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Is it cheaper for a business to move freight by truck or rail? Long-ha

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Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post Updated on: 03 Oct 2019, 03:34
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Business Consultant (Tab 1)
Is it cheaper for a business to move freight by truck or rail? Long-haul shipments of at least 800 kilometers that weigh between 22,500 and 36,000 kilograms are economical to move by either mode. However, special cargo like coal and heavier shipments are only economical to ship by rail, and short-haul shipments are only economical to ship by truck.

The average cost to transport freight by truck varies, ranging from €0.1021 per ton- kilometer (where 1 ton = 1,000 kilograms) for shipments less than 400 kilometers, to €0.0371 per ton-kilometer for shipments more than 800 kilometers. The aggregated average cost for all rail shipments is approximately €0.0108 per ton-kilometer and is €0.0129 per ton-kilometer for intermodal shipments—those involving both trains and trucks. Intermodal shipments use trucking-trailers carried on flatbed railcars, allowing cargo to move between trucks and trains without having to be loaded into different containers.

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Rail Advocate (Tab 2)
Trucks operate on publicly financed highways. However, freight railroad companies pay nearly all costs related to their tracks, bridges, and tunnels. From 1980 to 2009, railroads reinvested approximately $325 billion of their own funds - approximately 30 percent of their total revenue - to maintain and improve their tracks and machinery. To reduce this disparity, we propose tax incentives for any project that expands freight rail capacity. The benefits to the public of such incentives would far exceed their cost. Railroads are more fuel efficient than trucks. For example, shifting 10 percent of the long-distance freight that currently moves only by truck to rail instead would save 4 billion liters of fuel per year. In addition to their better fuel economy, using railroads helps reduce roadway congestion.

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Question #1
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Spoiler: :: OAs
Question #1: Cannot be determined, Cannot be determined and Can be determined.
Question #2: E. 100 billion liters
Question #3: Yes No and Yes.

Originally posted by GinGMAT on 04 Jun 2016, 16:27.
Last edited by SajjadAhmad on 03 Oct 2019, 03:34, edited 2 times in total.
Updated - Complete topic (29).
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 06 Jun 2016, 21:31
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Hi,

The argument states that the railroads reinvested approximately 30% of their total revenue on tracks and machinery.

Approximately 30% means that the answer can take any value between 25% and 34%. So we cannot infer the exact percentage. Answer is 'Cannot be Determined'.
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New post 06 Jun 2016, 19:17
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It seems to be all semantics (or word choice) to me. The paragraph talks about the 30% of revenue the railroads contributed to tracks, bridges and tunnels, while the question asks about tracks and machinery.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 07 Jun 2016, 16:29
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Vyshak wrote:
Hi,

The argument states that the railroads reinvested approximately 30% of their total revenue on tracks and machinery.

Approximately 30% means that the answer can take any value between 25% and 34%. So we cannot infer the exact percentage. Answer is 'Cannot be Determined'.


How confident are you on this? I want to make sure I watch out for this trap in the future if this is in fact the correct rationale for this being "Cannot be Determined" and there is no other reason.

alexmicah wrote:
It seems to be all semantics (or word choice) to me. The paragraph talks about the 30% of revenue the railroads contributed to tracks, bridges and tunnels, while the question asks about tracks and machinery.


I think this is incorrect because the next sentence does specify "tracks and machinery" when talking about the percent of revenue spent.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 14 Jun 2016, 02:22
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GinGMAT wrote:
Could someone please help me with this IR question from GMAT Exam Prep 2?

Why is part 1 not "Can be determined"? Isn't it 30% from the passage?


The question ask only for "maintain" the tracks and machinery, where as in the passage it is maintain and improve.
Hence it cannot be determined.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 14 Jun 2016, 07:53
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nayanparikh wrote:
GinGMAT wrote:
Could someone please help me with this IR question from GMAT Exam Prep 2?

Why is part 1 not "Can be determined"? Isn't it 30% from the passage?


The question ask only for "maintain" the tracks and machinery, where as in the passage it is maintain and improve.
Hence it cannot be determined.


Yeah I was leaning towards this explanation too. Still seems to be very nit-picky.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 20 Jun 2016, 14:54
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GinGMAT wrote:
nayanparikh wrote:
GinGMAT wrote:
Could someone please help me with this IR question from GMAT Exam Prep 2?

Why is part 1 not "Can be determined"? Isn't it 30% from the passage?


The question ask only for "maintain" the tracks and machinery, where as in the passage it is maintain and improve.
Hence it cannot be determined.


Yeah I was leaning towards this explanation too. Still seems to be very nit-picky.



the above reasoning is correct .Approximately doesn't have any role here.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 30 Jun 2016, 10:36
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GinGMAT wrote:
Could someone please help me with this IR question from GMAT Exam Prep 2?

Why is part 1 not "Can be determined"? Isn't it 30% from the passage?

1.Can't
2.Can't
3.Can
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 21 Aug 2016, 08:19
GinGMAT wrote:
Could someone please help me with this IR question from GMAT Exam Prep 2?

Why is part 1 not "Can be determined"? Isn't it 30% from the passage?


I made the same mistake. I believe the passage says from year X to Y, where the statement says the machinery from From X to Y.
2 different meanings hence cannot be determined.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 27 Sep 2016, 14:10
hsbinfy wrote:

The question ask only for "maintain" the tracks and machinery, where as in the passage it is maintain and improve.
Hence it cannot be determined.

the above reasoning is correct .Approximately doesn't have any role here.


Agree with this. If we use the "Approximate" logic, we will not be able to determine answer to the 3rd question.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 14 Jan 2017, 16:16
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This is a stupid question. What is the difference between "maintain" and "improve"? Can improving the tracks not also be considered a form of maintenance? I don't understand what the GMAT is going for with these questions...
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 17 Jun 2017, 08:27
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GinGMAT wrote:
nayanparikh wrote:
GinGMAT wrote:
Could someone please help me with this IR question from GMAT Exam Prep 2?

Why is part 1 not "Can be determined"? Isn't it 30% from the passage?


The question ask only for "maintain" the tracks and machinery, where as in the passage it is maintain and improve.
Hence it cannot be determined.


Yeah I was leaning towards this explanation too. Still seems to be very nit-picky.



well in two minutes and under pressure :roll:

don't worry... who cares about IR
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 24 Dec 2017, 07:56
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testprepabc wrote:
hsbinfy wrote:

The question ask only for "maintain" the tracks and machinery, where as in the passage it is maintain and improve.
Hence it cannot be determined.

the above reasoning is correct .Approximately doesn't have any role here.


Agree with this. If we use the "Approximate" logic, we will not be able to determine answer to the 3rd question.

I disagree, the third question specifically requests for approximate figure....
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 10 Jun 2018, 12:06
Folks,

This is a very odd question. Don't worry about it much. The only explanation is "maintain" vs "maintain and improve". Usually IR questions are not this weird. Just make sure you pay attention to detail in general.
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 22 Jul 2018, 21:49
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Another question from the same set

Please let me know if anyone is able to figure out how to solve this question.

Thanks in advance.
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New post 18 Aug 2018, 16:22
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sk1007 wrote:
Another question from the same set

Please let me know if anyone is able to figure out how to solve this question.

Thanks in advance.


Hi Sk1007,

the answer to this one is as follows:

The latter part of the paragraph under the "rail advocate" section states that "shifting 10 percent of the long-distance freight that currently moves only by truck to rail instead would save 4 billion liters of fuel per year". The question is asking for "the total amount of fuel that would be saved in the next 5 years if half of the long-haul freight that currently moves by truck were instead moved by train".

So if 10% conversion equals 4 billion saved per year, then 50% conversion (as the question asks for "half") would saved 5x, or 20 billion liters per year, and over 5 years this would constitute 20*5 = 100 billion liters saved in total.

Hope this helps.
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New post 23 Aug 2018, 06:39
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sk1007 wrote:
Another question from the same set

Please let me know if anyone is able to figure out how to solve this question.

Thanks in advance.


Shifting 10% saves 4 billion per year, therefore 50% saves 20 billion per year. Over a five year period that is 5 * 20 = 100 billion
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 30 Oct 2018, 21:19
Question no:1 can’t be determined.
Reason:
In Passage it is given 30% invest in improve and maintain.

Question is asking for only maintenance.
Passage clearly mentioned that improve means laying additional rail track. (To replace truck transport by rail).

So investment in maintenance can’t be determined.


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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 17 Nov 2018, 03:00
sk1007 wrote:
Another question from the same set

Please let me know if anyone is able to figure out how to solve this question.

Thanks in advance.


10% results in savings of 4bn litres per year
so 50% (As asked for) equals 20bn per year.

Hence in 5 years, it equals 20*5=100bn litres

Hope it helps
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha  [#permalink]

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New post 17 Jul 2019, 07:44
Hey! I'm a bit late but does anybody know why I'm wrong on that last one "Transportation cost per unit of freight?"
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Re: Is it cheaper for a business to move freight by truck or rail? Long-ha   [#permalink] 17 Jul 2019, 07:44

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