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Garnet and RenCo each provide health care for their employees. Garnet

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Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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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 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

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Originally posted by pb_india on 20 Jan 2005, 21:24.
Last edited by hazelnut on 19 Oct 2017, 07:15, edited 2 times in total.
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 21 Jan 2005, 06:57
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E. The only one which talks about the time frame. the average length of time an employee stays with RenCo is less than it is with Garnet
which is of importance because it is said that This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment
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Re: Garnet and RenCo each provide health care for their employees [#permalink]

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New post 05 Oct 2010, 04:30
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think about it this way, the stimulus clearly specifies that HC levels left untreated will lead to sever conditions(not necessarily stroke but other conditions that are way expensive) but still, say if this is hold true, A would still not give us a reason to justify Renco position because there is a possibility that Renco would have to pay expensive treatments. We need some other reason that would tell us that there is small possibility Renco will have to pay in the future..that would be E, employees are not going to be there for long
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 24 Sep 2011, 12:12
As far as I know average is not a good indicator for any stats. In this case, it's been argued that average length of time an employee stays with RenCo is less than with Garnet. But in reality, this average might be less just because of few employees. Other employees may very well have length of time greater than that with Garnet. Considering this factor, is E still correct as many have suggested on this forum? Can someone please explain?

Also, I chose C because I thought if RenCo has more number of employees then upfront expenditure may be much more than the Garnet and my assumption is that not many employees will necessarily require expensive treatment. Hence, RenCo may not have the same advantage as Garnet. I was not fully convinced with this option either, but it sounded better than E.
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 24 Sep 2011, 14:43
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sgupta0827 wrote:
As far as I know average is not a good indicator for any stats. In this case, it's been argued that average length of time an employee stays with RenCo is less than with Garnet. But in reality, this average might be less just because of few employees. Other employees may very well have length of time greater than that with Garnet. Considering this factor, is E still correct as many have suggested on this forum? Can someone please explain?

Also, I chose C because I thought if RenCo has more number of employees then upfront expenditure may be much more than the Garnet and my assumption is that not many employees will necessarily require expensive treatment. Hence, RenCo may not have the same advantage as Garnet. I was not fully convinced with this option either, but it sounded better than E.


I agree with you to an extent. The average is not a good indicator when the data are too widely dispersed. However, if we consider the standard deviation is not too much, the answer perhaps lies in the word "incentive". If we replace the word "incentive" with "capacity", "C" becomes a stronger candidate. Incentive is something like an ROI. If RenCo's employees quit every two years, why does it have to worry about the long term demerits of the ailment as to oppose to the Garnet employees, who work at least 25-30 years for the company. Yes, I am assuming a wild case where the average of the two cases will vary significantly. Too many assumptions are making it a weak argument.

But, E is the strongest among the weak.
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 24 Sep 2011, 16:27
fluke wrote:
sgupta0827 wrote:
As far as I know average is not a good indicator for any stats. In this case, it's been argued that average length of time an employee stays with RenCo is less than with Garnet. But in reality, this average might be less just because of few employees. Other employees may very well have length of time greater than that with Garnet. Considering this factor, is E still correct as many have suggested on this forum? Can someone please explain?

Also, I chose C because I thought if RenCo has more number of employees then upfront expenditure may be much more than the Garnet and my assumption is that not many employees will necessarily require expensive treatment. Hence, RenCo may not have the same advantage as Garnet. I was not fully convinced with this option either, but it sounded better than E.


I agree with you to an extent. The average is not a good indicator when the data are too widely dispersed. However, if we consider the standard deviation is not too much, the answer perhaps lies in the word "incentive". If we replace the word "incentive" with "capacity", "C" becomes a stronger candidate. Incentive is something like an ROI. If RenCo's employees quit every two years, why does it have to worry about the long term demerits of the ailment as to oppose to the Garnet employees, who work at least 25-30 years for the company. Yes, I am assuming a wild case where the average of the two cases will vary significantly. Too many assumptions are making it a weak argument.

But, E is the strongest among the weak.


Thanks fluke for the explanation. Perhaps I am still lacking the depth to understand these questions. Even after reading your explanation I don't understand the difference between capacity and incentive, and why would capacity make "C" a stronger candidate? I am always wary about choosing an option with "average". Do you know any strategy when I am in dilemma about these options?
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 24 Sep 2011, 18:01
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sgupta0827 wrote:
Thanks fluke for the explanation. Perhaps I am still lacking the depth to understand these questions. Even after reading your explanation I don't understand the difference between capacity and incentive, and why would capacity make "C" a stronger candidate? I am always wary about choosing an option with "average". Do you know any strategy when I am in dilemma about these options?


Like I said, your doubt about the average is justified.

"However, RenCo dose not have the same financial incentive to adopt such a policy, because RenCo has significantly more employees than Garnet has."
Now, how do we know that there are no financial incentives to adopt a policy just on the basis of company's employee strength? We actually don't unless we are given a good reason. "E" gives us that reason.

Let's think it like this:
I) I'm not going to get much return even if I medically insure my employees because they are just too many in numbers. (Financial incentive-the return of investment)

II) I just can't afford to medically insure my employees because they are too many in numbers. (Financial incapacity)

III) I'm not going to get much return even if I medically insure my employees because they will leave my company after a short time anyway.
E is trying to say just that in a convoluted manner.

IMO, "III" is a better reason than "I" for not getting the employees insured.
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Garnet and RenCo each provide health care for their [#permalink]

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New post 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.
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Re: GWD # 12 V8 [#permalink]

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New post 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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New post 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: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 26 Dec 2012, 05:51
Still the question, whats wrong with C? Explanations will be appreciated.
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 07 Jan 2013, 07:07
pb_india 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


We are looking for a good reason why it's RenCo has no reason to spend like Garnet on treating high-cholesterol of its employees.
It's given if left untreated for many years, it becomes more costly.

While I was reading this, I thought to myself aren't they planning to resign earlier than that.

It is not C because the reason for the incentive is more about avoiding future extra costs. Time is more of the issue. We need to assume a little more about the significance of number of employees if we are to take this as correct response.

D and E are contenders to me. But, E is best because it shows that RenCo doesn't have to worry because employees aren't going to be employed with them that long.

Answer: E
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 21 Jan 2013, 20:13
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Marcab wrote:
Still the question, whats wrong with C? Explanations will be appreciated.


Hi,

I think I should offer my two cents to the reason why C cannot be the answer. This is a doubt expressed by a number of people.

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 :)

Let me know if further clarity is needed.

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

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

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New post 30 Jan 2014, 09:35
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 does not entirely eliminate the possibility of stroke later in life....that may apply to both firms...irrelevant
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol...so what?
C. RenCo has significantly more employees than Garnet has....employee strength is irrelevant
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employeeseven if it is equal...the financial benefit should have accrued...
E. the average length of time an employee stays with RenCo is less than it is with Garnetcorrect..note the premise-[color=#0000ff]""This policy saves Garnet money, since high cholesterol left untreated for many years leads to conditions that require very expensive treatment""...if average time spent is less less benefit accrues from it as cases of " high cholesterol left untreated for many years leading to conditions requiring very expensive treatment " .. may not be there.....[/color]
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 30 Sep 2014, 21:31
pb_india 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



Such type of questions are very difficult to be categorized into St,We or Inference type...But the trick is to look at Introductory wordings before the line portion...
Attachment:
Untitled.png
Untitled.png [ 8.55 KiB | Viewed 1460 times ]

Clearly this becomes a strengthen question because we need to reason out as to what is the incentive for Renco for not offerings incentives to its employees...

For a Strengthen question, The correct answer
*Should present new information to argument
Also, For Strengthen question you need to look for Logical Gaps or look for Common Logical fallacies(Correlation--->Causation, Generalization on limited data presented or interpreting data)

Now, if we go back to the argument, you will see that Garnet does pay for testing and for treatment of high cholesterol because an untreated cholesterol for many years lead to expansive treatment later on------> This points that Employees at Granet stay at company for many years..or very loyal ( :clap: ...can't imagine same thing in india unless you are with Tata or Govt employee)...This is a potential gap ie what if employees at Renco don't stay for that long...

A. early treatment of high cholesterol dose not entirely eliminate the possibility of a stroke later in life----> This will be the case for employees at both the companies
B. the mass media regularly feature stories encouraging people to maintain diets that are low in cholesterol----> Does not help the argument unless we know a lot more about Renco employees
C. RenCo has significantly more employees than Garnet has-----> Has significantly more employees means more cost even for testing and treatment...hey but what if they have higher attrition surely there costs will be significantly more because for new employees (frequent) they will have to shell out more...we know nothing about stay of employees... for this argument it is crucial.. Otherwise the argument will swing based on our answer to portion highlighted in red
D. RenCo's employees are unlikely to have higher cholesterol levels than Garnet's employees---->fare enough but we are concerned with high cholesterol and not with degree of how high
E. the average length of time an employee stays with RenCo is less than it is with Garnet----> Where were you...I was looking for you in the option...
Ans is E

PS: I chose C initially but the Gmat prep question...had brilliantly masked the information which was crucial to the arguement..
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Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 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

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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New post 27 Jan 2015, 04:05
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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..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 for their employees. Garnet [#permalink]

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New post 28 Jul 2016, 07:43
Can someone explain why D is incorrect here ??
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Re: Garnet and RenCo each provide health care for their employees. Garnet [#permalink]

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New post 31 Jan 2018, 23:37
E. Financial incentive here implies financial motivation. Now it's worth paying for both services if employees stick on for good number of years in the company. Whereas if employees who join do not stick around for too long, there is no point in these cholestrol tests, they might in fact only raise the expenses for the company further possibly through new recruitments, benefits etc. E stresses on this explanation and resolves the paradox.

C. While significantly higher number of employees may tell us that the company would likely have more expenditure, it is irrelevant. What if Renco's employees are under long term contracts ? Then in that case there is a significant motivation to pay for both these services. As there is a lot of uncertainty here, we can safely eliminate this choice.
Re: Garnet and RenCo each provide health care for their employees. Garnet   [#permalink] 31 Jan 2018, 23:37

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