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

It is currently 21 May 2013, 11:47
Customize  |  Hide

The Plexis Corporation, a leading computer chip

  Question banks Downloads My Bookmarks Reviews  
Author Message
TAGS:
Director
Director
Joined: 23 Apr 2010
Posts: 595
Followers: 2

Kudos [?]: 14 [0], given: 7

The Plexis Corporation, a leading computer chip [#permalink] New post 30 Sep 2011, 06:37
00:00

Question Stats:

91% (01:44) correct 8% (00:58) wrong based on 1 sessions
The Plexis Corporation, a leading computer chip
manufacturer, is currently developing a new chip,
which is faster and more efficient than any computer
chip currently in use. The new chip will be released for
sale in twelve months. Plexis’ market research has
shown that initial sales of the new chip would be
maximized by starting to advertise it now, but the
company has decided to wait another six months
before doing so.
Which of the following, if true, provides the Plexis
Corporation with the best reason for postponing
advertising its new chip?

(A) Some computer users are reluctant to purchase
new computer products when they are fi rst
released.
(B) The cost of an advertising campaign capable of
maximizing initial sales of the new chip would be
no greater than campaigns previously
undertaken by Plexis.
(C) Advertising the new chip now will signifi cantly
decrease sales of Plexis’ current line of
computer chips.
(D) Plexis’ major rivals in the computer chip
manufacturing business are developing a chip
with capabilities that are comparable to those of
Plexis’ new chip.
(E) Taking full advantage of the capacities of the
new chip will require substantial adjustments in
other segments of the computer industry


I got the question right. However, I would like to hear your thoughts on why (E) is wrong. My reasoning with (E) goes like this:

The Plexis corp. is waiting for major changes in other segments of the computer industry that are expected in 6 months. For example, the new chip might have a feature that is not supported by current motherboards. But new motherboards will be announced in 6 months. So the Plexis Corp. decided to wait for that announcement. Had they decided not to wait, it would be useless to market the chip (because, as I have said, the new feature is yet to be supported by motherboards), and the advertisement campaign would result in wasted money.

Any thoughts?


The OA is a slightly better choice.
[Reveal] Spoiler: OA
Intern
Intern
Status: Target 660 -> 720(Q49,V41) retaking in Feb 2012
Joined: 22 Aug 2011
Posts: 6
Location: United States
GMAT 1: 660 Q47 V34
GMAT 2: Q V
WE: Information Technology (Computer Software)
Followers: 0

Kudos [?]: 5 [0], given: 6

GMAT Tests User
Re: The Plexis Corporation [#permalink] New post 30 Sep 2011, 06:50
Here is my opinion -
E does not say when the substantial changes are going to take place. For all we know it might take 2 years.
Intern
Intern
Joined: 13 Jul 2011
Posts: 47
Followers: 0

Kudos [?]: 0 [0], given: 8

Re: The Plexis Corporation [#permalink] New post 30 Sep 2011, 18:56
Answer C
1 KUDOS received
Manager
Manager
Joined: 03 Mar 2011
Posts: 96
Location: United States
Schools: Erasmus (S)
GMAT 1: 730 Q51 V37
GPA: 3.9
Followers: 1

Kudos [?]: 67 [1] , given: 12

GMAT Tests User
Re: The Plexis Corporation [#permalink] New post 01 Oct 2011, 08:17
1
This post received
KUDOS
We are said in the premises that sales of the new chip will be maximized by early advertisement. Even if (E) tells us that it will take time for the computer industry to accomodate, this still will not influence our sales since the initial premises is a FACT. So, no matter what there will be in the industry, if (E) is true, then it is still more profitable to begin advertisment right now, hence (E) is not the right answer.
_________________

If my post is useful for you not be ashamed to KUDO me!
Let kudo each other!

Director
Director
Joined: 23 Apr 2010
Posts: 595
Followers: 2

Kudos [?]: 14 [0], given: 7

Re: The Plexis Corporation [#permalink] New post 02 Oct 2011, 09:33
bagrettin, you are right. That's exactly the reason why E is incorrect. Thanks.
Intern
Intern
Joined: 05 Sep 2011
Posts: 44
Followers: 1

Kudos [?]: 4 [0], given: 11

Reviews Badge
Re: The Plexis Corporation [#permalink] New post 02 Oct 2011, 10:09
E seems redundant here. So i have chosen C
Intern
Intern
Joined: 18 Apr 2011
Posts: 27
Followers: 0

Kudos [?]: 0 [0], given: 20

Re: The Plexis Corporation, a leading computer chip [#permalink] New post 03 Sep 2012, 23:23
E strengthens the premise, not a weakener, because if it does start to advertise now, then the chip peripherals would have better opportunity to make the adjustments, which in turn will help the chip sell more, so IMO C is the correct choice and not E
Manager
Manager
Joined: 16 Feb 2012
Posts: 213
Concentration: Finance, Economics
Followers: 4

Kudos [?]: 17 [0], given: 93

Re: The Plexis Corporation, a leading computer chip [#permalink] New post 04 Sep 2012, 09:43
The correct answer is C.
This is the most convincing reason for the company to wait another six months.
_________________

Kudos if you like the post!

Failing to plan is planning to fail.

Re: The Plexis Corporation, a leading computer chip   [#permalink] 04 Sep 2012, 09:43
    Similar topics Author Replies Last post
Similar
Topics:
New posts . As the etched lines on computer memory chips have Curly05 7 22 Jul 2003, 18:20
New posts CR: computer chips imaru 6 06 Aug 2006, 09:33
New posts Gmatprep - computer chips joyce 2 04 Feb 2007, 11:40
New posts SC: computer chips bigtreezl 1 15 Oct 2008, 13:50
New posts 1 Watching the TV or working on the computer leads to getgyan 1 03 Oct 2012, 21:05
Display posts from previous: Sort by

The Plexis Corporation, a leading computer chip

  Question banks Downloads My Bookmarks Reviews  


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®.