Studies in restaurants show that the tips left by customers : GMAT Critical Reasoning (CR)
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# Studies in restaurants show that the tips left by customers

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Intern
Joined: 14 Mar 2010
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Location: Lexington, KY
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Studies in restaurants show that the tips left by customers [#permalink]

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01 May 2010, 15:15
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85% (02:05) correct 15% (01:56) wrong based on 24 sessions

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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 simple seeing a credit card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the case 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 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 try with which the bill is presented.

Guys can you please explain this. I read the answer in OG but could not make much sense.
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Re: OG 12 Qusetion 94 [#permalink]

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02 May 2010, 13:06
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Im thinking this is cause and effect reasoning because it says that credit card logos cause people to spend more

So

Cc logo -> SPEC-> More tip ( spending power exceeds case)

The credit card logo causes people to think they have more spending power which in turn causes them to leave more tip.

So

we could strengthen the argument by showing
1.when the cause doesnt occur the effect does not occur
2. when the cause occurs the effect occurs
3. Eliminate alternative causes.
4. the relationship is not reversed.
5. good statistics

So lets look at the answer choices

A. Does not effect the relationship at all ( Whether you have a credit card or not is not problem with the study)
B. Is the right answer. ( when the cause does not occur the effect does not occur. When you are reminded that your spending power DOES NOT exceed you dont leave as big a tip.
C. If anything this answer might weaken the argument.
D. Does not effect the relationship in anyway.
E. Same As D ( irrelevant).
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Re: OG 12 Qusetion 94   [#permalink] 02 May 2010, 13:06
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