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# MGMAT

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Manager
Joined: 17 Jan 2010
Posts: 125
Concentration: General Management, Strategy
GPA: 3.78
WE: Engineering (Manufacturing)

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14 Mar 2010, 14:52
1
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Question Stats:

64% (01:39) correct 36% (01:35) wrong based on 75 sessions

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During the practice test I ran into the question. I disagree with the answer choice. What is your thoughts?

Company Spokesperson: This year, more than 70% of the guests who stayed with us over the past summer are planning to return to our resorts for a summer vacation. Therefore, I believe that we are well-positioned for another strong and profitable quarter.

Industry Analyst: This is not necessarily true. Nearly three quarters of the company’s profits come from the attendance of its theme parks located at its major resorts, and it is not certain how this segment will perform this summer.
Which of the following statements, if true, would support the criticism of the Industry Analyst?

A. The company’s management possesses more accurate financial information than is accessible to industry analysts.
B. The industry analyst represents an independent investment firm, which is not affiliated with the company.
C. The company’s revenues and profits have more than doubled over the past 3 years.
D. Because of the seasonality in the vacation travel and theme park attendance, summer is the most important season for the firm’s operations, accounting for over half of the firm's annual profits.
E. The vast majority of guests who visit the company’s resorts attend its theme parks only once, usually during their first week of stay.

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Intern
Joined: 08 Jun 2009
Posts: 24
Location: Newport Beach, CA

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14 Mar 2010, 15:39
IMO E.

OA?
Director
Joined: 17 Feb 2010
Posts: 995

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15 Mar 2010, 07:49
1
my pick is (E) too.

Company Spokesperson: This year, more than 70% of the guests who stayed with us over the past summer are planning to return to our resorts for a summer vacation. Therefore, I believe that we are well-positioned for another strong and profitable quarter.

Industry Analyst: This is not necessarily true. Nearly three quarters of the company’s profits come from the attendance of its theme parks located at its major resorts, and it is not certain how this segment will perform this summer.
Which of the following statements, if true, would support the criticism of the Industry Analyst?

A. The company’s management possesses more accurate financial information than is accessible to industry analysts.
B. The industry analyst represents an independent investment firm, which is not affiliated with the company.
C. The company’s revenues and profits have more than doubled over the past 3 years.
D. Because of the seasonality in the vacation travel and theme park attendance, summer is the most important season for the firm’s operations, accounting for over half of the firm's annual profits.
E. The vast majority of guests who visit the company’s resorts attend its theme parks only once, usually during their first week of stay.
During the practice test I ran into the question. I disagree with the answer choice. What is your thoughts?

Company Spokesperson: This year, more than 70% of the guests who stayed with us over the past summer are planning to return to our resorts for a summer vacation. Therefore, I believe that we are well-positioned for another strong and profitable quarter.

Industry Analyst: This is not necessarily true. Nearly three quarters of the company’s profits come from the attendance of its theme parks located at its major resorts, and it is not certain how this segment will perform this summer.

Which of the following statements, if true, would support the criticism of the Industry Analyst?

A. The company’s management possesses more accurate financial information than is accessible to industry analysts.
>>> this goes against Industry Analyst
B. The industry analyst represents an independent investment firm, which is not affiliated with the company.
>>> i was leaning towards this option but when compared with E, this option appears weak to me
C. The company’s revenues and profits have more than doubled over the past 3 years.
>>> makes no sense
D. Because of the seasonality in the vacation travel and theme park attendance, summer is the most important season for the firm’s operations, accounting for over half of the firm's annual profits.
>>> makes no sense
E. The vast majority of guests who visit the company’s resorts attend its theme parks only once, usually during their first week of stay.
>>> 75% of company's profits come from theme parks and since the guests who visit the resort attend the theme park only once during their first week of stay, that means the guests who are returning to the resort must have alread visited the theme park and will not go there again. Hence lowering the profits which is in line with Industry Analyst's criticism.
Intern
Joined: 29 Oct 2009
Posts: 23

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15 Mar 2010, 08:19
E for me as well . pls post OA.
Manager
Joined: 17 Jan 2010
Posts: 125
Concentration: General Management, Strategy
GPA: 3.78
WE: Engineering (Manufacturing)

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15 Mar 2010, 09:20
uglynakedguy wrote:
E for me as well . pls post OA.

The OA is E. I have a problem with a statement E as it does not specify weather the customers attend the theme park during their first week of stay only the first time at the resort or do they attend a theme park first week of stay every time they come to the resort.
Manager
Joined: 13 Dec 2009
Posts: 219

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15 Mar 2010, 12:38
alexBLR wrote:
uglynakedguy wrote:
E for me as well . pls post OA.

The OA is E. I have a problem with a statement E as it does not specify weather the customers attend the theme park during their first week of stay only the first time at the resort or do they attend a theme park first week of stay every time they come to the resort.

E. The vast majority of guests who visit the company’s resorts attend its theme parks only once, usually during their first week of stay.
Whether they come for the first time or come on a repeat visit the answer tells us that the vast majority visit its theme parks only once.
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Affiliations: ManhattanGMAT
Joined: 21 Jan 2010
Posts: 333
Location: San Francisco

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18 Mar 2010, 17:55
Hey alexBLR,

Since this is one of our questions, I thought I'd weigh in. I see what you're saying, and in the end, there's no way to know for sure what's happening. However, E says the majority of people who come to the resorts only go to the parks once. Because it doesn't specify whether that's the first time or every time, we have to assume it's every time (we would only assume otherwise if it specified).

Also, don't forget the sad truth of Critical Reasoning: you're picking the best answer, not the perfect answer. A great explanation of why all the other answer choices are wrong has already been given, so refer to that for further explanation.

Hope that helps!

-t
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Senior Manager
Joined: 25 May 2010
Posts: 295
Location: United States
Concentration: Strategy, Finance
Schools: CBS '14 (A)
GMAT 1: 590 Q47 V25
GMAT 2: 560 Q47 V20
GMAT 3: 600 Q47 V25
GMAT 4: 680 Q49 V34

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06 Feb 2011, 20:26
Bumping this thread to get better explanation.

CS: returning customers for summer vacation-> strong and profitable quarter
IA- disagrees and points out the dependance on the fact that visitors come for theme parks

We have to choose an option supporting IA i.e. showing the importance of summer season and theme parks

D: Show the importance of summer and theme parks accounting for more than half of their profits.

E: guests attend theme park first day of the visit. Doesn't it mean than guests visit theme park first day and that theme park is not that MUCH important for rest of the their stay and they enjoy resort for the rest.

I chose D but OA is E. Can some one correct my reasoning?

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

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05 Apr 2019, 11:43
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: MGMAT   [#permalink] 05 Apr 2019, 11:43
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