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A company that designs websites primarily for minority-owned businesse
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tushain
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A company that designs websites primarily for minority-owned businesse [#permalink] New post  Updated on: 18 Dec 2019, 08:16
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Project IR Butler 2019-20 - Get one IR Question Everyday
Question # 72, Date : 11-Dec-2019
This post is a part of Project IR Butler 2019-20. Click here for Details


A company that designs websites primarily for minority-owned businesses conducted a survey of minority-owned businesses in the United States that do not currently have a website. The survey was designed to help determine what respondents see as the potential benefits of adding a website. The results of that survey are shown in the table.

Attachment:
Table.jpg
Table.jpg [ 50.8 KiB | Viewed 6429 times ]


For each of the following conclusions, select Supported if it is supported by the information in the table. Otherwise select Not supported.

SupportedNot supportedValues
A majority of the respondents believe adding a website could benefit their businesses.
Fewer than 25% of the respondents who believe a website could help expand their customer base also believe a website could help them maintain their current market share.
Only a small proportion of the respondents are concerned that they are losing market share.


Show SpoilerOA
SupportedNot supportedValues
TickA majority of the respondents believe adding a website could benefit their businesses.
TickFewer than 25% of the respondents who believe a website could help expand their customer base also believe a website could help them maintain their current market share.
TickOnly a small proportion of the respondents are concerned that they are losing market share.

___________________________________________________

Show SpoilerMy Question
I have some problems with Question 2……

Preserve Market Share(PMS) : 28 Respondents
Expand Customer Base (ECB): 30 Respondents

How can we assume that ‘’fewer than 25% of 459*26%(119)—or say, in ECB, fewer than 30 also ‘’all’’ believe can PMS….??”


Is there anything I miss out?

Here’s my question point
If we try to solve/understand question2 from the opposite side

1.
Less than 25%-if here we assume maybe it’s “20%”
Then 459*26%=119
119*20%=23.8 ,after rounding it's 24
24people are also all included in the set of group which believe can maintain their market share(459*0.06=28), well, this maybe true/established
However, there’s a possibility that all these 24people also belong to a group of people who ‘’all’’ did not believe can maintain their market share-then question2’s assumption will be denied

2.
Besides, if the number just fall on ‘’29’’ people, then obviously these 29 people cannot ‘’all’’ be included in ‘’28’’ people of PMS

3.
As EMPOWERgmatRichC says
Preserve Market Share(PMS) : 28 Respondents
Expand Customer Base (ECB): 30 Respondents

In simple terms, is 28 less than 30? YES - it clearly is. This does not change regardless of the number of people who are in "both" groups because the overall totals (28 and 30) will still be the same. You are given EXACT data/numbers to work with here, and no 'hypothetical' situation changes those numbers.

If you add up all of the percentages in the first column, you end up with a total of 110%. That would not happen if each person chose just one reason. Thus, some of those people chose 2 (or more) reasons.-however, will the overlapping must be occur in ECB&PMS , not in other categories???maybe ECB&PMS do not overlap between each us…this is also a possibility

As Spoiler OA, I saw somebody said that Official answer is ‘supported’, well, like other students, I’m really confused about this Official answer, what’s its logic to support this statement as true ,how can you categorically assume this assumption to be true/supported????

Originally posted by tushain on 27 Sep 2014, 05:52.
Last edited by Sajjad1994 on 18 Dec 2019, 08:16, edited 3 times in total.
Updated - Complete topic (49).
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  31 Dec 2014, 13:29
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Hi JusTLucK04,

The percents in the table are specific enough to help you do a "comparison" instead of a calculation, but if you wanted to see the math, then here it is:

In the first column, we have 459 Latino respondents:

26% think that a website will help to expand the customer base:
26%(459) = about 119

6% think that a website will help maintain/preserve market share:
6%(459) = about 28

The second question in the set asks if the idea that the second number is LESS THAN 25% of the first number.

25%(119) = about 30. Since 28 < 30, this IS a reasonable/supported conclusion.

Now, performing these calculations is NOT really what this question is about (and it's not required either). The "shortcut" is to compare the percentages, since the percentages are both based on the SAME total number of respondents in the survey (and as such, THAT number doesn't really matter to this question).

In the Latino column...is 6% less than 1/4 of 25%.....YES
In the African American column...is 6% less than 1/4 of 29%....YES
In the Asian American column...is 4% less than 1/4 of 25%....YES
In the Native American column...is 6% less than 1/4 of 25%...YES

This is a constant, reasonable conclusion, so the answer to the second question is YES/SUPPORTED.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  30 Sep 2014, 03:02
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I will give it a shot.

Survey asks people about which of the things in the list would be a potential benefit of adding a website.

People can choose one or more options they think will benefit.

Question B:Fewer than 25 % of the respondent who believe a website could help expand their customer base also believe a website could help them maintain their current market share.
I will take one case here:
Latino(459 ppl = X)
Expand customer base 26%
Preserve(Current) Market share 6 %.

People who think expand customer base = 26% of X = 0.26 X
A -> 25 % of the respondent who believe a website could help expand their customer base = 0.25 (0.26 X)= 0.065 X = 6.5 % of X
B -> People of think Preserve Market share = 6 %.

Clearly A is greater than B
You can apply the same to other community and find similar results.

Question C: Only a small proportion of respondents are concerned that they are losing market share.
The potential benefit listed is Preserve market share NOT Losing or Gaining market share.People gave opinion about only preserving market share not gaining or losing it.Information about losing market share is not available.
We only know that 94 % (100 - 6%) people think otherwise that Potential benefit is Gaining, Losing,Cant say etc .But we can find values of individuals.

Hope it helps :)
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  31 Dec 2014, 05:49
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I still dont get how B is supported here..
Experts..@ Bunuel,Karishma..Please guide..

Edit: I will be a bit more specific..How do we know that these are the same ppl who also believed in expanding the share..
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  05 Jan 2015, 18:03
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Hi jitendra31,

If you scroll up and look at the original screen capture, you'll see that the second statement is actually SUPPORTED, so you must have missed something in your approach/calculations. How did you go about approaching this question?

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  06 Jan 2015, 06:02
Dear Rich,

Where in the question it is stated that these 6% are those that also answered 'expand consumer base'. Whereas mathematically your calculations look alright, I was not sure of the logic and hence, the difference.

Hope this explains.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  06 Jan 2015, 09:58
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Hi jitendra31,

The information that we need to answer the second statement is in 2 of the rows:

1) 'Expand Customer Base' is the 1st row

2) 'Maintain their current market share' is actually written as 'Preserve Market Share' and is the 6th row.

Sometimes IR questions won't be strict with vocabulary and will use synonyms (re: 'maintain' and 'preserve' mean the same thing). Even if you did not know that those two words mean the same thing though, the words "market share" only show up in one row - the 6th row - so even if you were a little unsure about what data to use, the ONLY row that makes any sense would be the 6th one. From here, the rest of the work is more about the comparison of the percents and not about doing the actual long-winded calculation.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  08 Jan 2015, 02:13
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Hi Rich,

Read the question b closely. Pay attention to the word "ALSO". Where in the question stem it is mentioned that the two population segments are same. How do you infer that?

I have already stated that your maths is right, but you need to provide us more logic on the complete overlap of two sets. Why the remaining 74% (100%-26%, only for the second column as an example) are not thought of? Why can they not be a part of the 6% population?

Hope this explains.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  08 Jan 2015, 12:00
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Hi jitendra31,

If you add up the percents in each of the columns, you'll see that the total in each is GREATER than 100%, which means that some respondents believe that there are multiple benefits to having a website. Even if you had not noticed that though, the description refers to the survey asking respondents what they see as the potential BENEFITS (meaning possibly plural) of having a website (it does NOT state that each survey respondent selected "just one" of the potential benefits).

Just as in CR questions, the details in IR questions matter a great deal.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  12 Jan 2015, 04:12
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Rich,

I am appalled by your lack of sense of understanding logic. I am not interested in continuing this discussion any further. You won!

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  08 Aug 2015, 02:53
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EMPOWERgmatRichC wrote:
Hi jitendra31,

If you add up the percents in each of the columns, you'll see that the total in each is GREATER than 100%, which means that some respondents believe that there are multiple benefits to having a website. Even if you had not noticed that though, the description refers to the survey asking respondents what they see as the potential BENEFITS (meaning possibly plural) of having a website (it does NOT state that each survey respondent selected "just one" of the potential benefits).

Just as in CR questions, the details in IR questions matter a great deal.

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Thanks Rich for the explanation. I really cannot understand one thing -

Yes, the respondents marked just more than one benefit on the list, but how do we know that the 25%people (X) were the ones who also said market share 6% (Y) as the benefit. It is very probable that there can be some people in this 25% that said 'improve communication' as one of the benefits.

If you can answer
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  08 Aug 2015, 03:00
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Bunuel karishma or Other Experts

Experts,

If you can shed light on C part of the question. How is it not supported ?

The people who say 'Preserve Market Share' probably will be the ones who dread that they will lose market share. So, why can't I infer the same ?

Please if you can take me in the right direction ?
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  08 Aug 2015, 13:28
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Hi anewbeginning,

You bring up a really important point - maybe the people who list 'expand the customer base' are the same people who list 'preserve market share', BUT maybe they're not.

The prompt asks if the conclusion (that LESS than 25% of that first group ALSO is in the second group) is supported. EITHER WAY, it is!

Consider the following data:

26% of 459 Latinos listed "expand their customer base" = 119 people
6% of 459 Latinos listed "preserve market share" = 28 people

IF EVERYONE in the second group was also in the first group, then that would be 28/119 = about 23.5% (and that is the MAXIMUM PERCENT that it could be; if it's a smaller percent, then the conclusion is STILL supported). This relationship exists with EVERY group of people polled; thus, the second point IS SUPPORTED.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  31 Mar 2016, 14:26
Hi EMPOWERgmatRichC,

Could you help to explain the final part of the question, as I have the same question as Steinbeck: The pepple who responded 'Preserve Market Share' probably will be the ones who dread that they will lose market share (while the others who did not dread that should respond in another way, e.g 'Increase/Expand Market Share' or something like that), so why can't we infer the same? Please correct me if my understanding is wrong.

Thank for your response :)
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  01 Apr 2016, 09:15
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Hi thuyduong91vnu,

The 3rd part of the question would probably be missed by a sizable group of Test Takers. To properly deal with that piece of the question, you have to re-read the introduction (above the table) - it describes how survey respondents were commenting on what they see as the POTENTIAL BENEFITS of having a website. This ENTIRE table is based on what respondents see as possible benefits - the benefits have not happened yet and they might not happen even if the respondents did have a website, but it's what they think might be benefits.

The 3rd part asks about the proportion of respondents who are CONCERNED about losing market share. We don't know ANYTHING about "concerns" though - the table and survey were NOT about that. To take it a step further, if you're going to infer that "preserve market share" is the same as "afraid of losing market share", wouldn't you infer the same thing about those who want to expand their customer base(s)? Wouldn't they dread losing market share too? When you combine those too groups, it's not really a "small proportion" of respondents.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  14 Aug 2016, 03:14
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Hi Rich,
Hope you are doing good.
I agree with your reasoning quoted below but I am still not able to solve Q2.

Quote:
If you add up the percents in each of the columns, you'll see that the total in each is GREATER than 100%, which means that some respondents believe that there are multiple benefits to having a website. Even if you had not noticed that though, the description refers to the survey asking respondents what they see as the potential BENEFITS (meaning possibly plural) of having a website (it does NOT state that each survey respondent selected "just one" of the potential benefits).


What I don't understand is how can we be sure that the two mentioned sets overlap. It is possible that the "GREATER" part is adjusted with the overlapping of other sets /captured benefits.
I am sure that I am missing some key points here and will appreciate if you can help me to identify it.
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  14 Aug 2016, 11:06
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Hi JarvisR,

I think it would be easiest if you show me the work that you did when dealing with Question #2. Based on your interpretation of what was asked, what data did you pull from the table? What calculation(s) did you perform?

On any given GMAT question (whether it's IR or some other type), it's okay if you're unsure of how to interpret what is asked. However, you're not allowed to do 'nothing' - you should try working through the prompt with your initial interpretation, then work through it (if needed) with any other interpretation that you might have. Sometimes, the process of going through the work provides you with the exact insight that you need to adjust your thinking and correctly answer the question.

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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  07 Sep 2016, 03:15
Hi EMPOWERgmatRichC

I have the same question as JarvisR.

Preserve Market Share(PMS) : 28 Respondents
Expand Customer Base (ECB): 30 Respondents

How can we assume 28 Respondents of PMS are in those 30 Respondents of ECB ?
Is there anything i am missing ?
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  23 Sep 2016, 09:38
The question Shrivathsan have is apparently what most of the people here have problem with. In fact everyone is trying to prove why (2) is supported just because the official answer says that (2) is supported.
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Re: A company that designs websites primarily for minority-owned businesse [#permalink] New post  19 May 2017, 11:21
tushain wrote:
Please explain question 2 and 3
Source : GMAT Prep


Hi EMPOWERgmatRichC,

It seems that most people do not have any problems with question 1. But I want to make sure my logic is correct on question 1.

In the first column, all the potential benefits that people believe are listed, as well as "other', "no benefit" and "uncertain".

Statement 1: A majority of the respondents believe adding a website could benefit their businesses.

To determine whether the percentage of respondents believe adding a website could benefit their businesses is more than 50%, I need to calculate the percentage of "No benefit" and "Uncertain". For example, 27% and 10% of Latino believe that there no benefit or they are uncertain. Therefore, 63% (more than 50%) believe there are benefits.

Is it correct?

Thx,
Victoria
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