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# Community activist: If Morganville wants to keep its central

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

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23 Jul 2009, 21:44
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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 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 form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

OG2017 CR632 P535

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

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27 Jul 2009, 13:20
9
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.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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23 Jul 2009, 21:57
2
A,D and E>> are irrelevant...

b/w B and C

will go with option C, since it looks at another unexplored area of the stats given by the activist, so the answer to this question will help evaluate the activist's reasoning.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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26 Jul 2009, 20:00
5
3
I pick C. The author suggests that the opening of the saveall store causes bankruptcies to occur in 25% of the stores in the shopping district. if we were to know what the percentage of stores went bankrupt, independent of the effects of saveall, it would shed insight on whether or not saveall contributes to the effect, and thus help us evaluate the author's reasoning.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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26 Jul 2009, 20:32
1
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.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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Updated on: 25 Oct 2016, 06:06
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 fi ve 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 fi ve-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 fi rst fi ve years of operation?

Please explain? I choose an another answer

Originally posted by tkarthi4u on 05 Sep 2009, 09:33.
Last edited by abhimahna on 25 Oct 2016, 06:06, edited 1 time in total.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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05 Sep 2009, 10:58
its OG 12#72(Tag added)

what was yr choice?

cant be as OE says...Whether SaveAlls tend to make or lose money in their first five years has no obvious bearing on whether they are apt to undermine the health of the town’s shopping districts.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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05 Sep 2009, 19:05
I took B as my answer choice. Will like some one to explain C and point Why B is wrong.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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05 Sep 2009, 20:20
1
1
As per OG 12
Situation: Morganville should stop SaveAll from opening a store on its outskirts if it wants to keep
its shopping district healthy. Other small towns have experienced bankruptcies in
25 percent of the stores in their central shopping district within five years after such
openings.

REASONING:Which option provides the information that it would be most useful to know in evaluating the argument? Th e argument contends that if SaveAll opens a store in Morganville, then that
will somehow undermine the health of the shopping district. Two basic questions arise
when evaluating the bankruptcy data from other small towns: (1) Did the opening of
SaveAlls cause any of these bankruptcies? No information is given about bankruptcy
rates in small towns without SaveAlls. (2) Is a 25 percent bankruptcy rate over five years
unhealthy?

OE for B&C

B The conclusion would be supported just as well—or as poorly—if this question were answered with a yes as with a no.
C Correct. This option provides the information that it would be most useful to know in evaluating
the argument.

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

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06 Sep 2009, 22:54
V good question
B and C are top contenders...however C wins at the end because B asks a roundabout question and C directly attacks the conclusion..
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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18 Apr 2011, 18:36
1
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.

B is correct. What if people currently don't buy departmental items from Morganville (shopping might be currently healthy due to jewellery, electronics etc. we don't know about it). But, it will atleast address the basic check point.
C is so generic. It doesn't confine the search to towns that are affected by SaveAll alone. Bankruptcy could be due to several reason.
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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19 Apr 2011, 06:39
I selected B, but also agree to the explanation provided for C. As of now confused..
What is OA??
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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27 Apr 2011, 11:40
again C is clear, i dont understand at all how B comes into the picture ?
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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27 Apr 2011, 21:14
1
Conclusion: 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.

Apply the Variance Test for B:
Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in
Morganville?
- The response is Yes: A large percentage of the residents of Morganville currently DO almost all of their shopping at stores in Morganville. Does this statement strengthen or weaken the conclusion?
- The response is NO: A large percentage of the residents of Morganville currently DO NOT do almost all of their shopping at stores in Morganville. Again, does this statement have any effect on the conclusion?
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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17 Jun 2011, 13:30
perfectstranger wrote:
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 form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

OA after some explanations...[code][/code]

This question was really a 750 level Question
because it looks so simple to answer B (as most of us . at least 50% has given in their answers)
but when we dig deeper it comes out to be C........
i also fell in the trap....
dont know what would be my reply if this kind of question appears in my real GMAT
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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17 Jun 2011, 13:52
perfectstranger wrote:
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 form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

OA after some explanations...[code][/code]

I think there are few assumptions in this passage; Considering those assumptions.

B makes more sense:

Hypothetical but a possible case:
If 100 people are in the town and they are all shopping outside the town already, then how is opening of SaveAll affect central shopping district, which is in the town?
If 90 people shop in town, then there is a possibility that Saveall causes the trouble.
Thus, two different answers to this question is helping us gauge the argument.

C: Suppose C evaluation says 100% suffered bankruptcy. How does it affect Morganville? The evaluation will be as good as the premise.
Maybe all the other towns had dilapidated stores and in their town OR the stores sold rotten goods. Thus, it was not the discount that attracted the consumers, but its quality and aesthetic.
And Morganvilles' stores can be very different from the other towns stores.

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

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17 Jun 2011, 14:10
1
fluke wrote:
perfectstranger wrote:
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 form Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?

OA after some explanations...[code][/code]

I think there are few assumptions in this passage; Considering those assumptions.

B makes more sense:

Hypothetical but a possible case:
If 100 people are in the town and they are all shopping outside the town already, then how is opening of SaveAll affect central shopping district, which is in the town?
If 90 people shop in town, then there is a possibility that Saveall causes the trouble.
Thus, two different answers to this question is helping us gauge the argument.

C: Suppose C evaluation says 100% suffered bankruptcy. How does it affect Morganville? The evaluation will be as good as the premise.
Maybe all the other towns had dilapidated stores and in their town OR the stores sold rotten goods. Thus, it was not the discount that attracted the consumers, but its quality and aesthetic.
And Morganvilles' stores can be very different from the other towns stores.

Ans: "B"

dear fluke
its an og question
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Re: Community activist: If Morganville wants to keep its central  [#permalink]

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17 Jun 2011, 16:32
1
1
Warlock007 wrote:
dear fluke
its an og question

Thanks Warlock007:

I ignored the usage of article "a" and the usage of simple present tense(which conveys facts). "C" does make sense.

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

I considered it "the" -- the 5 year period in which SaveAll was at their backyard.
C actually says: in any given 5 year period without SaveAll at the backyard, how many of them go bankrupt.

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

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17 Jun 2011, 17:49
3
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.

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

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18 Jun 2011, 03:28
fluke wrote:
Warlock007 wrote:
dear fluke
its an og question

Thanks Warlock007:

I ignored the usage of article "a" and the usage of simple present tense(which conveys facts). "C" does make sense.

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

I considered it "the" -- the 5 year period in which SaveAll was at their backyard.
C actually says: in any given 5 year period without SaveAll at the backyard, how many of them go bankrupt.

Arrrrghhhhhhhhh!!!!!

Hey Fluke
I think this kind of traps make it tough cracking 700+ on gmat.....
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Re: Community activist: If Morganville wants to keep its central &nbs [#permalink] 18 Jun 2011, 03:28

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