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# Garnet and RenCo each provide health care for their

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Senior Manager
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Garnet and RenCo each provide health care for their [#permalink]

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27 Apr 2012, 19:19
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Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo dose not have the same financial incentive to adopt such a policy, because ______.

A. early treatment of high cholesterol dose not entirely eliminate the possibility of a stroke later in life
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol
C. RenCo has significantly more employees than Garnet has
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees
E. the average length of time an employee stays with RenCo is less than it is with Garnet

I understand why OA is correct, but still confused what is wrong with D.
[Reveal] Spoiler: OA

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Re: Garnet and RenCo each provide health care for their [#permalink]

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30 Jan 2013, 03:38
1
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HI
Assumption: The companies must provide or take care of employee's medical commitment
Having said that ....when we scan the passage carefully......
"This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment."

Garnet provides financial aid since it helps them:
1. saves money because it cannot afford the cost of treatment if treatment is delayed...i.e It is the garnet which will have to pay the money for the same employees treatment cost now and in future.....It means that employee stays with garnet.

Coming to the point of Renco
If it leaves the disease untreated, it will save the company extra money. Why?
Refer to the excerpt quoted above. Only if it is left untreated for many years it will cost much...Employee is not of a concern for long years to the Renco.......i.e. Its employee or employees keep changing.

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MBA Section Director
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Garnet and RenCo each provide health care [#permalink]

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25 Jan 2015, 22:24
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Which of the following most logically completes the passage?
Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo does not have the same financial incentive to adopt such a policy, because __________.

A. early treatment of high cholesterol does not entirely eliminate the possibility of a stroke later in life
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol
C. RenCo has significantly more employees than Garnet has
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees
E. the average length of time an employee stays with RenCo is less than it is with Garnet

[Reveal] Spoiler:
E. Let's start with a basic question - what incentive does Garnet has to allow cholesterol testing?

The reason is clearly given in the passage that it allows it to save money that would have been spent on treatment of cholesterol, once its employees gets affected (after some years).

Now, what makes us think that a similar policy won't help Renco save money? Are employees of Renco any different from Garnet?

Some people have opined that it would lead to a lot of upfront cost for Renco because it has significantly more employees than Garnet. But with the same reason, one can say that allowing cholesterol testing should save Renco significantly more since it has larger number of employees.

So, if the proportion of employees that are going to be treated for cholesterol are same for Garnet and Renco, both the companies have the financial incentive to support cholesterol testing.

So, Renco has the same financial incentive as Garnet if there is no difference in the employees of the two companies.

Option E specifically talks about the difference in employees of Renco and Garnet. Renco employees stay in the company for shorter period of time than Garnet employees.

Therefore, option E is correct.

Hope this helps

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Re: Garnet and RenCo each provide health care [#permalink]

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27 Jan 2015, 04:05
1
KUDOS
Which of the following most logically completes the passage?
Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo does not have the same financial incentive to adopt such a policy, because __________.

A. early treatment of high cholesterol does not entirely eliminate the possibility of a stroke later in life..stroke is not the only thing requiring treatment... it could be any reason
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterolthats common to both groups and the society at large
C. RenCo has significantly more employees than Garnet hasmore numbers is not imp
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employeesbut they could have equal levels...
E. the average length of time an employee stays with RenCo is less than it is with Garnetsince high cholesterol left untreated for many years leads to conditions that require very expensive treatment... here the years are less so its ok not to follow same ... CORRECT

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Re: Garnet and RenCo each provide health care [#permalink]

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27 Jan 2015, 21:19
1
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Hi Souvik,

please post OA. I picked th option E.

souvik101990 wrote:
Which of the following most logically completes the passage?
Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo does not have the same financial incentive to adopt such a policy, because __________.

A. early treatment of high cholesterol does not entirely eliminate the possibility of a stroke later in life
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol
C. RenCo has significantly more employees than Garnet has
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees
E. the average length of time an employee stays with RenCo is less than it is with Garnet

[Reveal] Spoiler:
OA - 24 hours

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Re: GWD # 12 V8 [#permalink]

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27 Apr 2012, 19:33
eybrj2 wrote:
Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo dose not have the same financial incentive to adopt such a policy, because ______.

A. early treatment of high cholesterol dose not entirely eliminate the possibility of a stroke later in life
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol
C. RenCo has significantly more employees than Garnet has
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees
E. the average length of time an employee stays with RenCo is less than it is with Garnet

I understand why OA is correct, but still confused what is wrong with D.

Answer choice D does not originate back to the premise.

And just because they offer these treatments to their employees can not mean that they are expected to have lower cholesterol than RenCo. A conclusion can not be an assumption that is drawn to reach a conclusion, a conclusion has to be brought out by the premise.
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Re: GWD # 12 V8 [#permalink]

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28 Apr 2012, 03:49
eybrj2 wrote:
Garnet and RenCo each provide health care for their employees. Garnet pays for both testing of its employees' cholesterol levels and treatment of high cholesterol. This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment. However, RenCo dose not have the same financial incentive to adopt such a policy, because ______.

A. early treatment of high cholesterol dose not entirely eliminate the possibility of a stroke later in life
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol
C. RenCo has significantly more employees than Garnet has
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees
E. the average length of time an employee stays with RenCo is less than it is with Garnet

I understand why OA is correct, but still confused what is wrong with D.

Ok, lets discuss D only.

If the odds of employees having high cholesterol are low, Renco would want to get them treated because STAKES ARE HIGH (as evident from "very expensive treatment")

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Re: GWD # 12 V8 [#permalink]

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28 Apr 2012, 09:41
My choice is E. And for D i think the level of cholesterol is not a strong incentive since as indicated in the premise time is a more important factor.

Btw, what is GWD # 12 V8 if you don't mind?

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Re: GWD # 12 V8 [#permalink]

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29 Apr 2012, 16:39
Thank you all for the explanations.

To gmatfighter12,

I am not sure what GWD means. It is a name of files that I received from my friend.

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Re: Garnet and RenCo each provide health care for their [#permalink]

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03 Nov 2012, 06:12
Answer (E): The premise states the policy adopted by Garnet saves money because if cholestrol is not treated at an early stage it can cause severe problems in the LONG RUN. This is the key here. The argument assumes that the workers at Garnet stay with them for a long time (perhaps, also at the time when their cholestrol levels might be high). Hence if these people are not treated on time it might cost the company alot of money.

The argument hinges on the assumption that the workers in Garnet are working on Long term basis.
Answer choice that shows the opposite of this for the employees of Renco, then their decision not to follow this policy would be justified.

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Re: Garnet and RenCo each provide health care for their [#permalink]

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14 Jan 2013, 22:55
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees
E. the average length of time an employee stays with RenCo is less than it is with Garnet

Option D as stated by fellow members that if RecCo has less cases then definitely it would like to solve them.
Option E Justifies the financial incentive also.

Rgds,
Saurabh
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Re: Garnet and RenCo each provide health care for their [#permalink]

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29 Jan 2013, 14:20
pls let me know why OA is not option 'C'.
since renco lacks does n't have the funds....

also E does nt explicitly states the time spent by employees in both renco and garnet.

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Re: Garnet and RenCo each provide health care for their [#permalink]

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23 Jul 2015, 20:03
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Re: Garnet and RenCo each provide health care for their [#permalink]

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14 Aug 2017, 23:08
Merged topics. Please, search before posting questions!
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Re: Garnet and RenCo each provide health care for their   [#permalink] 14 Aug 2017, 23:08
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