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# Company Spokesperson: This year, more than 70% of the guests

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CEO
Joined: 17 Nov 2007
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Company Spokesperson: This year, more than 70% of the guests [#permalink]

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04 Jun 2008, 02:14
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80% (00:36) correct 20% (00:00) wrong based on 17 sessions

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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.

My question is how it is close to real GMAT
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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 02:57
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walker wrote:
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.

My question is how it is close to real GMAT

Is this from the real on 28/5/2008?
E for me!
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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 04:10
ouch,,this is tricky

A,B clearly wrong.
C doesn't seem to make a difference, its out of scope

D days that summer > 0.5 profits.
but if only 70% of people attend the park again (due to variation), this has an effect on a large chunk of profit. So the analyst's statement "..not necessarily true" is supported.

E is saying that people visit themeparks only once. So? This could be enough to generate lots of profit in one visit.

my ans: D

but very tough Q i must say (took me over 3 mins)

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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 04:58
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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.

E for me. 70% already visited park during their first vacations. so from E we know that they probably wont attend park even if it's open.

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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 06:13
Snayt wrote:
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.

E for me. 70% already visited park during their first vacations. so from E we know that they probably wont attend park even if it's open.

E is looking a whole lot better now.. +1

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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 06:36
i think D is the best answer..its D because it says if the summer is short then people may not likely to go to theme parks..thus the revenue maybe at risk..

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CEO
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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 07:08
walker wrote:
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.

My question is how it is close to real GMAT

I am jumping on the E train. I don't think D really supports the criticism.

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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 08:13
OA is E

OE:
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.
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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 08:52
walker wrote:
OA is E

OE:
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.

Good questions. i got it wrong though

may i know the source . thanks
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CEO
Joined: 17 Nov 2007
Posts: 3584

Kudos [?]: 4586 [0], given: 360

Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40
Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 09:14
Manhattan GMAT test #2
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Re: CR - Theme Parks [#permalink]

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04 Jun 2008, 10:02
Walker - I guess you did not get the answer you were hoping to get out of this post - representative of GMAT or not?

I went with D, since it explains the importance of summer season for the business. But, this time the more obvious one, that is E, ending up being the correct one.

At this point, I'm curious as to how close these get questions get to the GMAT CR's.

Later!

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Re: Company Spokesperson: This year, more than 70% of the guests [#permalink]

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14 Mar 2015, 05:13
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Re: Company Spokesperson: This year, more than 70% of the guests   [#permalink] 14 Mar 2015, 05:13
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