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Due to high jet fuel costs, airline carriers are looking for new ways

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Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 31 Jul 2008, 21:01
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D
E

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  75% (hard)

Question Stats:

55% (01:49) correct 45% (01:52) wrong based on 935 sessions

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Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

The above statements, if true, indicate that Airline A has made which of the following conclusions?


A. The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.

B. The Federal Aviation Administration will approve Airline A's specific proposal.

C. The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.

D. There are no safer ways in which Airline A can increase revenues.

E. Passenger safety is less important than increasing revenue.
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Re: Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post Updated on: 18 Oct 2015, 02:32
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Only two pieces of information are given about Airline A's standing room "seats" proposal. First, that it is geared toward increasing revenue in order to counteract declining profits. And second, that, since the proposal relates to passenger safety, it must be approved by the Federal Aviation Administration. Airline A must have concluded that the cost of implementation of its proposal is less than the revenue that the new seats will generate.

(A) CORRECT. Since Airline A knows that its proposal would have to comply with safety standards, it must have concluded that the cost of compliance is worth it. In other words, the only way for Airline A to achieve its goal of increasing profit is to implement ideas that will generate more revenue than they cost. Airline A must therefore have concluded that the standing room only "seats" meet this criteria.

(B) The statements in the passage imply nothing about whether Airline A believes that the Federal Aviation Administration will approve the proposal. Although Airline A must believe that the proposal has a chance of being approved (otherwise it's unlikely to have proposed it), the airline might have proposed its specific plan knowing that it might not be approved or, that it might have to be changed in certain ways.

(C) Airline A's goal is simply to "counteract declining profits" caused by the high cost of jet fuel. This does not mean, however, that the proposal must fully mitigate the cost of jet fuel. As long as the proposal increases revenue without a corollary increase in cost, it will in some way (even if it's relatively small) counteract declining profits.

(D) The passage does not mention any other ways that Airline A has considered increasing revenue. Therefore, it is impossible to conclude anything about Airline A's perception of its standing room "seats" proposal to any other ideas.

(E) The statements in the passage do not address Airline A's view regarding the safety of the standing room only "seats". It is very possible that Airline A views its proposal as safe and sees no conflict between passenger safety and increasing revenue, much less that it has made any determination about the relative importance of these two issues.
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Originally posted by shasadou on 24 Aug 2015, 11:44.
Last edited by shasadou on 18 Oct 2015, 02:32, edited 1 time in total.
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Re: Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 23 Nov 2015, 07:46
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ANS = A.

Took 3:22. D was close. If the statements are true, then airline A might have decided to go for the new seats room, only after coming to the conclusion that it will increase their profits (after safety costs). Eliminated D coz the main argument is about increasing the profits, not finding ways to increase the profits. :|
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Re: Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 15 Apr 2017, 13:37
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As this is a CR Question let’s try to read the question stem before we read the argument. This question talks about – IF TRUE ------ WHICH OF THE FOLLOWING CONCLUSIONS IS MADE, which means this is an INFERENCE QUESTION.

Argument Logical Structure:

High Jet fuel cost, leading decreased profits – Airlines A plans to increase the revenue through some new ways.
Airline A proposes increasing number of passengers that can fit on its airplanes by creating a standing room only seats by making certain arrangements.
Considering this proposal is related to passenger safety it cannot be implemented without approval from Federation Aviation Administration.

Lets evaluate answer choices.

(A) The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
- This looks like correct inference. Considering airlines is assuming that cost involved in accommodating the new seating arrangement either one time (making changes to the airplane) or recurring (customer complains, maintenance, etc.) are less than the revenue generated by these seats. Lets read all other options before we mark this as our final answer choice.

(B) The Federal Aviation Administration will approve Airline A's specific proposal
- It cannot be inference, rather can be one of assumption


(C) The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
- Airlines is looking to increase the revenue and not necessarily looking to mask only the cost of jet fuel. As long as revenue increases Airlines should be fine with it but not fuel cost – C is incorrect

(D) There are no safer ways in which Airline A can increase revenues.
- Other ways are not discussed, so this is out of scope


(E) Passenger safety is less important than increasing revenue.
- This cannot be inferred based on given information as Airlines is only talking about increasing revenue through new arrangement. E is incorrect too.


A is the CORRECT Answer.

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Re: Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 06 Sep 2018, 23:27
Why is option c incorrect? It is pretty argument specific. We need to look at the cost of jet fuels rather than the cost of ensuring that the seats in the airplane meet the safety standards. Correct me if I am wrong.

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Re: Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 07 Jun 2019, 12:42
I have encountered exactly the same question as the one below but with one word changed (bolded):

The above statements, if true, indicate that Airline A has made which of the following assumptions?

I went for B, even though I am not convinced that ans. A is fully right. I interpreted cost of ensuring that seats meet safety standards as a one-off expense (CAPEX) In such a situation the answer is irrelevant for the argument --> higher CAPEX has nothing with long-term profit

If this is indeed a running cost, I agree that answer A makes sense, even though answer B is not bad (without approving the regulations they will not increase profit in the proposed way).


goalsnr wrote:
Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

The above statements, if true, indicate that Airline A has made which of the following conclusions?


A. The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.

B. The Federal Aviation Administration will approve Airline A's specific proposal.

C. The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.

D. There are no safer ways in which Airline A can increase revenues.

E. Passenger safety is less important than increasing revenue.
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Re: Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 02 Aug 2019, 13:31
GMATNinja, nightblade354 can you break down this cr question forme. Esp. the conclusion and the premise part
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Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 03 Aug 2019, 05:37
Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

Premise: Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits
Premise: Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness
Premise: This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

Simple break down, though we are missing a traditional conclusion because they want you to figure that out. This is a fill in the blank question. What would fit at the end of the paragraph to make this work? Well, we are told that prices have gone up. And an airline wants to add unusual seats, but first needs approval. What can we conclude from this? Too many things, really. But keep this structure in mind as we go through answer choices. If in doubt, plug the answer choice into the back of the answer and see if it works out!


The above statements, if true, indicate that Airline A has made which of the following conclusions?


A. The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards. -- Hmm. What if this wasn't true? Our entire argument would fall apart. Further, it fits perfectly with our premises: P1: need more money so we make weird seats; P2: cannot be put into place without proper approval; Therefore, even with approval it will still make us money. Bingo!

B. The Federal Aviation Administration will approve Airline A's specific proposal. -- Tricky trap answer choice. Although this sounds good, can we really conclude this from the statements above? The airline has proposed something, but who is to say that it gets approved? Maybe it gets shot down and we find a better way to make money while not endangering people's lives. Think about this answer as if it were not true. Does it wreck out argument? Not even close, as I described above. Further, use the premises to guide you. Do these premises say we need this plan of action, or do they point to an option that could work? This will help you eliminate (B). Out.

C. The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel. -- So the new seats alone cost more than the cost of fuel? Seriously? You are charging people more to get some sick-thrill out of being strapped to a board while flying? We want to know that all of the seats together would be more than fuel. Out.

D. There are no safer ways in which Airline A can increase revenues. -- Maybe there are, maybe there aren't. But the argument never argues for the safest way to fly. The argument focuses on profits and an airline's approval process. Out.

E. Passenger safety is less important than increasing revenue. -- OK, where do we see this? We are told that the company needs to get this approved, so customer safety is important. We cannot conclude that seats are any less safe than a normal seat. And even if we could, does that prove passenger safety is less important than revenue? Way too many assumptions need to be forced, aside from the fact that this just doesn't line up with our argument. Out.
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Due to high jet fuel costs, airline carriers are looking for new ways  [#permalink]

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New post 09 Aug 2019, 07:29
Shreshtha55 wrote:
GMATNinja, nightblade354 can you break down this cr question forme. Esp. the conclusion and the premise part


Since this is the "draw the conclusion" question, it, like many others, do not have a conclusion. So, it has no premise either.

The stimulus consists of facts, and the right answer should be coherent with the facts presented. C and E present an irrelevant comparison, B makes a prediction, the doubt of which, is the reason the passage exists. There must be some other ways too to increase the revenue, just that's not in the scope of this question - so eliminate D

You can also apply the "negation test" to re-check. A valid inference/conclusion, if negated, would contradict the given information.

https://www.kaptest.com/study/lsat/lsat-logical-reasoning-5-tips-for-inferences/

Cheers! :)
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Due to high jet fuel costs, airline carriers are looking for new ways   [#permalink] 09 Aug 2019, 07:29
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