Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 2001:30 PM EST
-02:30 PM IST
Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
Nov 1912:30 PM EST
-01:30 PM EST
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2407:00 PM PST
-08:00 PM PST
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
17 Aug 2018, 05:36
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
70% (01:57) correct
30%
(02:09)
wrong
based on 1194
sessions
History
Date
Time
Result
Not Attempted Yet
Company Spokesperson: This year, more than 70% of the guests who stayed with us over the past summer are planning to return to our resorts for a summer vacation. Therefore, I believe that we are well-positioned for another strong and profitable quarter.
Industry Analyst: This is not necessarily true. Nearly three quarters of the company`s profits come from the attendance of its theme parks located at its major resorts, and it is not certain how this segment will perform this summer.
Which of the following statements, if true, would support the criticism of the Industry Analyst?
A. The company`s management possesses more accurate financial information than is accessible to industry analysts.
B. The industry analyst represents an independent investment firm, which is not affiliated with the company.
C. The company`s revenues and profits have more than doubled over the past 3 years.
D. Because of the seasonality in the vacation travel and theme park attendance, summer is the most important season for the firm`s operations, accounting for over half of the firm's annual profits.
E. The vast majority of guests who visit the company`s resorts attend its theme parks only once, usually during their first week of stay.
Industry Analyst: This is not necessarily true. Nearly three quarters of the company`s profits come from the attendance of its theme parks located at its major resorts, and it is not certain how this segment will perform this summer.
Which of the following statements, if true, would support the criticism of the Industry Analyst?
A. The company`s management possesses more accurate financial information than is accessible to industry analysts.
B. The industry analyst represents an independent investment firm, which is not affiliated with the company.
C. The company`s revenues and profits have more than doubled over the past 3 years.
D. Because of the seasonality in the vacation travel and theme park attendance, summer is the most important season for the firm`s operations, accounting for over half of the firm's annual profits.
E. The vast majority of guests who visit the company`s resorts attend its theme parks only once, usually during their first week of stay.
17 Aug 2018, 11:02
Kudos
Bookmarks
I thought I had bumped into the Quant section by checking the OP 
Premise: Company believes that 70% of the guests will return to the resort for summer & analyst believes that they generate more revenue out of theme parks.
Statements a,b & c fall out of scope in explaining so as to why people would not visit theme parks. We are now left with D & E
D suggests that summers are important but do not talk about any quarterly movement in terms or PnL; choice D has thus been knocked out.
Choice E stands.
Premise: Company believes that 70% of the guests will return to the resort for summer & analyst believes that they generate more revenue out of theme parks.
Statements a,b & c fall out of scope in explaining so as to why people would not visit theme parks. We are now left with D & E
D suggests that summers are important but do not talk about any quarterly movement in terms or PnL; choice D has thus been knocked out.
Choice E stands.
21 May 2019, 09:12
Kudos
Bookmarks
Bunuel
OFFICIAL EXPLANATION
The company management anticipates strong financial results merely based on the evidence that many of the previous year’s guests are planning to return this summer. The industry analyst disagrees with this projection, claiming that the firm’s profits are largely driven by the attendance of the theme parks and their performance is uncertain. To strengthen the position of the industry analyst, we need to demonstrate that a high rate of returning customers is not necessarily sufficient to yield strong financial results for the company’s theme parks, which account for the vast majority of the firm’s profits.
(A) If the management possesses more accurate financial information, this evidence would weaken rather than strengthen the claim of the industry analyst.
(B) The issue of analyst affiliation is outside the scope of the argument. While the independence of the analyst suggests an unbiased projection, it does not necessarily lead to a more accurate projection. For example, an analyst who is connected to the company may be privy to inside information resulting in a more accurate forecast than one from an independent analyst.
(C) Since both the management and the industry analyst are concerned with the discussion of future rather than historical performance, this statement is outside the scope of the argument. If anything, a strong past record would undermine rather than support the analyst’s claim.
(D) This answer choice demonstrates the importance of summer business for the firm’s operations but provides no information regarding the future outlook, thus neither strengthening nor weakening the argument of the industry analyst.
(E) CORRECT. This answer supports the claim of the industry analyst by demonstrating that the company is unlikely to generate substantial profits from the high number of returning guests. If the vacationers visiting the company’s resorts attend its theme parks only once, the high number of returning customers is unlikely to benefit the firm’s theme parks, which account for the vast majority of the company’s profits.
