The expenses related to sponsoring a conference can be : Integrated Reasoning (IR)
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# The expenses related to sponsoring a conference can be

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The expenses related to sponsoring a conference can be [#permalink]

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06 Jul 2012, 11:16
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The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.

While most conference attendees prefer to stay in the host hotel, they often follow an alternate strategy to avoid the extra cost of reserving a room within the block at the host hotel. Some attendees reserve rooms outside the host hotel -- the ROHH strategy. Others reserve rooms outside the block -- the ROB strategy.

Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who book rooms in the block. A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.

http://www.gmatpill.com/gmat-practice-test/gmat-integrated-reasoning/multi-source-reasoning-questions/gmat-prep/Favor%20a%20Strategy/question/1881

Can anyone tell me what is the correct answer for this ?
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07 Jul 2012, 18:05
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A person is most likely going to prefer the ROB strategy if his or her out-of-block hotel rate is the cheapest. In that case, reserving outside the hotel for that person would not make sense. AMG conference attendees can stay at the affiliated Garden Inn which has the cheapest out of block room rate in the table. Hence attendees in this hotel will most likely implement a ROB strategy over ROHH.
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14 Aug 2012, 19:15
I have a question about the room rates - room rates are per guest, per night so, assuming two guests per room.

When they say assuming two guests per room, what does that mean- does that mean that maximum number of occupants per room will be two? In all the calculations that we did, we did multiply by 2 to calculate the cost of accommodation for two nights since the given table listed the cost on a per night basis. Also, if we were (which the current question asks only for one attendee) to calculate the accommodation for two attendees instead of one would we need to multiply the cost by 4 ( 2 for two nights and another 2 for number of guests since the cost as listed is per night, per guest basis)?? Please clarify.
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17 Aug 2012, 19:57
I have a question about the room rates - room rates are per guest, per night so, assuming two guests per room.

When they say assuming two guests per room, what does that mean- does that mean that maximum number of occupants per room will be two?
I understood it as having two guests per room; no maximum or minimum number of guests.

In all the calculations that we did, we did multiply by 2 to calculate the cost of accommodation for two nights since the given table listed the cost on a per night basis. Also, if we were (which the current question asks only for one attendee) to calculate the accommodation for two attendees instead of one would we need to multiply the cost by 4 ( 2 for two nights and another 2 for number of guests since the cost as listed is per night, per guest basis)?? Please clarify.

We would multiply by two to find the costs of two days. We don't need to again multiply by two to calculate the cost for two guests because the costs listed in the table will be shared by the two guests. For example if the question stated that the table lists the costs of a room that each person would have to pay then we would need to multiply by two. This is how I understand this question.
Re: The expenses related to sponsoring a conference can be   [#permalink] 17 Aug 2012, 19:57
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# The expenses related to sponsoring a conference can be

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