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

It is currently 15 Oct 2019, 20:21

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

In the past few months, studies claiming that

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Intern
Intern
avatar
B
Joined: 11 Feb 2019
Posts: 13
In the past few months, studies claiming that  [#permalink]

Show Tags

New post 23 Feb 2019, 08:43
2
7
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

30% (02:17) correct 70% (02:27) wrong based on 189 sessions

HideShow timer Statistics

In the past few months, studies claiming that many energy drinks contain substances that can be hazardous to our health in spite of some benefits accorded by them have confused the regular consumer. In the wake of this, detailed literature released by the FDA will spread awareness about the exact ingredients used by giving an exhaustive list of ingredients and the extent of their use in all the currently available health drinks. The health guide will definitely adversely impact the revenue from such health drinks for most health drink manufacturers.

Which of the following, if true, most strengthens the argument?


A
The FDA mandates health drink manufacturers to adhere to the guidelines laid down in order to ensure the minimization of risks to human health.

B
In today’s digital era, a vast resource pool of knowledge on the internet makes information readily available to people.

C
Energy drinks can never be complete substitutes of the nutrients that are present in their natural forms in fruits and vegetables.

D
Even though the manufacturers provide the names of all the ingredients used in the health drinks, they definitely do not furnish their combinations and percentage compositions on the labels.

E
Many health drink manufacturers will be forced to change the composition of their products in order to ensure that their sales is not adversely impacted by the publication of the health guide.
Senior Manager
Senior Manager
User avatar
V
Joined: 22 Feb 2018
Posts: 420
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 23 Feb 2019, 08:55
1
1
OA:D

Conclusion: The health guide will definitely adversely impact the revenue from such health drinks for most health drink manufacturers.

Option D provides the reason why revenue/sale will decrease if the health guide is published.
_________________
Good, good Let the kudos flow through you
Intern
Intern
avatar
B
Joined: 11 Feb 2019
Posts: 13
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 23 Feb 2019, 09:00
1
Princ wrote:
OA:D

Conclusion: The health guide will definitely adversely impact the revenue from such health drinks for most health drink manufacturers.

Option D provides the reason why revenue/sale will decrease if the health guide is published.



Didn't really get why D provides a reason for sure shot decrease in revenue? The guide is just going to give the data, it can positive or negative for the companies. How does it provide a reason for decrease in revenue?
Manager
Manager
User avatar
G
Joined: 10 Apr 2018
Posts: 219
Location: India
Concentration: Entrepreneurship, Strategy
GMAT 1: 680 Q48 V34
GPA: 3.3
Premium Member Reviews Badge CAT Tests
In the past few months, studies claiming that  [#permalink]

Show Tags

New post Updated on: 04 Mar 2019, 00:54
2
advikaggarwal wrote:
Princ wrote:
OA:D

Conclusion: The health guide will definitely adversely impact the revenue from such health drinks for most health drink manufacturers.

Option D provides the reason why revenue/sale will decrease if the health guide is published.



Didn't really get why D provides a reason for sure shot decrease in revenue? The guide is just going to give the data, it can positive or negative for the companies. How does it provide a reason for decrease in revenue?


Option D is correct because lack of information on combinations and on percentage compositions of the mentioned ingredients will not help people to make careful decision about the health drinks. Simply providing the details of the names of all the ingredients will not enough for people to build their trust towards the health drinks.

Based on information provided in the passage, it can't be logically concluded that this step will adversely affect the sales; however, this option is more relevant than the others. The aim of CR questions is not to find the most logical option, but to find the best suited option, as in this case.

Originally posted by iamsiddharthkapoor on 23 Feb 2019, 12:07.
Last edited by iamsiddharthkapoor on 04 Mar 2019, 00:54, edited 2 times in total.
Manager
Manager
avatar
B
Joined: 16 May 2018
Posts: 84
Location: Hungary
Schools: Queen's MBA'20
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 23 Feb 2019, 12:52
I picked D, E was tempting but it is talking about future. It is sort of relating to the original plan but not strengthening it
Intern
Intern
User avatar
B
Status: when you say,"I can or I can't", Both times you are right!
Joined: 26 Nov 2018
Posts: 31
Location: India
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 03 Mar 2019, 23:44
iamsiddharthkapoor wrote:
advikaggarwal wrote:
Princ wrote:
OA:D

Conclusion: The health guide will definitely adversely impact the revenue from such health drinks for most health drink manufacturers.

Option D provides the reason why revenue/sale will decrease if the health guide is published.



Didn't really get why D provides a reason for sure shot decrease in revenue? The guide is just going to give the data, it can positive or negative for the companies. How does it provide a reason for decrease in revenue?


Option D is correct because lack of information on combinations and on percentage compositions of the mentioned ingredients will not help people to make careful decision about the health drinks. Simply providing the details of the names of all the ingredients will not enough for people to build their trust towards the health drinks.

Based on information provided in the passage, it can't be logically concluded that this step will adversely affect the sales; however, this option is more relevant than the others. The aim of CR questions is not to find the most logical option, but to find the best suited option, as in this case.

If my solution has helped, kindly give me Kudos.



I thought E would be the right option
manufacturers are forced to make a change in drink, it implies revenue is going down: which is strengthening the conclusion

Help Please!!!
Manager
Manager
User avatar
G
Joined: 21 May 2017
Posts: 99
Location: India
GMAT 1: 660 Q49 V31
GMAT ToolKit User Premium Member CAT Tests
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 04 Mar 2019, 00:49
Why not B as it says "In today’s digital era, a vast resource pool of knowledge on the internet makes information readily available to people." so if info is readily available to people then they can easily match that with what is provded by the manufacturers and not use the products that have different ingredients.
How is this understanding incorrect and D is correct ??
Please help.
Manager
Manager
avatar
S
Joined: 21 Apr 2018
Posts: 73
Location: India
GMAT 1: 710 Q50 V35
GMAT 2: 750 Q49 V42
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 04 Mar 2019, 01:29
zac123 wrote:
Why not B as it says "In today’s digital era, a vast resource pool of knowledge on the internet makes information readily available to people." so if info is readily available to people then they can easily match that with what is provded by the manufacturers and not use the products that have different ingredients.
How is this understanding incorrect and D is correct ??
Please help.


Hi zac123,

I can understand where is your doubt stemming from, but do you think that the information available on the internet/report by FDS be helpful if people already knew about it. That is what Option D is trying to say that people do not know about all this information and if they come to know about it, it might impact the revenues.

I hope it helps.
Manager
Manager
avatar
S
Joined: 21 Apr 2018
Posts: 73
Location: India
GMAT 1: 710 Q50 V35
GMAT 2: 750 Q49 V42
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 04 Mar 2019, 01:33
Hi Rupesh1Nonly

Hi,

So, at this level, I can comfortably assume that the revenues would change if either sales/profits changes. Now, even if the composition of the drink changes, it nowhere implies the cost associated with them would change. Also, it is mentioned that the drinks are changed to keep the sales intact. And, hence if negated it would nowhere attack our conclusion.

I hope it helps.
Intern
Intern
avatar
B
Joined: 28 Sep 2018
Posts: 1
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 04 Mar 2019, 03:20
I opted for D.
My reasoning: There is a guide which tells the consumer the exact names and contents of ingredients in ALL available energy drinks and the risk they carry.But up until the guide was introduced the drinks had the list of ingredients BUT NOT the amounts.

If the guide is introduced it will show all the information and customers will be able to diferenciete between drinks based on that info.And the key word for me was It will affect refenue of MOST manuf...MOST but not ALL(there are some with contents that are just fine)

I hope I helped...

Posted from my mobile device
Intern
Intern
avatar
B
Joined: 26 Aug 2017
Posts: 27
Location: Singapore
Concentration: Strategy, General Management
Schools: HBS '21
WE: Management Consulting (Consulting)
GMAT ToolKit User CAT Tests
In the past few months, studies claiming that  [#permalink]

Show Tags

New post 14 Mar 2019, 07:14
In order to strengthen the argument as a whole and therefore increase the likelihood of the conclusion i.e. revenues must be adversely impacted, option E is less likely to be the correct answer as it shows manufacturers can adjust their product composition to cushion the impact of the health guide's new transparency introduced to consumers.

Option D serves best as part of an argument where manufacturers did not reveal the contents of their products, but likely later on suffered adversely because the health guide brought to light what horrors they put in their products.

Sounds like a real life example though. In any case, it's like setting up for the conclusion to be more believable. Hence, Option E is a definite trap and Option D serves best as part of an argument that renders the conclusion a bit more likely to be true.
Intern
Intern
avatar
B
Joined: 21 Jan 2019
Posts: 10
Location: India
Concentration: Strategy, Finance
WE: Consulting (Consulting)
Re: In the past few months, studies claiming that  [#permalink]

Show Tags

New post 14 Mar 2019, 10:51
advikaggarwal wrote:
In the past few months, studies claiming that many energy drinks contain substances that can be hazardous to our health in spite of some benefits accorded by them have confused the regular consumer. In the wake of this, detailed literature released by the FDA will spread awareness about the exact ingredients used by giving an exhaustive list of ingredients and the extent of their use in all the currently available health drinks. The health guide will definitely adversely impact the revenue from such health drinks for most health drink manufacturers.

Which of the following, if true, most strengthens the argument?


A
The FDA mandates health drink manufacturers to adhere to the guidelines laid down in order to ensure the minimization of risks to human health.

B
In today’s digital era, a vast resource pool of knowledge on the internet makes information readily available to people.

C
Energy drinks can never be complete substitutes of the nutrients that are present in their natural forms in fruits and vegetables.

D
Even though the manufacturers provide the names of all the ingredients used in the health drinks, they definitely do not furnish their combinations and percentage compositions on the labels.

E
Many health drink manufacturers will be forced to change the composition of their products in order to ensure that their sales is not adversely impacted by the publication of the health guide.



Conclusion - Health guide will definitely adversely impact the revenues of health drink manufacturers.

In order to support this conclusion, I should find an information piece which would make me believe that the sales dip is certain.

Option D correctly captures this.
Intern
Intern
avatar
B
Joined: 22 Oct 2018
Posts: 17
Location: India
Schools: ISB '21
GMAT 1: 690 Q42 V41
In the past few months, studies claiming that  [#permalink]

Show Tags

New post 14 Apr 2019, 02:39
OK the answer is D , but E is very very tempting . and the reason why E is wrong is very very Subtle , allow me to explain my reasoning
and gift some KUDOS if you find it helpful :)

Premise : confusion is caused by studies claiming that health drinks may be injurious to health -- > (1)
FDA is launching a guide containing the health drink vs exact percentage of ingredients used in them --> (2)
This guide will lead to decrease in REVENUE for most health drink manufacturers-->(3)

here between (2) and (3) there is a definite gap in logic . how is the guide going to reduce the Revenue of these manufacturers??

ASSUMPTIONS:
#most people will read the guide
# most people are willing to stop drinking these health drinks if the ingredients are in high %
# most manufacturers use harmful ingredients in such high % that people would choose to not buy them

Reason E is very attractive :

It says manufacturers will have to change the composition of the drink so that their sale is not effected
-->> this immediately sounds familiar and similar to what we assumed in the last two assumptions above ( people wouldn't
buy otherwise)
so we pick E

but E is wrong since the question says THE GUIDE WILL LEAD TO REDUCE IN REVENUE ( not profit )
and E says manufacturers will change the composition to not effect the SALES

!!!!!! if the sales is not effected then the revenue will not be affected
eg . i sell candies at 5 dollars a piece and make a profit of 3 dollars---> im selling 5 candies a day.therefore revenue =25 $
now i have had to change my ingredients to make sure the sales is the same
my cost of making has increased to 3$ but the price im selling for is still 5$ , but im still selling 5 candies
-------> my revenue is still 25 $ although my profit might have decreased

takeaway --> to reduce revenue , my sales must be going down

But E specifically says SALES remains same

thus E is wrong

D says --> People were not previously aware of the percentage of ingredients in the health drinks
this shields the argument against the question that , people may previously know the % aswell and that guide isnt providing anything extra to make the sales go down .

thus D is the winner

take away--> one cannot prethink all possible assumptions , one must be flexible to new assumptions on which the right option is built
---> REVENUE is not profit , REVENUE is effected by sales
GMAT Club Bot
In the past few months, studies claiming that   [#permalink] 14 Apr 2019, 02:39
Display posts from previous: Sort by

In the past few months, studies claiming that

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





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne