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

It is currently 22 Aug 2014, 01:53

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
User avatar
Status: Its Wow or Never
Joined: 11 Dec 2009
Posts: 208
Location: India
Concentration: Technology, Strategy
GMAT 1: 670 Q47 V35
GMAT 2: 710 Q48 V40
WE: Information Technology (Computer Software)
Followers: 5

Kudos [?]: 44 [0], given: 7

GMAT Tests User
Studies in restaurants show that the tips left by customers [#permalink] New post 22 Jan 2010, 12:31
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

45% (02:49) correct 55% (01:38) wrong based on 9 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 fi nancial pressure from their credit-card obligations tend to tip less when presented
with a restaurant bill on a tray with a 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 a given brand of credit card increases when that credit card’s
logo is displayed on the tray with which the bill is presented.
[Reveal] Spoiler:
B

_________________

---------------------------------------------------------------------------------------
If you think you can,you can
If you think you can't,you are right.


Last edited by mojorising800 on 24 Jan 2010, 10:44, edited 1 time in total.
Senior Manager
Senior Manager
avatar
Joined: 16 Apr 2009
Posts: 341
Followers: 1

Kudos [?]: 46 [0], given: 14

GMAT Tests User
Re: Studies in restaurants show [#permalink] New post 23 Jan 2010, 15:51
My pic is B

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

If Patrons spends less when they are in financial pressure then it is certain that they spend more in normal scenarios
and hence , psychologist hypothesis is correct
_________________

Always tag your question

Senior Manager
Senior Manager
User avatar
Joined: 22 Dec 2009
Posts: 365
Followers: 10

Kudos [?]: 201 [0], given: 47

GMAT ToolKit User GMAT Tests User
Re: Studies in restaurants show [#permalink] New post 24 Jan 2010, 09:26
B....

Cause = Own a credit card
Effect = Pay higher tips as purchasing power increases (on seeing the logo)

Point B emphasis on this Cause Effect relation. If the financial pressure is high on the Credit Card holder, he would pay less tip if he/she sees the logo!
_________________

Cheers!
JT...........
If u like my post..... payback in Kudos!! :beer

|Do not post questions with OA|Please underline your SC questions while posting|Try posting the explanation along with your answer choice|
|For CR refer Powerscore CR Bible|For SC refer Manhattan SC Guide|


~~Better Burn Out... Than Fade Away~~

Re: Studies in restaurants show   [#permalink] 24 Jan 2010, 09:26
    Similar topics Author Replies Last post
Similar
Topics:
2 Studies in restaurants show that the tips left by customers sagarsabnis 9 22 Dec 2009, 12:34
9 Experts publish their posts in the topic Studies in restaurants show that the tips left by customers singh_amit19 17 29 Sep 2007, 11:47
Studies in restaurants show that the tips left by customers foolbox 5 05 Jun 2006, 20:53
Studies in restaurants show that the tips left by customers wild_desperado 4 15 Jun 2005, 02:46
Studies in restaurants show that the tips left by customers chunjuwu 6 16 Sep 2004, 16:30
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®.