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Updated on: 24 Jun 2012, 10:01
Originally posted by prakash111687 on 18 Jun 2012, 06:33.
Last edited by prakash111687 on 24 Jun 2012, 10:01, edited 1 time in total.
Last edited by prakash111687 on 24 Jun 2012, 10:01, edited 1 time in total.
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
85% (01:53) correct
15%
(02:23)
wrong
based on 316
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Antipodes incorporated, a package tour company that caters tourists travelling to Australia, reported a large profit in 1985,a year in which the package tour industry as a whole registered a six percentage decrease in tourist volume. The same company reported a loss in 1986, a year in which the industry registered a twenty percent increase in tourist volume.
Which of the following statement, if true, would most contribute to an explanation of the situation described above?
A) Antipodes Incorporated, after experiencing an increase in costs in 1985 due to an increase in the cost of intercontinental air fair, began offering package tours to destination other than Australia in 1988.
B) Antipodes Incorporated investment in an expensive computerized reservation system in 1985 prompted its competitors to invest in similar system in 1987.
C) Other package tour companies after experiencing a loss of business in there traditional markets in 1985, began offering package tours to Australia at discounted prices in 1986.
D) The package tour industry, as a whole, sold more tours to Australia than o any other single destination both in 1985 and in 1986.
E) During 1985 and 1986, more package tour companies went out of business than in the previous five years combined.
Which of the following statement, if true, would most contribute to an explanation of the situation described above?
A) Antipodes Incorporated, after experiencing an increase in costs in 1985 due to an increase in the cost of intercontinental air fair, began offering package tours to destination other than Australia in 1988.
B) Antipodes Incorporated investment in an expensive computerized reservation system in 1985 prompted its competitors to invest in similar system in 1987.
C) Other package tour companies after experiencing a loss of business in there traditional markets in 1985, began offering package tours to Australia at discounted prices in 1986.
D) The package tour industry, as a whole, sold more tours to Australia than o any other single destination both in 1985 and in 1986.
E) During 1985 and 1986, more package tour companies went out of business than in the previous five years combined.
18 Jun 2012, 20:00
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The Antipodes reported a profit in 1985 and a loss in 1986, we must look for something that changes in, or between, these years
A) Incorrect. What happened in 1988 is irrelevant to us.
B) Incorrect. If the competitors made the investment in 1987, it could have had no effect on 1986.
C) CORRECT. This explains what happened. In 1985, Antipodes was offering Australia tours when nobody else was. As there was great demand for Australia tours, in 1985, Antipodes made a profit, while the industry, which was focusing on other destinations, reported a fall in tourist volume. In 1986, other competitors seized the Australia opportunity too, which meant rising volumes for them and decreasing tourist volumes (on account of more competition) for Antipodes.
D) Incorrect. We don't know if Australia tours were sold more than other tours.
E) Irrelevant. We are trying to explain what happened to Antipodes and the industry in 1985 and 1986, and this information is not relevant.
Choice C
A) Incorrect. What happened in 1988 is irrelevant to us.
B) Incorrect. If the competitors made the investment in 1987, it could have had no effect on 1986.
C) CORRECT. This explains what happened. In 1985, Antipodes was offering Australia tours when nobody else was. As there was great demand for Australia tours, in 1985, Antipodes made a profit, while the industry, which was focusing on other destinations, reported a fall in tourist volume. In 1986, other competitors seized the Australia opportunity too, which meant rising volumes for them and decreasing tourist volumes (on account of more competition) for Antipodes.
D) Incorrect. We don't know if Australia tours were sold more than other tours.
E) Irrelevant. We are trying to explain what happened to Antipodes and the industry in 1985 and 1986, and this information is not relevant.
Choice C
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24 Jun 2012, 07:34
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Antipodes incorporated, a package tour company that caters tourists travelling to Australia, reported a large profit in 1985,a year in which the package tour industry as a whole registered a six percentage decrease in tourist volume. The same company reported a loss in 1986, a year in which the industry registered a twenty percent increase in tourist volume.
Which of the following statement, if true, would most contribute to an explanation of the situation described above?
This is a resolve paradox question. Generally, we can pre- phrase the answers of such questions before looking at the answer choice. This helps a lot.
Here , By looking at the question, I could pre- phrase some choices myself for the discrepancy :
1) In 1986, Antipodes incorporated might have reduced their package cost too much that they were ij loss
2) Some other package tour company might have started the business in Australia in 1986 and took away the market share from Antipodes incorporated
3) Other package companies in Australia might have started giving discounted prices, by which the traveler got attracted
4) Antipodes incorporated might have increased the package prices so much that the tourists started choosing other companies for the packages
Now lets see the answer choices :
A) Antipodes Incorporated, after experiencing an increase in costs in 1985 due to an increase in the cost of intercontinental air fair, began offering package tours to destination other than Australia in 1988.
We are not interested to know what happened in 1988. We are interested to know more about the reason for the difference in data in 1985 and 1986
B) Antipodes Incorporated investment in an expensive computerized reservation system in 1985 prompted its competitors to invest in similar system in 1987.
We are not interested to know what happened in 1987. We are interested to know more about the reason for the difference in data in 1985 and 1986
C) Other package tour companies after experiencing a loss of business in there traditional markets in 1985, began offering package tours to Australia at discounted prices in 1986.
This choice is as per my pre- phrased answers (2) and (3) combined.
If some other company starts the business at discounted price in 1986, there would be every possibility that the tourists gets attracted to this company.
Then , in 1986, even if the industry registered a twenty percent increase in tourist volume , many tourists might have chosen theother package tour companies giving discounted prices for their tour, rather than choosing Antipodes incorporated. Hence Antipodes incorporated might have incurred loss
This is the correct answer.
D) The package tour industry, as a whole, sold more tours to Australia than any other single destination both in 1985 and in 1986.
We are interested to know more about the reason for the difference in data between 1985 and 1986 for Antipodes incorporated. This option talks about the similarity in the conditions in 1985 and 1986. Hence , we would not be able to find out from this option, why the data was different for the 2 years.
In General , for resolve paradox questions like this one, if the stimulus contains a paradox where two items are different as in this question, then answer choice that explains why the two items are similar cannot be correct.
E) During 1985 and 1986, more package tour companies went out of business than in the previous five years combined.
Again, this option talks about the similarity in the conditions in 1985 and 1986. Hence , we would not be able to find out from this option, why the data was different for the 2 years.
In General , for resolve paradox questions like this one, if the stimulus contains a paradox where two items are different as in this question, then answer choice that explains why the two items are similar cannot be correct.
Which of the following statement, if true, would most contribute to an explanation of the situation described above?
This is a resolve paradox question. Generally, we can pre- phrase the answers of such questions before looking at the answer choice. This helps a lot.
Here , By looking at the question, I could pre- phrase some choices myself for the discrepancy :
1) In 1986, Antipodes incorporated might have reduced their package cost too much that they were ij loss
2) Some other package tour company might have started the business in Australia in 1986 and took away the market share from Antipodes incorporated
3) Other package companies in Australia might have started giving discounted prices, by which the traveler got attracted
4) Antipodes incorporated might have increased the package prices so much that the tourists started choosing other companies for the packages
Now lets see the answer choices :
A) Antipodes Incorporated, after experiencing an increase in costs in 1985 due to an increase in the cost of intercontinental air fair, began offering package tours to destination other than Australia in 1988.
We are not interested to know what happened in 1988. We are interested to know more about the reason for the difference in data in 1985 and 1986
B) Antipodes Incorporated investment in an expensive computerized reservation system in 1985 prompted its competitors to invest in similar system in 1987.
We are not interested to know what happened in 1987. We are interested to know more about the reason for the difference in data in 1985 and 1986
C) Other package tour companies after experiencing a loss of business in there traditional markets in 1985, began offering package tours to Australia at discounted prices in 1986.
This choice is as per my pre- phrased answers (2) and (3) combined.
If some other company starts the business at discounted price in 1986, there would be every possibility that the tourists gets attracted to this company.
Then , in 1986, even if the industry registered a twenty percent increase in tourist volume , many tourists might have chosen theother package tour companies giving discounted prices for their tour, rather than choosing Antipodes incorporated. Hence Antipodes incorporated might have incurred loss
This is the correct answer.
D) The package tour industry, as a whole, sold more tours to Australia than any other single destination both in 1985 and in 1986.
We are interested to know more about the reason for the difference in data between 1985 and 1986 for Antipodes incorporated. This option talks about the similarity in the conditions in 1985 and 1986. Hence , we would not be able to find out from this option, why the data was different for the 2 years.
In General , for resolve paradox questions like this one, if the stimulus contains a paradox where two items are different as in this question, then answer choice that explains why the two items are similar cannot be correct.
E) During 1985 and 1986, more package tour companies went out of business than in the previous five years combined.
Again, this option talks about the similarity in the conditions in 1985 and 1986. Hence , we would not be able to find out from this option, why the data was different for the 2 years.
In General , for resolve paradox questions like this one, if the stimulus contains a paradox where two items are different as in this question, then answer choice that explains why the two items are similar cannot be correct.
