Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

It is currently 27 May 2017, 08:58

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In order to promote long-term rental of its apartments, ARC

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 10 Apr 2012
Posts: 276
Location: United States
Concentration: Technology, Other
GPA: 2.44
WE: Project Management (Telecommunications)
Followers: 5

Kudos [?]: 908 [1] , given: 325

GMAT ToolKit User Premium Member
In order to promote long-term rental of its apartments, ARC [#permalink]

Show Tags

New post 17 Aug 2013, 23:29
1
This post received
KUDOS
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

61% (06:10) correct 39% (02:34) wrong based on 212 sessions

HideShow timer Statistics

In order to promote long-term rental of its apartments, ARC Company offered a special 15 percent discount to all customers who have been renting ARC Company’s apartments for more than 2 years. After this innovation, a manager of ARC Company was surprised to notice that even though most of the company’s apartments had been rented for less than 2 years, most of the residents lived in apartments that were rented at discounted prices.

Which of the following, if true, would best help to explain the paradox above?
(A)On average, apartments that were rented at discounted prices were larger and more expensive to rent than apartments rented at full prices.
(B)The average number of people living in apartments rented at discounted prices was greater than the average number of people living in apartments rented at full price.
(C)Because of higher electricity and water bills, ARC Company was forced to raise rent on all its apartments by 5 percent.
(D)People who lived in several VIP apartments owned by ARC Company were not subject to the discount.
(E)All those who had been renting ARC apartments for more than 2 years chose to take advantage of the discount offer.


OA to follow ..
[Reveal] Spoiler: OA

Last edited by guerrero25 on 18 Aug 2013, 01:38, edited 1 time in total.
Request Expert Reply
If you have any questions
you can ask an expert
New!
Current Student
avatar
Status: It's Clobberin' Time
Joined: 16 Jul 2011
Posts: 118
Concentration: Marketing, General Management
GMAT 1: 680 Q49 V34
GMAT 2: 700 Q49 V35
GMAT 3: 750 Q49 V42
Followers: 4

Kudos [?]: 66 [0], given: 23

Premium Member Reviews Badge
Re: In order to promote long-term rental of its apartments, ARC [#permalink]

Show Tags

New post 18 Aug 2013, 00:58
I am not able to select any of the options simply because none of them are accounting for the premise in the argument here- that the discount was offered to people who had been renting the apartments for more than 2 years.
If I had a gun pointed to my head and had to guess and move on, I would have gone with B.

Can you tell us what is the source of this question?
2 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 10 Apr 2012
Posts: 276
Location: United States
Concentration: Technology, Other
GPA: 2.44
WE: Project Management (Telecommunications)
Followers: 5

Kudos [?]: 908 [2] , given: 325

GMAT ToolKit User Premium Member
Re: In order to promote long-term rental of its apartments, ARC [#permalink]

Show Tags

New post 18 Aug 2013, 01:41
2
This post received
KUDOS
Here is the OA
Explanation: The paradox above is that even though most apartments of ARC Company have been rented for less than 2 years and therefore were not discounted, most residents lived in discounted apartments. This information does not seem surprising if, as stated in Choice B, the average number of people living in apartments rented at discounted prices was greater than the average number of people living in apartments rented at full price. This statement shows that even though fewer apartments were rented at discounted prices than at full prices, it could be true that more people lived in apartments rented at discounted prices than in apartments rented at full prices.

A) The fact that apartments rented at discounted prices are bigger and more expensive does not explain why most people live in ARC apartments rented at discounted prices, even though most ARC apartments were rented at full prices.

B) Correct. This statement best explains the paradox in the argument above.

C) The argument is concerned with full and discounted rent prices; the size of those prices is not relevant.

D) This information, if anything, strengthens the paradox, as it was stated that most apartments were rented for less than two years. If VIP apartments were among those rented for less than two years, then this information is not relevant, as they would not be subject to the discount anyway. If VIP apartments were rented for more than 2 years, then even fewer of the apartments that were rented for more than 2 years are subject to the discount. In this case, it is even more surprising that most people who live in ARC apartments live in apartments rented at discounted prices.

E) This information is not important since it is still true that most apartments are rented at full prices but more people live in apartments rented at discounted prices.
1 KUDOS received
Current Student
avatar
Status: It's Clobberin' Time
Joined: 16 Jul 2011
Posts: 118
Concentration: Marketing, General Management
GMAT 1: 680 Q49 V34
GMAT 2: 700 Q49 V35
GMAT 3: 750 Q49 V42
Followers: 4

Kudos [?]: 66 [1] , given: 23

Premium Member Reviews Badge
Re: In order to promote long-term rental of its apartments, ARC [#permalink]

Show Tags

New post 18 Aug 2013, 05:09
1
This post received
KUDOS
Ah! What a clever little question this is as it tries to confound you with 2 different words - 'customers' & 'residents'. So, the apartments are up for discount to 'customers' who have been renting them for more than 2 years. But the premise that is given is 'most of the residents lived in apartments that were rented at discounted prices'. Key word here is 'residents'. So a 'customer' is just one person for who the renting agreement is drawn for. That 'customer' might have family of more than 1 person, and therefore there would exist multiple residents for the same apartment. The only option that resolves the paradox is option B which states that the larger average number of residents for the discounted apartments as compared to the average number of residents for non-discounted apartments is the reason for the same.

Hope this helps!
Senior Manager
Senior Manager
User avatar
G
Status: You have to have the darkness for the dawn to come
Joined: 09 Nov 2012
Posts: 255
Location: India
saurav: suman
Concentration: Operations, Technology
GPA: 4
WE: Engineering (Energy and Utilities)
Followers: 8

Kudos [?]: 76 [0], given: 154

GMAT ToolKit User Reviews Badge CAT Tests
Re: In order to promote long-term rental of its apartments, ARC [#permalink]

Show Tags

New post 21 Mar 2017, 11:06
1
This post was
BOOKMARKED
guerrero25 wrote:
In order to promote long-term rental of its apartments, ARC Company offered a special 15 percent discount to all customers who have been renting ARC Company’s apartments for more than 2 years. After this innovation, a manager of ARC Company was surprised to notice that even though most of the company’s apartments had been rented for less than 2 years, most of the residents lived in apartments that were rented at discounted prices.

Which of the following, if true, would best help to explain the paradox above?
(A)On average, apartments that were rented at discounted prices were larger and more expensive to rent than apartments rented at full prices.
(B)The average number of people living in apartments rented at discounted prices was greater than the average number of people living in apartments rented at full price.
(C)Because of higher electricity and water bills, ARC Company was forced to raise rent on all its apartments by 5 percent.
(D)People who lived in several VIP apartments owned by ARC Company were not subject to the discount.
(E)All those who had been renting ARC apartments for more than 2 years chose to take advantage of the discount offer.


OA to follow ..

Here we need to resolve the paradox
given most resident lived in discounted price apartment whereas most of the apartment rented fro less than two years
think if a large no of people share a single rented apartment and stay together then with in few apartment, many people can live

This is exactly said in option B and hence answer other four answer choices are irrelevant
_________________

You have to have the darkness for the dawn to come.

Give Kudos if you like my post

Manager
Manager
avatar
B
Joined: 13 Feb 2015
Posts: 224
Followers: 2

Kudos [?]: 2 [0], given: 32

In order to promote long-term rental of its apartments, ARC [#permalink]

Show Tags

New post 21 Mar 2017, 15:44
Please, specify the source of this question
_________________

Please Read: Verbal Posting Rules

In order to promote long-term rental of its apartments, ARC   [#permalink] 21 Mar 2017, 15:44
    Similar topics Author Replies Last post
Similar
Topics:
1 In order to improve the long-term savings rate of its citizens, babuvgmat 5 03 Sep 2016, 13:22
1 Happygo, a car rental company, lowered its prices dramatically gaining Harley1980 6 17 Sep 2015, 12:27
7 In order to promote off-season business, Mt. Dunmore Lodge tarun 15 09 Aug 2013, 23:53
3 Historically, the drug industry promoted its products to anaik100 8 16 Apr 2017, 02:14
3 Independent concert promoters, in order to maintain their FN 13 01 Dec 2016, 09:04
Display posts from previous: Sort by

In order to promote long-term rental of its apartments, ARC

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.