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# During the late seventies when Japan was rapidly expanding

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SVP
Joined: 03 Feb 2003
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During the late seventies when Japan was rapidly expanding [#permalink]

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12 Jul 2004, 01:52
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100% (01:03) correct 0% (00:00) wrong based on 1 sessions

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During the late seventies when Japan was rapidly expanding its share of the American auto market, GM surveyed owners of GM cars and asked, "Would you be more willing to buy a large, powerful car or a small, economical car?" Seventy percent of those who responded said that they would prefer a large car. On the basis of this survey, GM decided to continue building large cars. Yet during the '80s, GM lost even more of the market to the Japanese.

Which one of the following, if it were determined to be true, would best explain this discrepancy?

(a) Only 10 percent of those who were polled replied.
(b) Ford which conducted a similar survey with similar results continued to
build large cars and also lost more of their market to the Japanese.
(c) The surveyed owners who preferred big cars also preferred big homes.
(d) GM determined that it would be more profitable to make big cars.
(e) Eighty percent of the owners who wanted big cars and only 40 percent
of the owners who wanted small cars replied to the survey.

http://www.collegedegreeguide.com/articles-fr/gmat.htm

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Manager
Joined: 02 Jul 2004
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12 Jul 2004, 02:03
I believe A. If I'm right I'll explain why I think E is wrong

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Senior Manager
Affiliations: CFA Level 2
Joined: 05 May 2004
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Location: Hanoi

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12 Jul 2004, 02:17
Sorry for another post but I didn't see EDIT button.
Actually A appeared for me at first. But see, 10% replied, it may represent the public opinion or it may not. E, the poll clearly didn't represent the public opinion.
_________________

"Life is like a box of chocolates, you never know what you'r gonna get"

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Manager
Joined: 02 Jul 2004
Posts: 217

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12 Jul 2004, 02:22
Well, yes, I agree with bigtooth81
I just don't like 80% and 40% in E, this does not overwiegh 70% in the poll

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SVP
Joined: 03 Feb 2003
Posts: 1603

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12 Jul 2004, 02:32
Yes, it is E.
See the official explanation via the link in the initial post.

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12 Jul 2004, 02:32
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