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Infotek, a computer manufacturer in Katrovia, has just introduced a

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Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 18 Jun 2016, 10:23
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GMAT® Official Guide 2017

Practice Question
Question No.: CR 616
Page: 531

Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer model that sells for significantly less than any other model. Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price. Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.

Which of the following is an assumption on which the argument depends?

(A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers.

(B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model.

(C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use.

(D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future.

(E) Most personal computers purchased in Katrovia are intended for home use.

Infotek

Step 1: Identify the Question

The word assumption in the question stem indicates that this is a Find the Assumption problem.

Step 2: Deconstruct the Argument

For Assumption questions, find the premises and conclusion. If you are able to brainstorm any assumptions that the author must hold in order to draw that conclusion, note those assumptions.

I: new model << $

few HH w/no comp would buy

So, new model WON’T > # of comps in HH

Infotek just launched a new computer that is significantly cheaper than all others on the market. Research shows, however, that households that don’t already have computers probably aren’t going to buy one even if it is really cheap. Therefore, the author concludes, the number of computers in homes probably isn’t going to increase.

Step 3: Pause and State the Goal

What does the author assume in drawing this conclusion?

The author has provided evidence that homes that don’t already have computers are unlikely to buy one. The conclusion, though, is about the number of computers in any homes, not just the homes that don’t already have computers. What if someone who already has one computer decides to buy a second, cheaper computer?

That behavior could actually increase the number of computers in homes overall. So the author is also assuming that households that already have computers aren’t going to buy the new, inexpensive Infotek computer.

Step 4: Work from Wrong to Right

(A) While this choice may be true, the author does not have to assume that this is how Infotek is able to offer such a cheap computer. There could be other reasons that Infotek was able to decrease costs.

(B) The argument does not indicate whether Infotek’s new computer is improved. It indicates only that the new model is cheaper than other computers.

(C) CORRECT. In order for the author to draw the given conclusion, she must assume that people who already have computers are unlikely to buy this new Infotek model and, as a result, add a new computer to the household.

(D) The relative price of other computers does not impact whether the new Infotek model will result in an increase in the number of computers per household.

(E) The reason that computers are purchased or used does not impact whether the new, cheaper model will result in any kind of increase in the number of computers per household.

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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 16 Apr 2017, 04:17
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AbdurRakib wrote:
Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer model that sells for significantly less than any other model. Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price. Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.

Which of the following is an assumption on which the argument depends?

(A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers.
(B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model.
(C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use.
(D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future.
(E) Most personal computers purchased in Katrovia are intended for home use.

OG 2017 New Question, CR616, P531


Infotek
 
Step 1: Identify the Question

The word assumption in the question stem indicates that this is a Find the Assumption problem.

Step 2: Deconstruct the Argument

For Assumption questions, find the premises and conclusion. If you are able to brainstorm any assumptions that the author must hold in order to draw that conclusion, note those assumptions.

I: new model << $
few HH w/no comp would buy
So, new model WON’T > # of comps in HH

Infotek just launched a new computer that is significantly cheaper than all others on the market. Research shows, however, that households that don’t already have computers probably aren’t going to buy one even if it is really cheap. Therefore, the author concludes, the number of computers in homes probably isn’t going to increase.

Step 3: Pause and State the Goal

What does the author assume in drawing this conclusion?

The author has provided evidence that homes that don’t already have computers are unlikely to buy one. The conclusion, though, is about the number of computers in any homes, not just the homes that don’t already have computers. What if someone who already has one computer decides to buy a second, cheaper computer?

That behavior could actually increase the number of computers in homes overall. So the author is also assuming that households that already have computers AREN'T going to buy the new, inexpensive Infotek computer.

Step 4: Work from Wrong to Right

(A) While this choice may be true, the author does not have to assume that this is how Infotek is able to offer such a cheap computer. There could be other reasons that Infotek was able to decrease costs.
(B) The argument does not indicate whether Infotek’s new computer is improved. It indicates only that the new model is cheaper than other computers.
(C) CORRECT. In order for the author to draw the given conclusion, she must assume that people who already have computers are unlikely to buy this new Infotek model and, as a result, add a new computer to the household.
(D) The relative price of other computers does not impact whether the new Infotek model will result in an increase in the number of computers per household.
(E) The reason that computers are purchased or used does not impact whether the new, cheaper model will result in any kind of increase in the number of computers per household.
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 18 Jun 2016, 22:38
Premise: Infotek has launched new personal computer model. - Costs less
Market research - Very few households without pc buy the new model.

Conclusion: Introduction of new model does not lead to an increase in the number of computers.

A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers. - Incorrect - Out of context

B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model. - Incorrect - This should have led to increase in number of computers. But it did not happen.

C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use. - Correct

D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future. - Incorrect - Out of context

E) Most personal computers purchased in Katrovia are intended for home use. - Incorrect - Out of scope. The pc's brought by households can be used for office work/home use, but this does not help explain the reason for the number of computers to remain the same.

Answer: C
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 18 Jun 2016, 23:00
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Conclusion - Introducing new model is unlikely to increase the number of computers in Katrovian homes
Premise - Cost-effective computers of Infotek are selling less than any model.
Households without personal computers would not buy a computer regardless of its price.

Assumption - House holds should not buy another personal computer, if this happens than introduction of new model
might lead to increase of computers.

Using the Assumption-negation technique- can easily assure the assumption answer C if negated weakens the conclusion.
If Katrovians in households that already have computers are likely to purchase the new Infotek model as an additional computer for home use.
- than introducing new model is likely to increase the number of computers in Katrovian homes
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 23 Oct 2016, 07:40
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[quote="AbdurRakib"]Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer model that sells for significantly less than any other model. Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price. Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.

Which of the following is an assumption on which the argument depends?

A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers.
B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model.
C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use.
D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future.
E) Most personal computers purchased in Katrovia are intended for home use.

Here the conclusion is "introducing the new model is unlikely to increase the number of computers in Katrovian homes."
and this conclusion is based on the premise "that very few Katrovian households without personal computers would buy a computer, regardless of its price"

but here is the gap
what about old customers or customers who already have pcs.
C indicates the same
on negating C we find that negated option C shatters the conclusion.
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 02 Dec 2016, 05:36
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Premise: Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer model that sells for significantly less than any other model.
Premise: Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price.

Conclusion: Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.

- PRICE is not the major contributor to the decision of buying a PC
- There are other specifications that matter MORE


A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers.
QUALITY ? We do not know if this is an important factor or not in the buying decision ?
Incorrect.

B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model.
But how does this helps the conclusion ?
Incorrect

C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use.
Negated statement: Katrovians in households that already have computers ARE LIKELY to purchase the new Infotek model as an additional computer for home use.
This choice clearly shatters the conclusion because it states opposite of what is stated in the conclusion.
Correct.

D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future.
Incorrect because it does not help in understanding that WHY the number of models of the new PC would not increase in the households ?

E) Most personal computers purchased in Katrovia are intended for home use.
Irrelevant.
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 31 Dec 2017, 07:40
Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer model that sells for significantly less than any other model. Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price. Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.

Which of the following is an assumption on which the argument depends?


Conclusion: Katrovian unlikely to buy new PC model

Pre-Think: Katrovian already have the PC/ or Katrovian already have an earlier version of PC from Infotek

(A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers- out of scope
(B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model. Opposite
(C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use- Correct answer
(D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future- out of scope-
(E) Most personal computers purchased in Katrovia are intended for home use.- Purpose not defined
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 31 Jan 2018, 05:28
I was hesitating between B and C and the elimination technique helped me to find out.

Best!
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 17 Feb 2018, 06:49
Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer model that sells for significantly less than any other model. Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price. Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.

Which of the following is an assumption on which the argument depends?

(A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers. This choice cannot be an assumption to conclude that the number of computers in Katrovian homes is unlikely to increase
(B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model. Irrelevant and in no way affects the conclusion.
(C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use. Aah!! Negating this choice will break the conclusion by saying that the number of computers in Katrovian homes can actually increase with the introduction of new model. Right choice. :-)
(D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future. Cannot be an assumption. This choice does not bridge the gap to conclude why new model could not increase number of computers in Katrovian households.
(E) Most personal computers purchased in Katrovia are intended for home use. Irrelevant choice.
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Re: Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 01 Nov 2018, 01:29
Given the premise, "Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price," the target segment is "households WITHOUT personal computers"

Since Option C talks about those who already have at least one computer, is Option C out of scope?
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Infotek, a computer manufacturer in Katrovia, has just introduced a  [#permalink]

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New post 01 Nov 2018, 10:27
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jack0997 wrote:
Given the premise, "Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price," the target segment is "households WITHOUT personal computers"

Since Option C talks about those who already have at least one computer, is Option C out of scope?


Be really, really, really careful with the phrase "out of scope." Where that's a consideration is when an answer choice is out of scope of the conclusion. But here the conclusion is:

Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.

Note that the conclusion doesn't care whether those homes already have a computer or not - it's just concerned with the number of computers in (any) Katrovian homes.

The phrase you're talking about is a premise, not a conclusion. It divides all Katrovian homes (the scope of the conclusion) into two categories: 1) those that already have computers (for whom this new, lower-priced model won't have an impact), and 2) homes that already have a computer. The premise says that the plan won't address group #1, so if you recognize that gap you can anticipate that the right answer has to do with group #2.

Back to the larger point: be (really really really) careful with "out of scope" as a standalone phrase...I see people use it a lot as a proxy for "I don't understand it" or "I don't like it." What it really means if used correctly is that you 1) understand the specific scope of the conclusion and then 2) recognize that an answer choice misses that specific scope of the conclusion. The larger message is "the conclusion is king" - you have to understand the specifics of the conclusion and then use that to determine where the gap in logic is. Here to me that's "hey the conclusion is about all homes but the main premise only deals with one type of homes - those without computers - so the argument is missing information about the other type of homes, those that already have computers."
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