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# Studies in the resturants show that the tips left by

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Studies in the resturants show that the tips left by [#permalink]

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23 May 2009, 09:26
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Studies in the restaurants show that the tips left by customers who pay their bill in cash tent 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 notes in the studies is not limited to patrons who have credit cards.
B) Patrons who are under financial pressure from their credit casd 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 posses s credit card.
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: OA
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Re: Studies in the resturants show that the tips left by [#permalink]

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23 May 2009, 11:15
I would say E or B.

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Re: Studies in the resturants show that the tips left by [#permalink]

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24 May 2009, 06:01
B it is

seeing credit card logo makes cardholders to tip more .
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Re: Studies in the resturants show that the tips left by [#permalink]

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24 May 2009, 09:09
C.

Patron's who don't have credit cards want to spend more because they see the credit symbol. The patrons who pay their bill in CASH tend to tip more, not ones with CREDIT, when the symbol is on the tray, not the other way around. I think the psychology is that the credit symbol makes cardholders spend more, and makes the cash spenders tip more because they wish they had a card. They want to compensate for the lack of spending power the symbol displays that they possess. I think C is most logical.

B - says that credit card holders would tip less, refuting the claim by the psychologists' hypothesis

E - relates to credit card holders of the same brand, not people who pay their bill in cash
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Re: Studies in the resturants show that the tips left by [#permalink]

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24 May 2009, 14:28
I will go with B
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Re: Studies in the resturants show that the tips left by [#permalink]

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24 May 2009, 20:21
"seeing a credit card logo makes many credit card holders willing to spend more becuase it remides them that their spending power exceeds the cash they have immediately available," is the claim made by the psychologists

"Patrons who are under financial pressure from their credit casd 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," refutes the claim, thereby not supporting it
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Re: Studies in the resturants show that the tips left by [#permalink]

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25 May 2009, 00:41
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Studies in the resturants show that the tips left by cutomers who pay their bill in cash tent 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 becuase it remides 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) Patrons who are under financial pressure from their credit casd 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
Now if i understood ques right, the inference is abt the influence of credit card's logo on the psycology of the customer, and that makes a person to give more tip.
B says that logo does have an influence... and gives us with a logic .

C) In virtually all of the cases in the studies, the patrons who paid bills in cash did not posses s credit card.
If they don't possess credit card where is the talk of influence? an all of the cases funda makes it eligible for elimination

D) In general, resturant patrons who pay their bills in cash leave larger tips than do those who pay by credit card
This also does not fits into my consideration for finding an answer

E) The percentage of resturant 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.
Now, this again fits in a bit and says that cc logo on tray influences spendig by that only cc.
but it hits on the influence of brand to use that brand, not on the psycology of spending more

so i guess B

what is OA
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Re: Studies in the resturants show that the tips left by [#permalink]

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25 May 2009, 11:58
gmatprep09 wrote:
Studies in the 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 notes 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 a credit card.
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.

The original hypothesis is logo ---> increased tip DURING CASH PAYMENT.

B - This weakens; this suggests logo ---> DECREASED tip under some circumstances.
C - Neutral statement, not a strong answer.
D - This is a weaken, this suggests an alternative reason for larger tips.
E - Irrelevant, we're talking about customers who pay WITH CASH.

(A) is the strongest answer. It suggests the results of the study can be repeated and is generalizable to both cardholders and non-cardholders.
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Re: Studies in the resturants show that the tips left by [#permalink]

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25 May 2009, 12:52
Is there an OA available?
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Re: Studies in the resturants show that the tips left by [#permalink]

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25 May 2009, 13:20
vagesh:

B) Patrons who are under financial pressure from their credit casd 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
Now if i understood ques right, the inference is abt the influence of credit card's logo on the psycology of the customer, and that makes a person to give more tip.
B says that logo does have an influence... and gives us with a logic .

The claim supported in B refutes the psychologists interpretation of the studies, that the credit card logo "increased" what credit card holders want to spend.

I guess C is a little neutral, but A is much more neutral. Saying that the study is not limited to patrons who have credit cards simply means that people who do not have credit cards and are not patrons are included in the study. This says absolutely nothing to strengthen or refute the inference made by the psychologists.
In C, it shows that the people (patrons specifically), lack the ability to exceed the amount they have on hand by using a credit card, but the logo has the same effect and makes them want to spend more. It is a stretch interpretation, but the only one that does have the potential to say that a credit card logo does make people want to spend more, which is the psychologists interpretation of the studies, in my opinion.

All answers either refute or make a somewhat neutral claim, I say that C is stronger than A in its implications.

What is OA?
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Re: Studies in the resturants show that the tips left by [#permalink]

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27 May 2009, 17:47
OA is B!
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Re: Studies in the resturants show that the tips left by [#permalink]

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27 May 2009, 20:14
dk94588 wrote:
C.

Patron's who don't have credit cards want to spend more because they see the credit symbol. The patrons who pay their bill in CASH tend to tip more, not ones with CREDIT, when the symbol is on the tray, not the other way around. I think the psychology is that the credit symbol makes cardholders spend more, and makes the cash spenders tip more because they wish they had a card. They want to compensate for the lack of spending power the symbol displays that they possess. I think C is most logical.

B - says that credit card holders would tip less, refuting the claim by the psychologists' hypothesis

E - relates to credit card holders of the same brand, not people who pay their bill in cash

You may confuse btw "tip more" and "spend more". They are really different.
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Re: Studies in the resturants show that the tips left by [#permalink]

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12 Oct 2010, 22:18
Can someone clearly explain the OA here. I came across this question in OG12 today and did not get it at all...
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Re: Studies in the resturants show that the tips left by [#permalink]

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13 Oct 2010, 17:36
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I agree with B.
B) Patrons who are under financial pressure from their credit casd 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.

the POINT is that the logo reminds of customer' spending power.

in the question, it says people are willing to tip more when seeing the logo because it reminds of their spending power.

Same thing for B. People are not likely to tip a lot when they see the logo because it reminds of their spending power too. But the power is weak in this case.

so let turn back to the question

see logo when rich -> tip more
see logo when poor -> tip less

it is the logic that connects those two: see logo reminds of your spending power

Hope you can understand what i am trying to illustrate here!
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Re: Studies in the resturants show that the tips left by [#permalink]

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13 Oct 2010, 18:33
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This is B, and I think I see why people are getting confused.

gmatprep09 wrote:
Studies in the resturants show that the tips left by cutomers who pay their bill in cash tent 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 becuase it remides 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?

Customers who pay with cash see the credit card logo on their bill and leave a bigger tip than those who do not see a credit card logo. The hypothesis is that the customers who see the credit card logo subconsciously think, "Hey, that's right, I own a credit card! I can use my cash more freely because my Visa has my back! I'll leave a bigger tip because the cash doesn't matter as much to me!" So what would help support this hypothesis?

A) The effect notes in the studies is not limited to patrons who have credit cards. This would weaken the argument, because the point is that people are reminded of their credit cards and thus leave bigger tips. If people who don't even own credit cards experience the same phenomenon, then that hypothesis pretty much goes right out the window.
B) Patrons who are under financial pressure from their credit casd 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. So people who are subconsciously reminded of the extra spending power their credit card provides tend to leave a bigger cash tip, because their cash doesn't mean as much to them. B adds to this, telling us that people who have a lot of credit card debt will leave a SMALLER tip in this same situation. This provides evidence because it shows that it is indeed the credit card logo making the customers think of their credit cards, and affecting the size of their tip.
C) In virtually all of the cases in the studies, the patrons who paid bills in cash did not posses s credit card. This would weaken the hypothesis, because the psychologists claim that the patrons paying in cash are reminded of their credit card spending power.
D) In general, resturant patrons who pay their bills in cash leave larger tips than do those who pay by credit card. This would weaken the hypothesis, because it says that cash customers just leave larger tips in general, regardless of the appearance of a credit card logo.
E) The percentage of resturant 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. Irrelevant. We're only discussing customers paying with cash, not with credit cards.
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Re: Studies in the resturants show that the tips left by [#permalink]

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14 Oct 2010, 21:26
E
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Re: Studies in the resturants show that the tips left by [#permalink]

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31 Oct 2013, 20:51
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Re: Studies in the resturants show that the tips left by [#permalink]

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05 Jun 2015, 14:55
Hello from the GMAT Club VerbalBot!

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Re: Studies in the resturants show that the tips left by [#permalink]

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28 Oct 2015, 14:14
Claim:.....because it reminds them that their spending power exceeds the cash they have immediately available.

B refutes the claim. If the conclusion would say credit card logo influences his tendency of tips, then B would be sufficient. Unfortunately it is not, and we cannot ASSUME sth from the conclusion.
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Re: Studies in the resturants show that the tips left by [#permalink]

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13 Dec 2015, 11:27
I picked B.

If patrons spend more on tips when paying with credit card because they know that "it reminds them that their spending power exceeds the cash they have immediately available", then when they have financial problems, they will definitely give fewer bucks as tips.

B perfectly explains this situation.
Re: Studies in the resturants show that the tips left by   [#permalink] 13 Dec 2015, 11:27

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# Studies in the resturants show that the tips left by

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