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# Community activist: If Morganville wants to keep its central

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Manager
Joined: 17 Aug 2012
Posts: 174

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Location: India
Concentration: General Management, Strategy
Schools: Copenhagen, ESMT"19
GPA: 3.75
WE: Consulting (Energy and Utilities)
Re: Community activist: If Morganville wants to keep its central [#permalink]

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28 Apr 2017, 01:16
I missed reading "typcial" in option C and selected B . In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

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

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25 Jun 2017, 01:17
Merged topics. Please, search before posting questions!
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Community activist: If Morganville wants to keep its central [#permalink]

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16 Sep 2017, 14:56
bipolarbear wrote:
Jivana wrote:
B: for me.

C has a very strong case, but I think B calls out a more fundamental issue than C does.

B:
Currently, do people shop in the central shopping district? If yes, then yeah saveall will cause a major problem. But if people do not, then saveall's effects on past bankruptcies as a reason to not allow them to open shop does not hold much water.

And if people, do shop in the central shopping district then allowing saveall to open shop can definitely play a big part in future bankruptcies.

C: The key piece of info missing here is SaveAll's effect on these bankruptcies. Even if we were to know how many shops go bankrupt during a five-year period, it has no correlation to SaveAll's effects.

Between, B & C --> B sounds more reasonable to me.

The problem with B is that even if you know whether most people in Morganville shop in the central district, Saveall might still cause bankruptcies because everyone will move to Saveall. If you knew whether most people in OTHER districts used to shop in the central district, before Saveall was opened, that may help.

I think you're missing what C states.
25% of shops go bankrupt after Saveall opens. If 5% go bankrupt during a five-year period, Saveall is "correlated" with a 20% increase in bankruptcies. If 25% of shops go bankrupt, then there's no real correlation between Saveall and an increase in bankruptcies. Thus knowing the "a priori" percentage of bankruptcies would help in evaluating whether or not Saveall contributes to such an effect.

but for option B, if you know that almost no one shops at Central D, then opening of saveall will have no effect on Central D's stores as no one shops there anyway!

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

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30 Oct 2017, 07:48
I think I got a pretty good hold as to why B is wrong Option Choice.

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

Now this option Choice speaks about the residents of Morganville. This Option choice makes an inherent assumption that ONLY the residents of Morganvile shop at stores in Morganville. What if people from nearby districts/states also come to shop at Morganville. What if the residents of Morganville are only a minority shoppers of the Store ? In these cases, it is clear that finding out the percentage of residents would not make a difference.

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Re: Community activist: If Morganville wants to keep its central   [#permalink] 30 Oct 2017, 07:48

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