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Following several years of declining advertising sales, the

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Following several years of declining advertising sales, the Greenvile Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives' knowledge of clients' business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?

(B) Has the circulation of the Greenvile Times increased substantially in the last two years?

(C) Among all types of industry and retailing that use the Greenvile Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper's advertising sales?

(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?

(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?

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Re: Following several years of declining advertising sales, the [#permalink]

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Following several years of declining advertising sales, the Greenvile Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives’ knowledge of clients’ business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?
(B) Has the circulation of the Greenvile Times increased substantially in the last two years?
(C) Among all types of industry and retailing that use the Greenvile Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper’s advertising sales?
(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?
(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?


THE REORGANISATION CAUSED THE INCREASE IN ADVERTISING SALES....... WE NEED TO CHECK IF THERE COULD HAVE BEEN AN ALTERNATE CAUSE FOT THE SAME?
WHAT IF MORE PEOPLE NOW READ THE Greenvile Times THAN BEFORE AND HENCE THE ADVERTISING SALES HAS INCREASED........

HERE "B" AND " D" ARE CONTENDERS......


(B) Has the circulation of the Greenvile Times increased substantially in the last two years? YES/ NO TO THIS QUESTION WILL DECIDE IF THE NEW REORGANIZATION WAS THE CAUSE FOR INCREASED SALES OR NOT.... CORRECT..

(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?.....IF FIXED AMOUNT OF ADVERTISING HAS ALREADY BEEN STIPULATED, HOW COULD THE SALES INCREASE ? IF IT SAID THAT THE CLIENTILE BASE INCREASED WITH FIXED AMOUNT OF STANDING ORDERS, THEN IT COULD HAVE BEEN CORRECT...... HENCE INCORRECT..


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Re: Following several years of declining advertising sales, the [#permalink]

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semwal wrote:
kimmyg wrote:
Following several years of declining advertising sales, the Greenvile Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives’ knowledge of clients’ business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?
(B) Has the circulation of the Greenvile Times increased substantially in the last two years?
(C) Among all types of industry and retailing that use the Greenvile Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper’s advertising sales?
(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?
(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?


THE REORGANISATION CAUSED THE INCREASE IN ADVERTISING SALES....... WE NEED TO CHECK IF THERE COULD HAVE BEEN AN ALTERNATE CAUSE FOT THE SAME?
WHAT IF MORE PEOPLE NOW READ THE Greenvile Times THAN BEFORE AND HENCE THE ADVERTISING SALES HAS INCREASED........

HERE "B" AND " D" ARE CONTENDERS......


(B) Has the circulation of the Greenvile Times increased substantially in the last two years? YES/ NO TO THIS QUESTION WILL DECIDE IF THE NEW REORGANIZATION WAS THE CAUSE FOR INCREASED SALES OR NOT.... CORRECT..

(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?.....IF FIXED AMOUNT OF ADVERTISING HAS ALREADY BEEN STIPULATED, HOW COULD THE SALES INCREASE ? IF IT SAID THAT THE CLIENTILE BASE INCREASED WITH FIXED AMOUNT OF STANDING ORDERS, THEN IT COULD HAVE BEEN CORRECT...... HENCE INCORRECT..


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Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives' knowledge of clients' businesses by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenville Times is generated by advertising sales?
(B) Has the circulation of the Greenville Times increased substantially in the last two years?
(C) Among all the types of industry and retailing that use the Greenville Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper’s advertising sales?
(D) Do any clients of the sales representatives of the Greenville Times have a standing order with the Times for a fixed amount of advertising per month?
(E) Among the advertisers in the Greenville Times, are there more types of retail business or more types of industrial business?

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Re: Following several years of declining advertising sales, the [#permalink]

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Good Application of causation effect to above Question .

As the Question says re-organization caused the increase in revenue of advertising sales, we need to evaluate whether there is any other factor that contributed to the increase in revenue of advertising sales.

Let's go through the options once,

a. two years ago, what proportion of the greenville times'' total revenue was generated by advertising sales

choice a talks about revenue which was generated two yeas ago -- irrelevant

c. Has there been a substantial turnover in personnel in the advertising sales force over the last 2 years?

from the premise we are given that advertising sales are decreasing. How could there be turnover ??

d. Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?

If the order that was placed is already fixed in past , how could that give increase sales ??

e. has the economy in greenvile and the surrounding regions been growing rapidly over the last 2 years?

same expalnation as in c

Only choice b explains in right way . there might be another factor(circulation of the Greenvile Times increased) .----------hence correct

TooLong150 wrote:
semwal wrote:
kimmyg wrote:
Following several years of declining advertising sales, the Greenvile Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives’ knowledge of clients’ business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?
(B) Has the circulation of the Greenvile Times increased substantially in the last two years?
(C) Among all types of industry and retailing that use the Greenvile Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper’s advertising sales?
(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?
(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?


THE REORGANISATION CAUSED THE INCREASE IN ADVERTISING SALES....... WE NEED TO CHECK IF THERE COULD HAVE BEEN AN ALTERNATE CAUSE FOT THE SAME?
WHAT IF MORE PEOPLE NOW READ THE Greenvile Times THAN BEFORE AND HENCE THE ADVERTISING SALES HAS INCREASED........

HERE "B" AND " D" ARE CONTENDERS......


(B) Has the circulation of the Greenvile Times increased substantially in the last two years? YES/ NO TO THIS QUESTION WILL DECIDE IF THE NEW REORGANIZATION WAS THE CAUSE FOR INCREASED SALES OR NOT.... CORRECT..

(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?.....IF FIXED AMOUNT OF ADVERTISING HAS ALREADY BEEN STIPULATED, HOW COULD THE SALES INCREASE ? IF IT SAID THAT THE CLIENTILE BASE INCREASED WITH FIXED AMOUNT OF STANDING ORDERS, THEN IT COULD HAVE BEEN CORRECT...... HENCE INCORRECT..


KUDOS IF YOU PLEASE....


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Re: Following several years of declining advertising sales, the [#permalink]

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semwal wrote:
kimmyg wrote:
Following several years of declining advertising sales, the Greenvile Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives’ knowledge of clients’ business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?
(B) Has the circulation of the Greenvile Times increased substantially in the last two years?
(C) Among all types of industry and retailing that use the Greenvile Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper’s advertising sales?
(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?
(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?


THE REORGANISATION CAUSED THE INCREASE IN ADVERTISING SALES....... WE NEED TO CHECK IF THERE COULD HAVE BEEN AN ALTERNATE CAUSE FOT THE SAME?
WHAT IF MORE PEOPLE NOW READ THE Greenvile Times THAN BEFORE AND HENCE THE ADVERTISING SALES HAS INCREASED........

HERE "B" AND " D" ARE CONTENDERS......


(B) Has the circulation of the Greenvile Times increased substantially in the last two years? YES/ NO TO THIS QUESTION WILL DECIDE IF THE NEW REORGANIZATION WAS THE CAUSE FOR INCREASED SALES OR NOT.... CORRECT..

(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?.....IF FIXED AMOUNT OF ADVERTISING HAS ALREADY BEEN STIPULATED, HOW COULD THE SALES INCREASE ? IF IT SAID THAT THE CLIENTILE BASE INCREASED WITH FIXED AMOUNT OF STANDING ORDERS, THEN IT COULD HAVE BEEN CORRECT...... HENCE INCORRECT..


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I agree but still, if anyone can eliminate D in a more convincing way?
It could be indeed, that all clients had standing contracts and all that the new reorganization did was reduce sales.
maybe they are selling less but are still dependent on contracts before the reorganization?

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Re: Following several years of declining advertising sales, the [#permalink]

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Re: Following several years of declining advertising sales, the [#permalink]

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Revenue of any company would increase only if its sales improve.
Only if it has more sales, will it get more advertisement orders.
More sales + more advertisement = more revenue.
If the times sells lesser, then it would have a cut down in its advertisement orders and creating more loss.
So answer "B" is correct.

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 15 Jan 2006, 21:54
A sounds ok to me...
Even if the advertising revenue has increased, we need to find out the ratio of the advertising revenue to that of total revenue....
Wht if the advertising revenue has not kept pace with the toal revenue, in that case the reorganisation has no effect..

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Re: Following several years of declining advertising sales, the [#permalink]

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D for me
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Re: Following several years of declining advertising sales, the [#permalink]

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New post 16 Jan 2006, 00:44
Not an easy one! I'll go with A.
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Re: Following several years of declining advertising sales, the [#permalink]

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New post 16 Jan 2006, 07:31
A) What proportion of the total revenue of Greenville Times is generated by advertising sales?
----- Correct answer

(B) Has the circulation of the Greenville Times increased substantially in the last two years?
---- two years is unreleated

(C) Among all the types of industry and retailing that use the Greenville Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper's advertising sales?
---- type of accounts unreleated

(D) Do any clients of the sales representatives of the Greenville Times have a standing order with the Times for a fixed amount of advertising per month?
--- unreleated

(E) Among the advertisers in the Greenville Times, are there more types of retail business or more types of industrial business?
---- type of business not important

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 17 Jan 2006, 17:56
OA is B.

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 17 Jan 2006, 19:43
Is there some explaination for that? I can't believe it.. This was a tough one.. I would like to know how did they come to the conclusion of the last 2 years? When was this change of advertising taken place?

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Re: Following several years of declining advertising sales, the [#permalink]

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The reasoning: What additional evidence would help determine the source of the increased revenue? In order to attribute to the reorganization of the sales force, other possible causes must be eliminated. (I was headed this direction though). Newspapers advertising rates are linked to circulation; when circulation increases, higher rates can be charged and revenues will increase. (I though prior knowledge is NOT required in GMAT???) An alternative explanation might be a significant rise in circulation, so it would be particularly helpful to know if circulation had increased.

B: Correct. This statement provides another possible explanation for increased revenue of advertising sales, and so the answer to this question would help to clarifiy the reason for the increased revenue.

:ouch

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 17 Jan 2006, 22:50
Got B.
The line of reasoning I follow for such questions, is whether there was some other reason ? I eliminated the rest , said a prayer and picked B.

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 18 Aug 2008, 19:10
IMO B. If correct then will give the reasoning

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 18 Aug 2008, 19:29
clear B

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 18 Aug 2008, 19:52
IMO D (very tough choice as no clear answers).

Reasoning as follows: The intention of reorganization was to have SR focus on only one clients. Earlier, due to a geographical focus, a comprehensive relationship with a single client might not have developed. However, after the reorganization a better relationship with the client might have developed probably leading to greater standing orders per month.

As I said, this is not a very clear-cut choice, but in my very humble opinion the "best" answer choice.

If you guys could explain why you chose B it would be great.

Also, the OA/OE would be awesome !

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 18 Aug 2008, 19:54
One thing I missed out on is that the argument talks about increase in advertising sales. and the effect (or the lack of it ) that the reorg had on the advertising sales.

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Re: Following several years of declining advertising sales, the   [#permalink] 18 Aug 2008, 19:54

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