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# CR - Strengthen - Get your knives out!

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Current Student
Joined: 19 Mar 2012
Posts: 5120
Location: India
GMAT 1: 760 Q50 V42
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24 Aug 2014, 10:42
1
9

CR - Strengthen - Get your knives out!

1. The United States government uses only a household’s cash income before taxes to determine whether that household falls below the poverty line in a given year; capital gains, non-cash government benefits, and tax credits are not included. However, yearly cash income is not a fool-proof measure of a given household’s disposable income. For example, retirees who live off of capital gains from an extensive portfolio could earn hundreds of thousands of dollars, yet be classified by the government as living in “poverty” because this income is not included in the calculation. Which of the following, if true, validates the contention that the government’s calculation methods must be altered in order to provide statistics that measure true poverty?

• For more than 99% of those classified as living in poverty, yearly cash income comprises the vast majority of each household’s disposable income.
• While the government’s calculation method indicated a 12.5% poverty rate in 2003, the same calculation method indicated anywhere from a 9% to a 16% poverty rate during the preceding decade.
• Most established research studies conducted by the private sector indicate that the number of people truly living in poverty in the U.S. is less than that indicated by the government’s calculation method.
• Several prominent economists endorse an alternate calculation method which incorporates all income, not just cash income, and adjusts for taxes paid and other core expenses.
• The government’s calculation method also erroneously counts those who do not earn income in a given year but who have substantial assets on which to live during that year.

2. Historically, the drug industry promoted its products to physicians by educating them in their offices or at industry conferences. In the last 10 years, it has become much more commonplace for drug companies to advertise prescription drugs directly to consumers, via television advertising and other media. Some public health advocates have become concerned that patients, encouraged by advertising, may pursue the use of prescription drugs that may be inappropriate for the individual patient or situation. However, since physicians must prescribe these medications, there is no reason for such concern. Which of the following pieces of information would be most helpful in addressing the concern articulated by the public health advocates?

• Certain over-the-counter medications are as effective for many common medical conditions as more powerful nonprescription medications.
• Prescription medication television advertisements directed at the general public only appear on certain programs and are not seen by many potential consumers.
• Physicians are also subject to prescription drug advertisements that are directed toward consumers.
• Physicians are not susceptible to pressure from patients in determining appropriate courses of treatment, including drug prescriptions.
• Prescription medicines have been proven to be safe and effective treatments for many patient conditions.

3. Studies in restaurants show that the tips left by customers who pay their bill tend to be larger when the bill is presented with the server’s name hand-written on the bill. Psychologists hypothesize that simply seeing a handwritten name makes many consumers feel more of a personal identification with the server, encouraging larger tips. Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

• The effect noted in the studies applies to patrons paying with either credit cards or cash.
• Nametags for servers have not been shown to have any effect on the size of the bill.
• Greeting card companies have found that charities which send holiday cards with handwritten signatures are more likely to receive donations than those which send cards with printed signatures.
• The studies indicated much larger average tips if the customer ordered alcoholic beverages with his or her meal.
• Many of the restaurants in which the studies were conducted are located in tourist areas, where people are traveling for leisure activities.

4. Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. So, if a company wishes to announce the upcoming sale of a new device, it should wait until purchases of the old device have begun to decline. Which of the following, if true, would best support the analyst’s main assertion?

• New technology often becomes less expensive after an initial surge in sales.
• Media outlets, such as television programs and magazines, often report on the planned introduction of new devices while the sales of old devices are still strong.
• Many consumers are unable to determine whether new technology is superior to current technology.
• Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
• Consumers tend to be loyal to technology companies whose products they enjoy using.

5. More and more companies have begun to consume less energy by making themselves more efficient. Over time, these efforts could place the United States at the forefront of an emerging global market for cleaner technologies. Such efforts are also essential to tackling the two big energy-related issues of the age: global warming and the dependence on precarious supplies of oil. The federal government should encourage these efforts by providing the necessary incentives, whether as loans, direct grants or targeted tax breaks. Which of the following, if true, provides the most effective support for the argument?

• On the average, Canadian companies are more energy efficient than those in the United States.
• Experts believe that energy efficiency could lower the energy use of the United States to the level of 1995.
• In the past, government incentives have made advances in energy conservation feasible, especially in the auto industry.
• The dependence on foreign oil is a greater problem in the present than global warming.
• The market for cleaner technologies is currently relatively small because of the infrastructure requirements.
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Joined: 04 Jul 2013
Posts: 33
Schools: ISB '16

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24 Aug 2014, 22:23
My take.

1.C
2.E
3.C
4.B
5.C

Waiting for OAs
Intern
Joined: 30 Dec 2013
Posts: 5
Schools: AGSM '16

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25 Aug 2014, 11:51
1. C; although E was second choice
2. D
3. C; A was also a contender
4. B
5. C; D was also a contender.

Posted from my mobile device
Intern
Joined: 21 Dec 2013
Posts: 4
Concentration: Finance, General Management
GMAT 1: 700 Q50 V34

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25 Aug 2014, 20:05
1C 2D 3B 4C 5D
Manager
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26 Aug 2014, 03:47
1) D
2) B (a bit confused here)
3) C
4) B
5) C
Please post the OA as well.
_________________

I will give a Fight till the End

"To dream anything that you want to dream, that is the beauty of the human mind. To do anything that you want to do, that is the strength of the human will. To trust yourself, to test your limits, that is the courage to succeed."
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A person who is afraid of Failure can never succeed -- Amneet Padda

Don't Forget to give the KUDOS

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Joined: 25 May 2014
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26 Aug 2014, 22:54
Here are mine

1 - C
2 - D
3 - C
4 - B
5 - C
Intern
Joined: 06 Nov 2013
Posts: 31

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27 Aug 2014, 05:50
1-C
2-D
3-C
4-B
5-C
_________________

'I read somewhere... how important it is in life not necessarily to be strong, but to feel strong... to measure yourself at least once.'

Intern
Joined: 31 Jul 2014
Posts: 5

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27 Aug 2014, 07:01
My take on this:
1) C
2) D
3) C
4) B
5) C

The first question is the most difficult one in my opinion. Anyway, thanks for posting the questions. Looking forward to the OAs.
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Joined: 06 Feb 2014
Posts: 24

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28 Aug 2014, 04:05
My Take:
E
D
A
E
C
Intern
Joined: 27 Aug 2014
Posts: 6

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28 Aug 2014, 07:05
souvik101990 wrote:

CR - Strengthen - Get your knives out!

1. The United States government uses only a household’s cash income before taxes to determine whether that household falls below the poverty line in a given year; capital gains, non-cash government benefits, and tax credits are not included. However, yearly cash income is not a fool-proof measure of a given household’s disposable income. For example, retirees who live off of capital gains from an extensive portfolio could earn hundreds of thousands of dollars, yet be classified by the government as living in “poverty” because this income is not included in the calculation. Which of the following, if true, validates the contention that the government’s calculation methods must be altered in order to provide statistics that measure true poverty?

• For more than 99% of those classified as living in poverty, yearly cash income comprises the vast majority of each household’s disposable income.
• While the government’s calculation method indicated a 12.5% poverty rate in 2003, the same calculation method indicated anywhere from a 9% to a 16% poverty rate during the preceding decade.
• Most established research studies conducted by the private sector indicate that the number of people truly living in poverty in the U.S. is less than that indicated by the government’s calculation method.
• Several prominent economists endorse an alternate calculation method which incorporates all income, not just cash income, and adjusts for taxes paid and other core expenses.
• The government’s calculation method also erroneously counts those who do not earn income in a given year but who have substantial assets on which to live during that year.

2. Historically, the drug industry promoted its products to physicians by educating them in their offices or at industry conferences. In the last 10 years, it has become much more commonplace for drug companies to advertise prescription drugs directly to consumers, via television advertising and other media. Some public health advocates have become concerned that patients, encouraged by advertising, may pursue the use of prescription drugs that may be inappropriate for the individual patient or situation. However, since physicians must prescribe these medications, there is no reason for such concern. Which of the following pieces of information would be most helpful in addressing the concern articulated by the public health advocates?

• Certain over-the-counter medications are as effective for many common medical conditions as more powerful nonprescription medications.
• Prescription medication television advertisements directed at the general public only appear on certain programs and are not seen by many potential consumers.
• Physicians are also subject to prescription drug advertisements that are directed toward consumers.
• Physicians are not susceptible to pressure from patients in determining appropriate courses of treatment, including drug prescriptions.
• Prescription medicines have been proven to be safe and effective treatments for many patient conditions.

3. Studies in restaurants show that the tips left by customers who pay their bill tend to be larger when the bill is presented with the server’s name hand-written on the bill. Psychologists hypothesize that simply seeing a handwritten name makes many consumers feel more of a personal identification with the server, encouraging larger tips. Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

• The effect noted in the studies applies to patrons paying with either credit cards or cash.
• Nametags for servers have not been shown to have any effect on the size of the bill.
• Greeting card companies have found that charities which send holiday cards with handwritten signatures are more likely to receive donations than those which send cards with printed signatures.
• The studies indicated much larger average tips if the customer ordered alcoholic beverages with his or her meal.
• Many of the restaurants in which the studies were conducted are located in tourist areas, where people are traveling for leisure activities.

4. Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. So, if a company wishes to announce the upcoming sale of a new device, it should wait until purchases of the old device have begun to decline. Which of the following, if true, would best support the analyst’s main assertion?

• New technology often becomes less expensive after an initial surge in sales.
• Media outlets, such as television programs and magazines, often report on the planned introduction of new devices while the sales of old devices are still strong.
• Many consumers are unable to determine whether new technology is superior to current technology.
• Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
• Consumers tend to be loyal to technology companies whose products they enjoy using.

5. More and more companies have begun to consume less energy by making themselves more efficient. Over time, these efforts could place the United States at the forefront of an emerging global market for cleaner technologies. Such efforts are also essential to tackling the two big energy-related issues of the age: global warming and the dependence on precarious supplies of oil. The federal government should encourage these efforts by providing the necessary incentives, whether as loans, direct grants or targeted tax breaks. Which of the following, if true, provides the most effective support for the argument?

• On the average, Canadian companies are more energy efficient than those in the United States.
• Experts believe that energy efficiency could lower the energy use of the United States to the level of 1995.
• In the past, government incentives have made advances in energy conservation feasible, especially in the auto industry.
• The dependence on foreign oil is a greater problem in the present than global warming.
• The market for cleaner technologies is currently relatively small because of the infrastructure requirements.

My brain hurt so bad. I found some knives and already put on my table
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Joined: 25 May 2013
Posts: 1

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29 Aug 2014, 05:15
I would go with the following :

1. C
2. D
3. E
4. E
5. C
Manager
Joined: 30 Mar 2013
Posts: 113

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Updated on: 01 Sep 2014, 14:15
1C 2D 3C 4B 5C

Originally posted by usre123 on 29 Aug 2014, 14:40.
Last edited by usre123 on 01 Sep 2014, 14:15, edited 1 time in total.
Intern
Joined: 01 Aug 2014
Posts: 3

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30 Aug 2014, 07:21
1) C
2) D
3) C
4) B
5) C
Director
Joined: 05 Nov 2012
Posts: 500
Concentration: Technology, Other

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30 Aug 2014, 10:32
Request expert comments on this one.

1. The United States government uses only a household’s cash income before taxes to determine whether that household falls below the poverty line in a given year; capital gains, non-cash government benefits, and tax credits are not included.
However, yearly cash income is not a fool-proof measure of a given household’s disposable income.
For example, retirees who live off of capital gains from an extensive portfolio could earn hundreds of thousands of dollars, yet be classified by the government as living in “poverty” because this income is not included in the calculation.

Which of the following, if true, validates the contention that the government’s calculation methods must be altered in order to provide statistics that measure true poverty?

• For more than 99% of those classified as living in poverty, yearly cash income comprises the vast majority of each household’s disposable income.[weakens]
• While the government’s calculation method indicated a 12.5% poverty rate in 2003, the same calculation method indicated anywhere from a 9% to a 16% poverty rate during the preceding decade. [irrelavent]
• Several prominent economists endorse an alternate calculation method which incorporates all income, not just cash income, and adjusts for taxes paid and other core expenses. [endorsing another method doesnt help in strengthening the claim.]

C Vs E? Which one to choose.Both seems correct to me.
• Most established research studies conducted by the private sector indicate that the number of people truly living in poverty in the U.S. is less than that indicated by the government’s calculation method.[We can accept the study at face value]
• The government’s calculation method also erroneously counts those who do not earn income in a given year but who have substantial assets on which to live during that year. [Correct.Shows another instance of the mistake in the calculation which in-turn strengthens the claim that calculation is not correct and needs amendment.]
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Director
Joined: 05 Nov 2012
Posts: 500
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30 Aug 2014, 10:40
2.
Historically, the drug industry promoted its products to physicians by educating them in their offices or at industry conferences.
In the last 10 years, it has become much more commonplace for drug companies to advertise prescription drugs directly to consumers, via television advertising and other media.
Some public health advocates have become concerned that patients, encouraged by advertising, may pursue the use of prescription drugs that may be inappropriate for the individual patient or situation.
However, since physicians must prescribe these medications, there is no reason for such concern.
Assumption:Physicians wont be influenced by patients.
Which of the following pieces of information would be most helpful in addressing the concern articulated by the public health advocates?

• Certain over-the-counter medications are as effective for many common medical conditions as more powerful nonprescription medications. [irrelevant]
• Prescription medication television advertisements directed at the general public only appear on certain programs and are not seen by many potential consumers. [doesnt help much with conclusion]
• Physicians are also subject to prescription drug advertisements that are directed toward consumers. [No need to worry abt this as author already rely on doctors decision.]
• Physicians are not susceptible to pressure from patients in determining appropriate courses of treatment, including drug prescriptions.
• Prescription medicines have been proven to be safe and effective treatments for many patient conditions. [but what abt the others.if its not for them then?]
_________________

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Director
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30 Aug 2014, 10:49
3. Studies in restaurants show that the tips left by customers who pay their bill tend to be larger when the bill is presented with the server’s name hand-written on the bill.
Psychologists hypothesize that simply seeing a handwritten name makes many consumers feel more of a personal identification with the server, encouraging larger tips.

Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

• The effect noted in the studies applies to patrons paying with either credit cards or cash. [may weaken by limiting the study to a particular group]
• Name tags for servers have not been shown to have any effect on the size of the bill. [irrelevant]
• Greeting card companies have found that charities which send holiday cards with handwritten signatures are more likely to receive donations than those which send cards with printed signatures. >> This gives another examples which solidifies psychologists' theory.
• The studies indicated much larger average tips if the customer ordered alcoholic beverages with his or her meal. [in a way wld weaken by introducing other factor]
• Many of the restaurants in which the studies were conducted are located in tourist areas, where people are traveling for leisure activities. [irrelevant or at best weaken]
_________________

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Director
Joined: 05 Nov 2012
Posts: 500
Concentration: Technology, Other

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30 Aug 2014, 10:52
1
4. Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success.
But announcing new technology too soon after the introduction of a successful device can backfire. .
Once consumers hear about the new device, they may stop buying the one currently on sale.
So, if a company wishes to announce the upcoming sale of a new device, it should wait until purchases of the old device have begun to decline.
Assumption: As soon as the devices r released media publishes the news of release which consumer eventually hears.

Which of the following, if true, would best support the analyst’s main assertion?

• New technology often becomes less expensive after an initial surge in sales.
• Media outlets, such as television programs and magazines, often report on the planned introduction of new devices while the sales of old devices are still strong.
• Many consumers are unable to determine whether new technology is superior to current technology.
• Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
• Consumers tend to be loyal to technology companies whose products they enjoy using.
_________________

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Regards

Director
Joined: 05 Nov 2012
Posts: 500
Concentration: Technology, Other

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30 Aug 2014, 11:03
Request experts to initiate discussion on this.
Regards.

5. More and more companies have begun to consume less energy by making themselves more efficient.
Over time, these efforts could place the United States at the forefront of an emerging global market for cleaner technologies.
Such efforts are also essential to tackling the two big energy-related issues of the age: global warming and the dependence on precarious supplies of oil.

Conclusion: The federal government should encourage these efforts by providing the necessary incentives, whether as loans, direct grants or targeted tax breaks.

Assumption:
these incentives would encourage industries to continue on the line of energy efficiency.

Which of the following, if true, provides the most effective support for the argument?

• On the average, Canadian companies are more energy efficient than those in the United States. [irrelevant]
• Experts believe that energy efficiency could lower the energy use of the United States to the level of 1995. [doesnt help much]
• In the past, government incentives have made advances in energy conservation feasible, especially in the auto industry.
• The dependence on foreign oil is a greater problem in the present than global warming. [doesnt matter]
• The market for cleaner technologies is currently relatively small because of the infrastructure requirements.

IMO the only valid contenders are C and E. I initially selected E, but ,after rereading it, i felt that I am making too many assumptions with it.
Whereas C is more direct, by mentioning a +ve effect of the mentioned suggested conclusion.
Though there is one thing i dont like abt C is that how can a past outcome can support same result in future.But then there is no other options.
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02 Sep 2014, 02:10
JarvisR wrote:
Request expert comments on this one.

1. The United States government uses only a household’s cash income before taxes to determine whether that household falls below the poverty line in a given year; capital gains, non-cash government benefits, and tax credits are not included.
However, yearly cash income is not a fool-proof measure of a given household’s disposable income.
For example, retirees who live off of capital gains from an extensive portfolio could earn hundreds of thousands of dollars, yet be classified by the government as living in “poverty” because this income is not included in the calculation.

Which of the following, if true, validates the contention that the government’s calculation methods must be altered in order to provide statistics that measure true poverty?

• For more than 99% of those classified as living in poverty, yearly cash income comprises the vast majority of each household’s disposable income.[weakens]
• While the government’s calculation method indicated a 12.5% poverty rate in 2003, the same calculation method indicated anywhere from a 9% to a 16% poverty rate during the preceding decade. [irrelavent]
• Several prominent economists endorse an alternate calculation method which incorporates all income, not just cash income, and adjusts for taxes paid and other core expenses. [endorsing another method doesnt help in strengthening the claim.]

C Vs E? Which one to choose.Both seems correct to me.
• Most established research studies conducted by the private sector indicate that the number of people truly living in poverty in the U.S. is less than that indicated by the government’s calculation method.[We can accept the study at face value]
• The government’s calculation method also erroneously counts those who do not earn income in a given year but who have substantial assets on which to live during that year. [Correct.Shows another instance of the mistake in the calculation which in-turn strengthens the claim that calculation is not correct and needs amendment.]

Hi JarvishR,
a quick clarification, just because option E states the word erroneously, doesn't imply that the calculation methods practiced by the US government need changes. If it erroneously adds OTHER sources of income along with the disposable household incomes, means that it actually doesn't require any changes in the methods in which incomes are calculated because it is already taking all the sources of income into consideration. If it is already considering capital assets(might be erroneously), disposable incomes etc for calculating the number of people below poverty line, it doesnt actually require changes in the calculation procedures.
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10 Sep 2014, 12:39
Re: CR - Strengthen - Get your knives out! &nbs [#permalink] 10 Sep 2014, 12:39

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