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# Community activist: If Morganville wants to keep its central

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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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16 Dec 2011, 00:19
Agree with the justification for C but still B perplexes me.

Applying variance test for B

Ans 1: Yes (say 90%) - In this case opening of SaveAll may attract the customers from stores in Morganville(90%) and hence would lead to their bankruptcies.

Ans 2: No( say 10%) - Stores are already surviving with only 10% of customers. In this case opening of SaveAll would not affect much. I guess this is the point which most of us have considered while opting for B.

Now, when I pen down, I wonder what if SaveAll would attract those 10% customers and that itself is sufficient enough for stores to go bankrupt.

crick20002002 wrote:
C it is.

Apply variance test

To apply the variance test , you should choose polar opposite answers:

In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

Ans 1 : More than a quarter (25%) : Well that means SaveAll does not cause bankruptcies. Since it is happening in towns with Healthy shopping districts, it must be normal for a quarter to go bankrupt in 5 year period.

Ans 2 : Less than a quarter(25 %) : That means SaveAll does cause some stores to go bankrupt.

Crick

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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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16 Dec 2011, 01:03
well the the question here is does SaveAll causes other store to close or not...... in the first 5 year.

then probably the first thing to analyze is in normal conditions how many stores close with out the SaveAll intervention.

+ 1 For C.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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17 Feb 2012, 12:15
Can someone please explain how to get rid of (b)? I understand the logic for (c) but (b) also makes sense to me.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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Updated on: 14 Sep 2013, 22:39
2
1
Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist’s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

why is the answer C here .. why is B not applicable ...

how is proportion important here to the impact

Originally posted by venmic on 22 Jul 2012, 08:48.
Last edited by Narenn on 14 Sep 2013, 22:39, edited 1 time in total.
Always put OA in the spoiler.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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22 Jul 2012, 10:36
2
if during a typical five year period, if quarter of the shops are filing for bankruptcy, then the proportion cannot be attributed to the SaveAll store. Hence, it is C instead of B,
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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22 Jul 2012, 10:46
abhitheCEO wrote:
if during a typical five year period, if quarter of the shops are filing for bankruptcy, then the proportion cannot be attributed to the SaveAll store. Hence, it is C instead of B,

Thankyou
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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18 Dec 2012, 20:01
1
teal wrote:
Can someone please explain how to get rid of (b)? I understand the logic for (c) but (b) also makes sense to me.

I think this is one of those "hairy" CR questions that boils down to 50/50 on the GMAT. I answered this incorrectly BTW.

What I took away from this question is that C is the better choice, because it will either negate the importance of SaveAll entering the market or not.

Take a look at C again:

Let's suppose that after reviewing the proportion of stores that go out of business in other cities, the aggregate data indicates that the 25% bankruptcy rate is very common. Perhaps then, SaveAll's entry in the market is a non issue. But if the 25% figure is not consistent among the cities studied, then maybe SaveAll does have an impact when it enters the market.

That is my reasoning, can anyone see where I could have made a mistake?
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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14 Sep 2013, 21:28
1
If the bankrupsy is happening in other towns which are not opening new stores than the reasoning of communist activist is false.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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15 Sep 2013, 10:52
I didnt get it.If quarter of the shops are going bankrupt....then why the opening of the new shop is not responsible.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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15 Sep 2013, 19:21
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Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

the community activist’s reasoning is about the relationship between the opening saveall in the outskirts and the bankruptcies of stores in shopping district

The answer to which of the following would be most useful for evaluating the community activist’s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
if this is true, it not necessary that the activist's reasoning is not true

B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
it does not affect the activist's reasoning about the records in other small towns

C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
Correct, its useful to compare the records in the reasoning with the records of those towns in typical period to see if the relationship between the opening saveall in the outskirts and the bankruptcies of stores in shopping district is significant

D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?
It s not relevant

E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
the answer to this question is not useful to evaluate the relationship between the opening saveall in the outskirts and the bankruptcies of stores in shopping district

why is the answer C here .. why is B not applicable ...

how is proportion important here to the impact

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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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29 Jul 2014, 08:34
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This is my new project: Renew Old Thread => Back to basic => Just try It and give your reasoning
The topic will be sticky for 2 days from starting

Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist’s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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29 Jul 2014, 10:22
The answer must be C...though i got it wrong(gone with the B in the instant)...actually the question is to find the reason behind the bankruptcies of central shops....whether it is the Save All store or any other reason that might have caused the increase (if any) of the bankruptcies in the healthy districts during the five year period.

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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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29 Jul 2014, 15:41
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tuanquang269 wrote:
This is my new project: Renew Old Thread => Back to basic => Just try It and give your reasoning
The topic will be sticky for 2 days from starting

Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activist’s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

Premise :
Other towns : SaveAll opened ---> Quarter of Central shopping district shops go bankrupt

Conclusion :
Morganville : SaveAll opening --> Central shopping district shops will go bankrupt

The answer to the following question would be most useful for evaluating the reasoning :
Are there any other factors, besides the opening of SaveAll stores, resulting in the Central district shops going bankrupt.

The option most alike the question above is Option C.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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30 Jul 2014, 00:27
Excerpt uses 'other towns' as an example supporting 'SaveAll = other stores bankrupt' in Morganville
to explain this argument, which is completely reliant on using 'other towns' as support, the answer choice must relate to the credibility of these 'other towns'; such as whether SaveAll is the only cause of their bankruptcy, or whether other town is similar to Morganville.

tuanquang269 wrote:
A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
Excerpt uses opened SaveAll as an example, so unopened SaveAll seems out of scope

B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
Since reason of bankrupcy was never discussed, it is unknown whether shopping is a major factor related to bankrupcy. Finding this does very little to support/weaken the fact that SaveAll = bankruptcy.

C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
This sheds light on the situation between 'other towns' and Morganville, it also helps explore whether other factors also play a role in bankruptcy so that SaveAll may not be the only cause.

D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?
Employee enrollment is not the entirety of costs, which isn't entirely the cause of bankruptcy.

E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
Author did not establish any connection between SaveAll's earnings and other stores going bankrupt. SaveAll could've be pulling a destructive price war, for instance.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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31 Jul 2014, 01:05
This topic have been merged with: http://gmatclub.com/forum/topic-81304.html
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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31 Jul 2014, 01:05
Must be C. If more than a quarter of the stores usually suffer bankruptcy in towns with health central shopping districts in typical five year period (common pattern), then SaveAll is unlikely the reason.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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16 Oct 2014, 15:19
Hi @e-gmat,
I wanted to ask one thing - here I am stuck why option B is incorrect and C correct. According to B, Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville? So if currently people are doing online shopping, then opening of SaveAll would not affect, else it would affect. Here, variance test is applied and successful. Also please tell me how is option C is correct?
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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19 Oct 2014, 07:29
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HI

IMO If we apply variance test on Option B

Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville ?

YES : Say 70% of the residents do there shopping at stores in M. So after opening of the SaveAll stores can there be a impact ? Yes there can be a impact on stores of M
NO : Say 30% of the residents do there shopping at stores in M. So after opening of the SaveAll stores can there be a impact ? Yes there can be a impact on stores of M as these 30% can start buying from SaveAll stores.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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14 Jul 2015, 14:04
I chose C because I felt it would evaluate the scenario more closely and it is the right answer.
But I'm bit confused why B is wrong. It is possible that If poeple used to go for shopping at city stores then they may shift to new one. or It is also possible that if city stores are of textiles and mall is of electric appliances(I mean both are different) then it's presence does not affect anymore.
Is my thought process in correct direction.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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16 Oct 2015, 03:37
In this qsn,the key underlying assumptions lead us to the correct answer choice which is C.
The assumptions which underline the activist's reasoning are:
a) what happened with other small towns will be replicated in Morganville with opening of Save All
b) Like Morganville , other towns that have been compared also had a healthy shopping district when Save All opened
Re: Community activist: If Morganville wants to keep its central &nbs [#permalink] 16 Oct 2015, 03:37

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