GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 14 Oct 2019, 13:38

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# In anticipation of the coming year, Tecumseh Autos, a national auto ma

Author Message
TAGS:

### Hide Tags

Director
Joined: 17 Dec 2012
Posts: 626
Location: India
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

23 Aug 2017, 19:48
There needs to be a good understanding of grammar in answering this question. Also , I do not think that choice C is an assumption. It is a fact used in the prediction.
_________________
Srinivasan Vaidyaraman
Sravna Test Prep
http://www.sravnatestprep.com

Holistic and Systematic Approach
Senior Manager
Joined: 07 Sep 2014
Posts: 341
Concentration: Finance, Marketing
In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

14 Sep 2017, 22:03
=> profit per vehicle is same for all categories.
=> main criteria : sales
=> most profitable (CC, MV, SUV) Coming year => which means sales LY (CC, MV, SUV)

assumption:-
1. Coming year ~ last year
2.

Tecumseh’s marketing analysts’ prediction relies on which one of the following assumptions?

(A) Across all manufacturers, the most popular cars on the road in America are compact cars, minivans, and SUVs.

(C) Last year, no other category of Tecumseh’s vehicles generated more profits than SUVs and less than minivans.

(E) The number of models of compacts cars that Tecumseh produces is greater than the number of models of either minivans or SUVs.

why can't it be E? We know that Profitability here depends upon sales (as we are neutralizing profit per vehicle).
if The number of models of compacts cars that Tecumseh produces is less than the number of models of either minivans or SUV, then sales of Compact cars can't be higher. because if you don't have sufficient numbers of cars to sell, then how would you have sales???

mikemcgarry sayantanc2k
Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 4473
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

15 Sep 2017, 16:15
=> profit per vehicle is same for all categories.
=> main criteria : sales
=> most profitable (CC, MV, SUV) Coming year => which means sales LY (CC, MV, SUV)

assumption:-
1. Coming year ~ last year
2.

Tecumseh’s marketing analysts’ prediction relies on which one of the following assumptions?

(A) Across all manufacturers, the most popular cars on the road in America are compact cars, minivans, and SUVs.

(C) Last year, no other category of Tecumseh’s vehicles generated more profits than SUVs and less than minivans.

(E) The number of models of compacts cars that Tecumseh produces is greater than the number of models of either minivans or SUVs.

why can't it be E? We know that Profitability here depends upon sales (as we are neutralizing profit per vehicle).
if The number of models of compacts cars that Tecumseh produces is less than the number of models of either minivans or SUV, then sales of Compact cars can't be higher. because if you don't have sufficient numbers of cars to sell, then how would you have sales???

I'm happy to respond.

My friend, I will point out a slight misreading on your part. You thought the argument said: "profit per vehicle is same for all categories."

What the argument actually said was: "Tecumseh sets prices so that the profit per vehicle is, on average, about the same." There's some wiggle room there. What does this mean?

Let's say that profit per car for each compact car is $1005. Let's say that profit per vehicle for each minivan is$995--about the same, within about 1% of each other. Suppose they sell 1000 compact cars, for a profit of $1,005,000. Suppose they sell 1001 minivans, for a profit of$995,995. They sold more minivans but the most profit was associated with compact cars. Admittedly, this is a slightly contrived example, but it is possible for the number of minivans sold to be equal or a few greater than the number of compact cars sold, and still have compact cars have the most profit. As the total number of cars becomes large, even small wiggle-rooms differences become large, and of course, we have no information about the scale of the operation here. Does Tecumseh Autos sell $$10^3$$ cars, $$10^6$$ cars, or $$10^9$$ cars each year? We have no way of knowing, so if the result changes with scale, it's not reliable.

Does all this make sense?
Mike
_________________
Mike McGarry
Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)
Intern
Joined: 21 Jun 2017
Posts: 10
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

16 Sep 2017, 02:41
mikemcgarry wrote:
modarresansharif wrote:
Hi
i believe the question is wrong
option c says suv was the most profitable category and minivan the least profitable one which is based on last year sale.
the prediction is best on last year sale.
but the stimulus claims that the compact car is gonna make more profit than minivan and the third category will be suv.
thus the fourth and fifth categories will be other catergories, which will be less profitable

Dear modarresansharif,

I'm happy to respond.

My friend, I don't believe you were reading (C) carefully enough. Think about it:
(C) Last year, no other [single individual] category of Tecumseh’s vehicles generated more profits than SUVs AND less than minivans.
It's very important to recognize the word "category" is singular, and it is very important to recognize the significance of an "and" rather than an "or." Of course it's true, as you say, that every other category has profits that are either greater than SUVs or less than minivans. That's absolutely true, but that's not what (C) is saying.

If we read (C) carefully, it is saying that no single individual category has a profit that is simultaneously both greater than SUVs and less than minivans. In other words, there is no category that ranks between those two in terms of profit. This is absolutely true, because SUV are #2 and minivans are #3.

Now, my friend, I want to consider how you addressed this question. Your opening comment was "I believe the question is wrong." This could be construed as disrespectful. Think about the following scenario. Suppose, after you get your MBA, you are hired at some job. Suppose you observe something associated with the company that looks like an error to you. If you go into your boss's office and begin by saying "I believe this is wrong," and then it turns out, as with this question, you misinterpreted something, think about the opinion this boss will have of you. Nobody else likes to be told "You are wrong," and if someone say this and then it turns out to have no basis, it is as if that person insulted someone for no reason. If someone does this, other people's respect or that person will tend to drop off quickly.

Hi Mike,

Going through your comments on why C should be the answer. Isn't C an inference and not an assumption? What C says is something that can already be inferred from the information provided above.
Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 4473
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

16 Sep 2017, 12:03
nayyarsidharth wrote:
Hi Mike,

Going through your comments on why C should be the answer. Isn't C an inference and not an assumption? What C says is something that can already be inferred from the information provided above.

Dear nayyarsidharth,

I'm happy to respond.

As assumption is such a central part of argument that it can take on several roles. It certainly can be a strengthener, and it's negation can be a weakener.

Now the question of "must be true" or "inference" is subtle.

The last sentence of the argument, the conclusion, is:
Tecumseh’s marketing analysts’ prediction of the three most profitable categories of vehicles in the coming year will be compact cars, minivans, and SUVs respectively.
Notice that this is a prediction. Is this true? Do we know that this is true? In a CR argument, we have to assume that the evidence is true, but not necessarily the conclusions, especially if the conclusions are predictions.

When the CR question is an assumption question, a strengthen question, or a weaken question, the implicit structure of the question assumes that the conclusion is not guaranteed, and our job is to find what would guarantee (or devastate) this uncertain conclusion. Because we don't know whether that prediction at the end is true, and want to find an assumption that would strengthen it in some way, (C) works, although admittedly, it has an unusual structure for an assumption, insofar as it shores up only one narrow part of the conclusion.

In a "must be true" or "inference" question, the caveat is stated "assuming that the above states are true . . . " If this were the case, then we would know that the prediction in the final line is true--we could assume that as true. Then (C) also would also work, but the direction of logic would be different in those kinds of questions: rather than use (C) to support an uncertain conclusion, we would be using a certain conclusion to deduce (C).

It's extremely important to appreciate how the nature of the prompt question shapes the way we are to understand the prompt argument and its conclusion. A lot of the confusion on this thread about "is it an assumption or an inference/prediction/must be true?" comes from not appreciating the subtle shifts in logic caused by different prompt questions.

Does all this make sense?
Mike
_________________
Mike McGarry
Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)
VP
Joined: 12 Dec 2016
Posts: 1493
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

22 Sep 2017, 16:41
this question is easy b/c of 2 things
first, profits => C
secondly, 3 top = no others => C
Intern
Joined: 03 Jan 2017
Posts: 14
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

25 Sep 2017, 00:20
(C) Last year, no other category of Tecumseh???s vehicles generated more profits than SUVs and less than minivans.

If I negate this,

and let say ONE SEGMENT (COMPACT CARS segment) generated more profits than SUVs and less than minivans that is:
profits from sale of MINI VANS > profits from sale of COMPACT CARS > profits from sale of SUV

conclusion is still valid. Please help me to resolve this confusion. It took me a lot of time but still unable to solve.
Intern
Joined: 02 Nov 2017
Posts: 4
Location: India
Schools: ISB '19 (S)
GMAT 1: 700 Q50 V34
GPA: 3
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

04 May 2018, 06:51
mikemcgarry wrote:
modarresansharif wrote:
Hi
i believe the question is wrong
option c says suv was the most profitable category and minivan the least profitable one which is based on last year sale.
the prediction is best on last year sale.
but the stimulus claims that the compact car is gonna make more profit than minivan and the third category will be suv.
thus the fourth and fifth categories will be other catergories, which will be less profitable

Dear modarresansharif,

I'm happy to respond.

My friend, I don't believe you were reading (C) carefully enough. Think about it:
(C) Last year, no other [single individual] category of Tecumseh’s vehicles generated more profits than SUVs AND less than minivans.
It's very important to recognize the word "category" is singular, and it is very important to recognize the significance of an "and" rather than an "or." Of course it's true, as you say, that every other category has profits that are either greater than SUVs or less than minivans. That's absolutely true, but that's not what (C) is saying.

If we read (C) carefully, it is saying that no single individual category has a profit that is simultaneously both greater than SUVs and less than minivans. In other words, there is no category that ranks between those two in terms of profit. This is absolutely true, because SUV are #2 and minivans are #3.

Now, my friend, I want to consider how you addressed this question. Your opening comment was "I believe the question is wrong." This could be construed as disrespectful. Think about the following scenario. Suppose, after you get your MBA, you are hired at some job. Suppose you observe something associated with the company that looks like an error to you. If you go into your boss's office and begin by saying "I believe this is wrong," and then it turns out, as with this question, you misinterpreted something, think about the opinion this boss will have of you. Nobody else likes to be told "You are wrong," and if someone say this and then it turns out to have no basis, it is as if that person insulted someone for no reason. If someone does this, other people's respect or that person will tend to drop off quickly.

You see, traditional religious and ethic systems say that humility is a virtue precisely because humility is an extraordinarily powerful strength that can help you in an astonishing number of ways in life. The humble person who says, "Perhaps it is due to my mistake, but this doesn't make sense to me" is in a win-win scenario. If the matter in question is really correct, this humble attitude makes someone else more apt to explain it and clarify the matter. If the matter is really wrong, the humble person gets all the credit for pointing out the mistake as well as the personal respect for doing so humbly. There are few personality traits that will open more doors or impress more people than will genuine humility.

Furthermore, just in terms of pure pedagogy, your mind is more primed to learn when you are in genuine questioning mode. To the extent that you adopt the "this is wrong" mindset, you shut down curiosity and openness to new perspectives. Curiosity and openness to learning are also powerful skills that should not be underestimated: they also have the potential to assist you powerful in a number of venues in your life, including in GMAT preparation. They are definitely the best mindsets to cultivate if you want to learn the most.

My friend, does all this make sense?
Mike

No other category had profits greater than SUV and less than minivans simultaneously. This could have multiple implications. Suv and minivans could be last and second last or first and second or they could even have equal profits last year, in each case the above scenario is justified. I don't find the reasoning valid. Please explain again.
Intern
Joined: 02 Oct 2016
Posts: 8
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

09 May 2018, 01:10
Hello Mike

Thank you for such a nice explanation.

In this question, I chose B, I realise my mistake. However, I understood the argument specially the last statement as - "Compact Cars, minivans, SUV's all three are the most profitable"
whereas when I read the discussion down below, I realised that it is actually saying - "Compact Cars are the most profitable, followed by Minivans and SUV's on number 3 spot".
Please can you point out the indicator in the argument which brings forth the meaning above.
Thanks and Regards
Manager
Joined: 12 Dec 2011
Posts: 59
Location: United States (NY)
GMAT 1: 720 Q49 V38
GPA: 3.17
WE: Other (Accounting)
In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

16 May 2018, 20:56
I think many people here got confused.

Easy mode:

Premise - Analysts are basing the analysis by picking up the categories that generated the most profits in last year.
Conclusion - Analysts pick up Compact Cars, Mini Van, and SUV.

This is actually a very easy question. People pick the wrong ones simply because they get confused by the wrong answers.

A - Popularity of the car doesn't really matter. The focus is the profit. Kanye West is popular. But he can't profit as much as a 2nd tier rich business man in China.

B - This is tricky one. And the logic behind picking this one can sometimes get to the right answer in other questions. However, even though the model could change, there is no logic connection between a model change and a profit, provided by the question.

C - Obviously the correct one if you stay calm and think it through. The question doesn't tell you explicitly that the analysts pick up the 3 categories that had highest sales in last year. This is the premise. To make the premise tie to the conclusion, the assumption will be that the 3 autos that analysts pick belong to the categories that had highest sales in last year. If there is another category that earns between Mini Van and SUV, that category will replace SUV and become the category with the third highest sale.

D - When to refine the prediction is irrelevant. The focus is the profit.

E - The unit production here is irrelevant. You can produce cars to fill in the entire universe. But if you can't sell one, you have no profit. The focus here is the profit.

Feel free to discuss.
Manager
Joined: 25 Jan 2018
Posts: 89
Location: United States (IL)
Concentration: Strategy, Operations
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

17 May 2018, 00:17
Hello Mike....One question here..

Why are we assuming that the order of the profitability is in descending order...compact cars, minivans, and SUVs. It can be in ascending order as well right.
I understand.. choice c is winner in that case as well. As we cannot have a vehicle category with profitability more than max and less than min of the three in order.Just want to understand if i am missing something here.

Kindly explain.
Board of Directors
Status: Stepping into my 10 years long dream
Joined: 18 Jul 2015
Posts: 3584
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

17 May 2018, 00:52
Hello Mike....One question here..

Why are we assuming that the order of the profitability is in descending order...compact cars, minivans, and SUVs. It can be in ascending order as well right.
I understand.. choice c is winner in that case as well. As we cannot have a vehicle category with profitability more than max and less than min of the three in order.Just want to understand if i am missing something here.

Kindly explain.

Author said analysts predicted that the three most profitable categories will be in the order given : compact cars, minivans, and SUVs.

Whenever we say "Most" in that order, we take the first the maximum and the last the minimum. It is similar to the highest marks scored by students are in the order : 100,90,80, etc. You cannot say the highest marks scored by students are in the order: 60,70,80,100.

Does that make sense?
_________________
My GMAT Story: From V21 to V40
My MBA Journey: My 10 years long MBA Dream
My Secret Hacks: Best way to use GMATClub | Importance of an Error Log!
Verbal Resources: All SC Resources at one place | All CR Resources at one place

GMAT Club Inbuilt Error Log Functionality - View More.
New Visa Forum - Ask all your Visa Related Questions - here.
New! Best Reply Functionality on GMAT Club!
Find a bug in the new email templates and get rewarded with 2 weeks of GMATClub Tests for free
Check our new About Us Page here.
Manager
Joined: 25 Jan 2018
Posts: 89
Location: United States (IL)
Concentration: Strategy, Operations
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

17 May 2018, 03:33
Yes - Thanks abhimahna - it makes sense !!!
Intern
Joined: 29 Aug 2017
Posts: 27
Location: India
GMAT 1: 640 Q49 V27
GPA: 4
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

20 Jun 2018, 11:32
1
mh88 wrote:
Dear Mr McGarry

May I kindly clarify a point: In option C, does the word "profits" necessarily imply in the second part of the sentence i.e. less than minivans?

I did not pick this answer choice as it seem to indicate anything can be 'less than minivans'. Maybe I am just reading too much into this.

I will be grateful for your guidance.

Best wishes,
Hamant

No it does not imply anything less than minivans.
It simply means that there is no other category between SUVs and minivans.
SO we can say that somehow this statement is supporting the statement.
Intern
Joined: 18 Jul 2015
Posts: 4
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

23 Jun 2018, 01:46
Hello Mike,
I understood the explanation . But everything will make sense when you will consider the order of sales to be 1) Compact Cars 2) Minivans 3) SUV's.
This was my only concern and made me select wrong option. How can we conclude this.
The question stem contains the conclusion about three most Selling categories . But how can we conclude the three most selling cars names to be the chronological order of sales quantity.
Regards,
Pratik
Intern
Joined: 11 Aug 2018
Posts: 2
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

07 Sep 2018, 10:23
In my opinion, option C is something you can infer from the passage, rather than an assumption.
Option E is better for me because we have to assume that Tecumseh will produce enough compacts cars to sell, otherwise, even compacts cars have highest sales last year, it won't make high sales in the coming year.
What do you think? Thanks!
Intern
Joined: 10 Sep 2018
Posts: 1
In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

13 Oct 2018, 21:09
I don't understand how c) can be an assumption here. The analysts already know the exact order of profitability of all the vehicle categories last year. They already know that there are no categories that performed between SUV's and minivans because that is known data from the past, correct? So they aren't assuming the information in choice c) because they already know that info...I agree with kkhoward
Manager
Joined: 28 May 2018
Posts: 143
Location: India
Schools: ISB '21 (II)
GMAT 1: 640 Q45 V35
GMAT 2: 670 Q45 V37
GMAT 3: 730 Q50 V40
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

27 Jun 2019, 12:18
I spent half an hour trying to understand the solution given by MikeMcgarry only to realize that i had overlooked the word "respectively" in the question.
_________________
Please award KUDOS if my post helps. Thank you.
Intern
Joined: 14 Jun 2015
Posts: 15
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma  [#permalink]

### Show Tags

28 Jun 2019, 06:59
Hi...
As I read the question, Optn-C appears to me as an 'inference' and Optn-B appears as the 'Assumption'. Kindly clarify.
Re: In anticipation of the coming year, Tecumseh Autos, a national auto ma   [#permalink] 28 Jun 2019, 06:59

Go to page   Previous    1   2   [ 39 posts ]

Display posts from previous: Sort by