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Following several years of declining advertising sales, the Greenvile

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Following several years of declining advertising sales, the Greenvile  [#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?


OG2017 Diagnostic V70, P34

Same passage with different question from GmatPrep: LINK


Official Guide 12 Question

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Question: 22
Page: 34
Difficulty: 600

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Video Explanations:

Originally posted by kimmyg on 05 Oct 2005, 07:51.
Last edited by Bunuel on 05 Jan 2019, 03:30, edited 3 times in total.
Renamed the topic and edited the question.
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 22 Feb 2014, 22:12
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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 Greenvile  [#permalink]

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New post 17 Jan 2006, 21:06
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The OE:

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.

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

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New post 19 Aug 2008, 14:19
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Premise1: GT ad sales declining for several years.
Premise2: GT reorganized sales team.
Premise3: Before reorganization, Sales team was georaphy based.
Premise4: After reorganization, sales team focus either on one type of industry or on one type of retailing.
Premise5: GT ad sales increased after organization.

Rephrased question: Did sales increase due to reorgnization or some other reason?

(A) What proportion of the total revenue of Greenville Times is generated by advertising sales?
Does not explain sales increased due to reorganization or for some other reason.

(B) Has the circulation of the Greenville Times increased substantially in the last two years?
Question is concerned about ad sales revenue and not about revenue from circulation, so this is irrelevant.

(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?
Does not explain sales increased due to reorganization or for some other reason.

(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?
It does explain the fact. If answer to D is yes, then ad sales increased due to standing order and not because of sales team reorganization, however, if answer to D is no, then sales team reorganization did work.

(E) Among the advertisers in the Greenville Times, are there more types of retail business or more types of industrial business?
Does not explain sales increased due to reorganization or for some other reason.
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 14 Aug 2016, 05:56
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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 Greenvile  [#permalink]

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New post 16 Apr 2017, 23:31
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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?


OG2017 Diagnostic V70, P34

Advertising Sales
 
Step 1: Identify the Question

The questions ask which of the answers would be most helpful to find out, so this is an Evaluate the Argument question.

Step 2: Deconstruct the Argument

Reorg ad department
Old – geo
New – industry
© Sales up - due to reorg?

The conclusion that you are supposed to evaluate is stated in the question stem: whether the improvement in advertising sales can properly be attributed to the reorganization.

Step 3: Pause and State the Goal

On Evaluate questions, the correct answer is information that is important in determining whether the conclusion is believable. In this case, what would make it more or less likely that the reorganization actually caused the change in ad sales? Are there any other factors that might have generated this result?

Step 4: Work from Wrong to Right

(A) The amount of revenue from advertising sales relative to other revenue sources does not impact whether the reorganization is the cause of the increase in advertising sales.
(B) CORRECT. The circulation of the newspaper is important to advertising revenues; advertisers will pay more if circulation is higher because the ads reach more people. Increased circulation would WEAKEN the conclusion because it provides an alternative explanation for increased ad revenues. If circulation has NOT increased, the conclusion would be SUPPORTED because it is more likely the reorganization caused the increase.
(C) The exact types of businesses advertising and the proportions of advertising revenues that these businesses represent do not directly speak to whether the reorganization caused an increase in revenues.
(D) The conclusion of the argument regards whether increased revenues can be attributed to the reorganization; the exact structure of contracts for particular clients is not directly related. If anything, contracts for a fixed amount of advertising do not fall into the increased sales category.
(E) The types of businesses, specifically the proportion of retail versus industrial businesses, do not directly influence whether the reorganization was the cause of increased revenues.
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 09 Dec 2017, 07:53
Please address the use of outside info required for OA provided for this question.
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 15 Dec 2017, 19:25
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GMATAspirer09 wrote:
Please address the use of outside info required for OA provided for this question.

Can you please elaborate on your question? What outside info is required?

You might also find this explanation helpful (same passage, different question, choice (B) is the same).
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 16 Mar 2018, 06:19
Can someone please provide a line of reasoning for eliminating choice D ??
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 20 Mar 2018, 19:43
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RanjanSury wrote:
Can someone please provide a line of reasoning for eliminating choice D ??

Quote:
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?

We are told that revenue from advertising sales has increased. We need to explain that increase. Was it caused by the reorganization or by something else?

Choice (D) does not provide an alternative explanation for the increased revenues. If anything, choice (D) explains why revenues would NOT increase (since there is a FIXED amount of advertising per month).

Since it neither provides an alternative explanation nor suggests whether "the improvement in advertising sales can properly be attributed to the reorganization", choice (D) is irrelevant.
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 21 Mar 2018, 12:39
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? --Proportion? out of scope

(B) Has the circulation of the Greenvile Times increased substantially in the last two years? --Correct. If the circulation has increased then reorganization didn't work

(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? --Type?

(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? --This would weaken the argument

(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business? --Out of scope
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 15 Aug 2018, 20:23
Hey nightblade354

Can you please explain why B is OA and why option D is worng ?
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 16 Aug 2018, 04:56
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teaserbae,

Please see Gmatninja's post as it is quite helpful. In short, (D) doesn't do anything for us. If we know that some do have set orders, that's great. But it doesn't explain how revenue increased (this would keep it flat). The increase, then, could have been from advertising, but it could have been from something else. All we know is that something is causing an increase, and it isn't those currently on a contract. So this leaves way too much room for assumption and ambiguity.

Does this help?
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 22 Mar 2019, 09:00
Hi,

I am not convinced why B is the correct answer.

The reorganization has caused the sales representative to gain more industry related knowledge by interacting with the industry specific clients. I believe this will enable them to make better advertisements for those industries they have been interacting with.

Circulation is anyway going to be necessary to ensure that readers will take a look at those 'better advertisements' and will this increased readership increase advertising sales revenue?

I think circulation and reorganization are both necessary. Why does it seem that they are trying to make it separate in the way the question is asked?
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 22 Mar 2019, 09:01
1. Old strategy - by geography
2. New strategy(after reorganisation) - by industry

And we have to prove that as a result of the reorganisation, the sales of revenue increased.

And that's why I had chosen option C as my answer as it talked about industry. If C was valid, it would mean that the focus on industry helped as it accounted for the large proportion of newspaper sales? isn't this right? Could someone please help to explain why A is correct?
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 09 Apr 2019, 08:49
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Leonaann wrote:
1. Old strategy - by geography
2. New strategy(after reorganisation) - by industry

And we have to prove that as a result of the reorganisation, the sales of revenue increased.

And that's why I had chosen option C as my answer as it talked about industry. If C was valid, it would mean that the focus on industry helped as it accounted for the large proportion of newspaper sales? isn't this right? Could someone please help to explain why A is correct?

Quick note: the OA for this question is (B), so I'll explain why (B) is correct.

Take another look at the exact wording of the question: "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?"

This is different than saying we "have to prove that as a result of the reorganisation, the sales of revenue increased." We are not trying to prove anything, but rather assess whether the the improvement in sales can be attributed to the reorganization. To do this, we are looking for a question that, if answered, would shed more light on the cause of the increase in advertising revenue.

With this in mind, take another look at (C):
Quote:
(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?

Would answering this question help us to assess whether the reorganization accounts for the increase in advertising revenue? Does it make a difference whether the "largest proportion of the newspaper's advertising sales" comes from restaurants, or clothing shops, or car dealerships, or any other type of industry?

Simply put: no, the answer to this question does not shed light on why the advertising revenues have increased. Any one of those options could account for the largest proportion of sales, and it would not affect our assessment of how the reorganization impacted the advertising revenue. (C) is out.

Now, look again at (B):
Quote:
(B) Has the circulation of the Greenvile Times increased substantially in the last two years?

Again, we need to ask: does answering this question help us to assess whether the reorganization accounts for the increase in advertising revenue?

If the circulation of the newspaper has increased substantially in the past two years, then maybe more retailers have elected to advertise their businesses in the paper. Or, maybe the newspaper can charge more for advertisements that are now reaching a greater audience. This provides an alternative explanation to the increase in advertising revenue -- maybe the increase had nothing at all to do with the reorganization of the sales representatives. This would weaken the argument that the improvement in advertising sales can properly be attributed to the reorganization.

If, on the other hand, the circulation has not increased substantially in the past two years, then this alternative explanation would not be introduced. The argument that the improvement in advertising sales can properly be attributed to the reorganization would be stronger if circulation has not increased substantially.

Finding out the answer to the question posed in (B) would help us assess whether the reorganization accounts for the increase in advertising revenue, so (B) is the correct answer.

I hope that helps!
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Re: Following several years of declining advertising sales, the Greenvile  [#permalink]

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New post 09 Apr 2019, 10:23
B could be right but number of years is not talked about anywhere in the argument.We don't know when the reorganization happened...we cannot say for sure that it happened in the last 2 years...
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Re: Following several years of declining advertising sales, the Greenvile   [#permalink] 09 Apr 2019, 10:23
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