It is currently 21 Sep 2017, 12:44

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

Last August the XT chain

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

Hide Tags

Manager
Manager
avatar
Joined: 01 Sep 2016
Posts: 120

Kudos [?]: 6 [0], given: 72

Re: Last August the XT chain [#permalink]

Show Tags

New post 13 Sep 2016, 23:24
Thanks,
Your explanation to A/C is perfect and clear 8-)

cssk wrote:
I think I can add my inputs here. First of all, take this for granted that carrying out a promotion can lead to increase in sales but may not result in an immediate increase in profits or returns.

Last August the XT chain of gasoline stations had a temporary sales promotion in effect. In the promotion, any customer who made a purchase of ten or more gallons of gasoline was entitled to a free car wash. For the month of August, XT experienced a ten percent increase in gasoline sales as compared to sales in August the previous year, so evidently the promotion was successful as a means of boosting sales.
In evaluating the argument, it would be most helpful to answer which of the following?
A. In the areas in which XT’s gasoline stations operate, how did total combined gasoline sales for all gasoline stations last August compare with sales for the previous August? Sounds good. If all the gasoline stations including those that did not implement a promotional plan see an increase in sales along with XT chain, then the success cannot be attributed to the promotion. So answer to this question evaluates our conclusion.
B. Was the money that XT earned from the increase in gasoline sales enough to offset the cost of providing free car washes during the promotion? Whether cost of providing free car washes can be offset by the increase in gasoline sales is irrelevent to find whether the increase in sales is actually due to the promotion.
C. Were there any customers who bought ten or more gallons at an XT gasoline station during the promotion who would have or more gallons at an XT gasoline in lower quantities, but more frequently, if the promotion had not been in effect? Trap answer. How the customers bought those quantities, be it in large quantities at a time ot in smaller quantities frequently, is totally useless to identify the effect of a promotion on sales.
D. Did XT or any of its gasoline stations have to pay other businesses to provide the car washes that customers were offered in the promotion? Same as B and C, this choice is irrelevent too.
E. Are XT’s gasoline sales in August usually significantly higher than one twelfth of XT’s annual gasoline sales? The answer yes or no this question would not help evaluate our conclusion.

Kudos [?]: 6 [0], given: 72

Director
Director
avatar
S
Joined: 12 Dec 2016
Posts: 808

Kudos [?]: 7 [0], given: 744

Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
GMAT ToolKit User Premium Member CAT Tests
Re: Last August the XT chain [#permalink]

Show Tags

New post 03 Jul 2017, 20:54
B is just a strengthener.
C would have been correct if there had been no "but more frequently". Even if that is the case, C is still incorrect because C still cannot show a causal relation between the promotion and the sales, but a correlation; in other word, C is not an assumption in either scenario.

Kudos [?]: 7 [0], given: 744

VP
VP
User avatar
G
Status: Learning
Joined: 20 Dec 2015
Posts: 1025

Kudos [?]: 53 [0], given: 499

Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: 314 Q157 V157
GPA: 3.4
WE: Manufacturing and Production (Manufacturing)
Re: Last August the XT chain [#permalink]

Show Tags

New post 07 Jul 2017, 07:46
An excellent question .I took a long time to answer it but still got it wrong .
Agree with OA
The problem with C is that we can not conclusively say that it helped in boosting sales .
Some people may have bought frequently and the amount of gasoline bought might be or might be not greater than the 10 gallons of gasoline .
_________________

We are more often frightened than hurt; and we suffer more from imagination than from reality

Kudos [?]: 53 [0], given: 499

Director
Director
avatar
S
Joined: 12 Nov 2016
Posts: 743

Kudos [?]: 32 [0], given: 157

Re: Last August the XT chain [#permalink]

Show Tags

New post 25 Aug 2017, 22:14
This is a very deceptive question- the GMAT wants to bait you into C; however, the issue with C is that it would lead to a conclusion about the performance of XT to other companies- in order to evaluate the efficacy of XT's promotion the more logical comparison would be the sales of gasoline before and after the promotion w/r/t XT which A does.

Posted from my mobile device

Kudos [?]: 32 [0], given: 157

Manager
Manager
avatar
B
Joined: 02 Nov 2015
Posts: 176

Kudos [?]: 21 [0], given: 121

GMAT 1: 640 Q49 V29
Premium Member CAT Tests
Re: Last August the XT chain [#permalink]

Show Tags

New post 26 Aug 2017, 00:15
Totally stumbled. I chose B but the answer mentioned is A.

Yet to understand..very tough.

Sent from my Lenovo TAB S8-50LC using GMAT Club Forum mobile app

Kudos [?]: 21 [0], given: 121

Re: Last August the XT chain   [#permalink] 26 Aug 2017, 00:15

Go to page   Previous    1   2   [ 25 posts ] 

    Similar topics Author Replies Last post
Similar
Topics:
8 Don s, a chain of supermarkets, has entered into an idan1984 3 14 Oct 2016, 07:02
1 Child s World, a chain of toy stores, has relied on a sagarsabnis 12 17 Jul 2016, 13:50
6 EXPERTS_POSTS_IN_THIS_TOPIC Don s, a chain of supermarkets, has entered into an raven678 12 03 Sep 2016, 02:45
13 Last year a chain of fast-food restaurants, whose menu had always cent AbdurRakib 14 20 Sep 2016, 11:50
19 EXPERTS_POSTS_IN_THIS_TOPIC TheaterGoer: In January of last year the Megaplex chain of guerrero25 13 09 Feb 2017, 18:27
Display posts from previous: Sort by

Last August the XT chain

  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 | Emoji artwork provided by EmojiOne

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®.