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

It is currently 15 Oct 2019, 16:51

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

Most financial analysts predicted that sales of the new product of

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

Hide Tags

Find Similar Topics 
Intern
Intern
avatar
Joined: 20 Dec 2014
Posts: 30
Most financial analysts predicted that sales of the new product of  [#permalink]

Show Tags

New post 16 Aug 2016, 04:10
4
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

71% (01:32) correct 29% (01:45) wrong based on 260 sessions

HideShow timer Statistics

Most financial analysts predicted that sales of the new product of Kellner, Inc. would be a total failure and revenues from its sales would not be sufficient to cover expenditures on the product’s development. However, even initial sales of the product were sufficient not only to cover development costs but also to bring in some profits for Kellner, Inc.
Which of the following, if true, would best help to explain the contradiction above?

(A) Some changes to the new product were made just before it was released into sale.
(B) In order to prevent information leakage, Kellner had not provided financial analysts with some product information necessary for accurate prediction.
(C) At the time the financial analysts made their prediction, the product was not yet completely developed.
(D) The product was certified by the most famous and trustworthy chemical laboratories.
(E) Kellner has a long-time reputation for producing products of high quality.


Source: OptimusPrep
Retired Moderator
avatar
P
Joined: 04 Aug 2016
Posts: 479
Location: India
Concentration: Leadership, Strategy
GPA: 4
WE: Engineering (Telecommunications)
Re: Most financial analysts predicted that sales of the new product of  [#permalink]

Show Tags

New post 16 Aug 2016, 05:32
Stn wrote:
Most financial analysts predicted that sales of the new product of Kellner, Inc. would be a total failure and revenues from its sales would not be sufficient to cover expenditures on the product’s development. However, even initial sales of the product were sufficient not only to cover development costs but also to bring in some profits for Kellner, Inc.
Which of the following, if true, would best help to explain the contradiction above?

(A) Some changes to the new product were made just before it was released into sale.
(B) In order to prevent information leakage, Kellner had not provided financial analysts with some product information necessary for accurate prediction.
(C) At the time the financial analysts made their prediction, the product was not yet completely developed.
(D) The product was certified by the most famous and trustworthy chemical laboratories.
(E) Kellner has a long-time reputation for producing products of high quality.


Source: OptimusPrep



So for me - it boiled down to B and C. But wording in B worked for me since it states that piece of info necessary to make accurate information was not provided to the FA and hence they were incorrect in their prediction.


Anyone up for discussion?
Intern
Intern
avatar
Joined: 20 Dec 2014
Posts: 30
Re: Most financial analysts predicted that sales of the new product of  [#permalink]

Show Tags

New post 16 Aug 2016, 07:24
I see one problem with B and will explain, please correct me if this logic is wrong.

The prediction says that "sales would not be sufficient to cover expenditures on the product’s development".
But in reality it turned out that "even initial sales of the product were sufficient not only to cover development costs but also to bring in some profits for Kellner, Inc."

Here we have a significant difference between what the prediction said and what the reality was.
When I solved this questions I was thinking that the difference between prediction and reality is that big that it can not be because of accuracy. I see accuracy like a fine tuning rather than a totally different result. I mean, if you don't have accuracy the prediction will be wrong but still somehow around reality, not that far away as in this example. Thus, I eliminated answer B.
Intern
Intern
avatar
Joined: 17 Apr 2012
Posts: 14
Location: United States
WE: Information Technology (Computer Software)
GMAT ToolKit User
Re: Most financial analysts predicted that sales of the new product of  [#permalink]

Show Tags

New post 16 Aug 2016, 15:04
1
For me it was between B and C.

B says, FA was not provided with product detail and this resulted in incorrect prediction. So if this is true, will explain why there is a contradiction. SO LET KEEP THIS.

Now C says, FA was not provided with complete product. But there is no assumption that FA need complete product to do prediction. Outside world it might b true, but in this context, C doesnt say reason for the contradict.
Manager
Manager
avatar
S
Joined: 21 Jan 2016
Posts: 77
Location: India
GMAT 1: 670 Q50 V30
WE: Engineering (Computer Software)
Re: Most financial analysts predicted that sales of the new product of  [#permalink]

Show Tags

New post 22 Dec 2016, 09:58
Stn wrote:
Most financial analysts predicted that sales of the new product of Kellner, Inc. would be a total failure and revenues from its sales would not be sufficient to cover expenditures on the product’s development. However, even initial sales of the product were sufficient not only to cover development costs but also to bring in some profits for Kellner, Inc.
Which of the following, if true, would best help to explain the contradiction above?

(A) Some changes to the new product were made just before it was released into sale.
(B) In order to prevent information leakage, Kellner had not provided financial analysts with some product information necessary for accurate prediction.
(C) At the time the financial analysts made their prediction, the product was not yet completely developed.
(D) The product was certified by the most famous and trustworthy chemical laboratories.
(E) Kellner has a long-time reputation for producing products of high quality.


Source: OptimusPrep

I considered A as answer as it mentions that some changes were made in the product, so the earlier product which analysts analysed was not the same as released.
I thought B should not be a choice here as we are trying to hurt a premise.
Retired Moderator
User avatar
S
Joined: 14 Dec 2013
Posts: 2861
Location: Germany
Schools: German MBA
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Reviews Badge
Most financial analysts predicted that sales of the new product of  [#permalink]

Show Tags

New post 23 Dec 2016, 23:39
1
ankujgupta wrote:
Stn wrote:
Most financial analysts predicted that sales of the new product of Kellner, Inc. would be a total failure and revenues from its sales would not be sufficient to cover expenditures on the product’s development. However, even initial sales of the product were sufficient not only to cover development costs but also to bring in some profits for Kellner, Inc.
Which of the following, if true, would best help to explain the contradiction above?

(A) Some changes to the new product were made just before it was released into sale.
(B) In order to prevent information leakage, Kellner had not provided financial analysts with some product information necessary for accurate prediction.
(C) At the time the financial analysts made their prediction, the product was not yet completely developed.
(D) The product was certified by the most famous and trustworthy chemical laboratories.
(E) Kellner has a long-time reputation for producing products of high quality.


Source: OptimusPrep

I considered A as answer as it mentions that some changes were made in the product, so the earlier product which analysts analysed was not the same as released.
I thought B should not be a choice here as we are trying to hurt a premise.


Both A and B could explain the discrepancy. The underlying reason for the discrepancy between the prediction and the result could be explained by the fact that the prediction was based on a different product than that finally released.

Option A directly states that the prediction was based on a different product than that finally released. (assuming that the prediction was made before the final changes, and the analysts were not aware that there would be changes just before the release.)

Option B may imply that the analysts had based their prediction on a product that was not identical to that finally released (some information about the product was hidden from the analysts). Thus option B could as well be a valid answer.

However since option A requires some additional assumption, option B is better than A.
Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 5897
Re: Most financial analysts predicted that sales of the new product of  [#permalink]

Show Tags

New post 26 Jan 2019, 11:06
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).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Club Bot
Re: Most financial analysts predicted that sales of the new product of   [#permalink] 26 Jan 2019, 11:06
Display posts from previous: Sort by

Most financial analysts predicted that sales of the new product of

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





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