if a person knows approximately 50 workers, none will very likely be unemployed. Because all the unemployed people are normally concentrated on a geographically isolated segments of the population. So, no one knows of these geographically isolated unemployed people. Thus, B is the correct answer.

The image attached clears the option B in more detail. Please let me know, if someone has still any doubt on this question.
Attachments

CR-Roland-Sharon.PNG
CR-Roland-Sharon.PNG [ 37.64 KiB | Viewed 97450 times ]

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Re: Roland: The alarming fact is that 90 percent of the people in this cou [#permalink]
What should be the approach to the question?
the options are really ambiguous for me to understand.
Please explain in detail.
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