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

It is currently 24 Oct 2014, 18:57

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

Studies in restaurants show that the tips left by customers

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 18 Aug 2007
Posts: 75
Followers: 1

Kudos [?]: 1 [0], given: 0

Studies in restaurants show that the tips left by customers [#permalink] New post 20 Oct 2007, 09:20
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds
the cash they have immediately available.

Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

A. The effect noted in the studies is not limited to patrons who have credit cards.

B. Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo.

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.

E. The percentage of restaurant bills paid with given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.


Would be great if someone can throw light on the POE that is to be use in these CR types.
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesGMAT Pill GMAT Discount Codes
Manager
Manager
avatar
Joined: 07 Sep 2007
Posts: 80
Followers: 1

Kudos [?]: 4 [0], given: 0

 [#permalink] New post 20 Oct 2007, 09:37
B.

If Crd make people tip more because it reminds them of exceed cash they have than the reverse would also be true. Having debt on Crd card makes them tip less.

Cause - effect relationship and answer B address the problem of effect - cause relation.
Senior Manager
Senior Manager
avatar
Joined: 06 Aug 2007
Posts: 370
Followers: 1

Kudos [?]: 22 [0], given: 0

Re: SET 23 Ques 31 - CR - Credit Card Logo [#permalink] New post 20 Oct 2007, 09:48
s_positive wrote:
Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds
the cash they have immediately available.

Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?
[/b]


B. Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo.

makes the most sense....if it has effect of greater spending power because their CC limit allows them too but what if you're maxed out your CC - the CC logo reminds you of the money you owe..
Re: SET 23 Ques 31 - CR - Credit Card Logo   [#permalink] 20 Oct 2007, 09:48
    Similar topics Author Replies Last post
Similar
Topics:
1 Studies in restaurants show that the tips left by customers cyrilmalaki 1 01 May 2010, 15:15
Studies in restaurants show that the tips left by customers mojorising800 2 22 Jan 2010, 12:31
Studies in restaurants show that the tips left by customers gurpreet07 6 02 Dec 2009, 11:15
2 Studies in restaurants show that the tips left by customers marcodonzelli 9 12 Jan 2008, 06:41
Studies in restaurants show that the tips left by customers adub35 9 14 Jun 2007, 14:18
Display posts from previous: Sort by

Studies in restaurants show that the tips left by customers

  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®.