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Re: Spending on clothes in this country increased by 35% from 1970 to 1990 [#permalink]
Kinshook wrote:
Bunuel wrote:
Spending on clothes in this country increased by 35% from 1970 to 1990. Over the same period, however, revenue from clothing sales actually made instores, whether retail or wholesale, only increased by 20% and most of that increase took place in national chain departmental stores.

Based on the above statements, which of the following is the most reasonable conclusion about the period from 1970 to 1990

A. There was an increase in spending on clothes that were purchased thru alternate channels, such as thru the mail or over the phone.

B. Spending on clothes decreased in those stores that were not national chain department stores

C. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets.

D. Most of the increase in spending on clothing was the result of an increase in sales of high price items to a relatively small number of people.

E. Most of the clothing sales that did not take place in stores were made thru the mail order divisions of national department stores.



Spending on clothes in this country increased by 35% from 1970 to 1990. Over the same period, however, revenue from clothing sales actually made instores, whether retail or wholesale, only increased by 20% and most of that increase took place in national chain departmental stores.

There is a possibility that spending on clothes were done mostly through some other channel and not instores. That is why revenues are not equal to spendings for instores.

A. There was an increase in spending on clothes that were purchased thru alternate channels, such as thru the mail or over the phone.

B. Spending on clothes decreased in those stores that were not national chain department stores

C. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets.

D. Most of the increase in spending on clothing was the result of an increase in sales of high price items to a relatively small number of people.

E. Most of the clothing sales that did not take place in stores were made thru the mail order divisions of national department stores.


Both A & E seem correct since both mention alternative channels.
But E seems more reasonable.

IMO E


E cannot be correct because it is too absolute of a statement and we do not know which specific divisions the sales came from, only that they did not all come through instore. Therefore, A must be correct.
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Re: Spending on clothes in this country increased by 35% from 1970 to 1990 [#permalink]
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Spending on clothes in this country increased by 35% from 1970 to 1990. Over the same period, however, revenue from clothing sales actually made instores, whether retail or wholesale, only increased by 20% and most of that increase took place in national chain departmental stores. [This stimuli shows a paradox. The spending on clothes increased by 35% but the increase in instores revenue was only 20%. So, extra 15% revenue must have been accounted somewhere.]

Conclusion can be that the sales was not done totally through instores but through some other channels too.

Based on the above statements, which of the following is the most reasonable conclusion about the period from 1970 to 1990?

A. There was an increase in spending on clothes that were purchased thru alternate channels, such as thru the mail or over the phone. - Inline with our thinking. Lets keep it.

B. Spending on clothes decreased in those stores that were not national chain department stores - We cant infer this from the stimulus.

C. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets. - If this would have been the case, then the revenue would have been the same as was observed overall.

D. Most of the increase in spending on clothing was the result of an increase in sales of high price items to a relatively small number of people. - Cant infer this from stimulus anywhere

E. Most of the clothing sales that did not take place in stores were made thru the mail order divisions of national department stores. - This could be true but it becomes too definitive which becomes a problem.

Therefore, Answer A
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Spending on clothes in this country increased by 35% from 1970 to 1990 [#permalink]
Bunuel wrote:
Spending on clothes in this country increased by 35% from 1970 to 1990. Over the same period, however, revenue from clothing sales actually made instores, whether retail or wholesale, only increased by 20% and most of that increase took place in national chain departmental stores.

Based on the above statements, which of the following is the most reasonable conclusion about the period from 1970 to 1990

A. There was an increase in spending on clothes that were purchased thru alternate channels, such as thru the mail or over the phone.

B. Spending on clothes decreased in those stores that were not national chain department stores

C. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets.

D. Most of the increase in spending on clothing was the result of an increase in sales of high price items to a relatively small number of people.

E. Most of the clothing sales that did not take place in stores were made thru the mail order divisions of national department stores.



-------------------------------------------------------------------------------------------------

To draw the conclusion for the statements presented above, Most of the people must have picked up choices A and E, which answer the following questions:-

1) Why there was a difference between 35% raise in overall sales and 20% raise in the sales made through retail stores?
Answer- Choice A, which can be logically concluded.
2) Why sales in National chain stores increased?
Answer choice E, Which concludes that raise in sales in National departmental store chain is because of some other divisions. Still National stores were unable to boost their output to maximum 35%.

these thoughts made me incline toward answer choice A.
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Re: Spending on clothes in this country increased by 35% from 1970 to 1990 [#permalink]
1
Kudos
Spending on clothes in this country increased by 35% from 1970 to 1990. Over the same period, however, revenue from clothing sales actually made instores, whether retail or wholesale, only increased by 20% and most of that increase took place in national chain departmental stores.

Based on the above statements, which of the following is the most reasonable conclusion about the period from 1970 to 1990

Ok so there is an increase in spending by 35 pc but revenue from specific places are only 20%, what could be the reason


A. There was an increase in spending on clothes that were purchased thru alternate channels, such as thru the mail or over the phone.
Yea.. that is what i was thinking.. there should be some alternate channels from where the purchase must have been made. Contender

B. Spending on clothes decreased in those stores that were not national chain department stores
Incorrect answer

C. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets.
I dont care - Total amount of spending is what i care for - Out of scope

D. Most of the increase in spending on clothing was the result of an increase in sales of high price items to a relatively small number of people.
Again out of scope as C

E. Most of the clothing sales that did not take place in stores were made thru the mail order divisions of national department stores.[/quote]
Yeah that is Okay, but isnt the mail order division is part of national department store and that part of instores..

A is correct
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Re: Spending on clothes in this country increased by 35% from 1970 to 1990 [#permalink]
The only problem here is in the last sentence " the national chain department stores ” even choice A didn't explain anything about that sentence

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Re: Spending on clothes in this country increased by 35% from 1970 to 1990 [#permalink]
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Re: Spending on clothes in this country increased by 35% from 1970 to 1990 [#permalink]
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