It is currently 21 Oct 2017, 01:45

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Now is an excellent time to invest in the catering business.

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Intern
Joined: 08 Oct 2010
Posts: 26

Kudos [?]: 9 [0], given: 0

Now is an excellent time to invest in the catering business. [#permalink]

### Show Tags

25 Dec 2010, 12:02
00:00

Difficulty:

(N/A)

Question Stats:

43% (00:16) correct 57% (01:22) wrong based on 17 sessions

### HideShow timer Statistics

Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.

Kudos [?]: 9 [0], given: 0

Manager
Joined: 20 Dec 2010
Posts: 168

Kudos [?]: 62 [0], given: 5

Location: Stockholm, Sweden
Re: Catering business [#permalink]

### Show Tags

25 Dec 2010, 12:19
E is definitely more straightforward than B and therefore my answer.
OA
[Reveal] Spoiler:
E

Last edited by Mackieman on 25 Dec 2010, 13:24, edited 2 times in total.

Kudos [?]: 62 [0], given: 5

Intern
Joined: 25 Dec 2010
Posts: 8

Kudos [?]: 1 [0], given: 2

Location: USA
WE 1: 10
Re: Catering business [#permalink]

### Show Tags

25 Dec 2010, 13:14
suhi wrote:
Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.

E is the best answer. Only 35% (half of 70% of the readers) are likely have a catered wedding reception. But current supply rate is 55% of all the weddings. More supply than demand. So bad investment advice. Also the Weddings magazine does not necessarily cover 100% of the couples who had wed last year or who are going to wed the following year. E, the best choice. Pretty straight forward , I think. Any thoughts??
_________________

KUDOS if it helped!!
_______________________________________________________________________________________________________________
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not" - Thomas Jefferson
"You don't know the limits if you haven't crossed it"

Kudos [?]: 1 [0], given: 2

Intern
Joined: 08 Oct 2010
Posts: 26

Kudos [?]: 9 [0], given: 0

Re: Catering business [#permalink]

### Show Tags

25 Dec 2010, 15:43
E: Only half of those who say they want a catered wedding reception actually have one. this means 35% have the desire of catering business. So for this 35% the likelihood of getting catering order per person increases compared with the whole 70%. therefore in such case, the investment should be more attractive..thus, the invst advice can not be undermined.

B: Approximately a quarter of all weddings take place without a reception. in this situation, the likelihood decreases since demand to get orders are higher than that actually can be obtained. so invesment advice is undermined.

Thus B is the ans. is my explanation Ok?

please post the OA whoever has got the actual source of this question.

Kudos [?]: 9 [0], given: 0

Intern
Joined: 25 Dec 2010
Posts: 8

Kudos [?]: 1 [0], given: 2

Location: USA
WE 1: 10
Re: Catering business [#permalink]

### Show Tags

25 Dec 2010, 20:31
suhi wrote:
E: Only half of those who say they want a catered wedding reception actually have one. this means 35% have the desire of catering business. So for this 35% the likelihood of getting catering order per person increases compared with the whole 70%. therefore in such case, the investment should be more attractive..thus, the invst advice can not be undermined.

B: Approximately a quarter of all weddings take place without a reception. in this situation, the likelihood decreases since demand to get orders are higher than that actually can be obtained. so invesment advice is undermined.

Thus B is the ans. is my explanation Ok?

please post the OA whoever has got the actual source of this question.

For choice E, see my comments below.

Assuming 10% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 10% of "soon to be married's"
(eg) No. of "soon to be married's" = 10% x 1000 = 100
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 100 = 70
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 70 = 35
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 35. SO THIS IS BAD ADVICE.

Assuming 90% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 90% of "soon to be married's"
(eg) No. of "soon to be married's" = 90% x 1000 = 900
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 900 = 630
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 630 = 315
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 315. SO THIS IS BAD ADVICE.

This is how I worked it. Let me know if you feel this is incorrect.

Thanks

_________________

KUDOS if it helped!!
_______________________________________________________________________________________________________________
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not" - Thomas Jefferson
"You don't know the limits if you haven't crossed it"

Kudos [?]: 1 [0], given: 2

Manager
Status: Still Struggling
Joined: 03 Nov 2010
Posts: 136

Kudos [?]: 102 [0], given: 8

Location: India
GMAT Date: 10-15-2011
GPA: 3.71
WE: Information Technology (Computer Software)
Re: Catering business [#permalink]

### Show Tags

25 Dec 2010, 22:20
suhi wrote:
Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.

I would like to go with B.

As we know A,C,D are irrelevant. So, we are only left with B and E.
The problem with E is that it's not mentioned in the statement as to why only half of the marriages are the catered one. Maybe, the people who say they want catering might not be actually able to get it because of lack of caterers. So, this statement can actually strengthen the conclusion that since the present number of caterers are only able to serve half of the required marriages, investing in this business would be a good option because of its high demand.

Hence, we are only left with Option B.

Experts, pls let me know if i stand wrong.
Thnx.
_________________

Appreciation in KUDOS please!
Knewton Free Test 10/03 - 710 (49/37)
Princeton Free Test 10/08 - 610 (44/31)
Kaplan Test 1- 10/10 - 630
Veritas Prep- 10/11 - 630 (42/37)
MGMAT 1 - 10/12 - 680 (45/34)

Kudos [?]: 102 [0], given: 8

Intern
Joined: 08 Oct 2010
Posts: 26

Kudos [?]: 9 [0], given: 0

Re: Catering business [#permalink]

### Show Tags

25 Dec 2010, 22:48
Dravidian wrote:
suhi wrote:
E: Only half of those who say they want a catered wedding reception actually have one. this means 35% have the desire of catering business. So for this 35% the likelihood of getting catering order per person increases compared with the whole 70%. therefore in such case, the investment should be more attractive..thus, the invst advice can not be undermined.

B: Approximately a quarter of all weddings take place without a reception. in this situation, the likelihood decreases since demand to get orders are higher than that actually can be obtained. so invesment advice is undermined.

Thus B is the ans. is my explanation Ok?

please post the OA whoever has got the actual source of this question.

For choice E, see my comments below.

Assuming 10% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 10% of "soon to be married's"
(eg) No. of "soon to be married's" = 10% x 1000 = 100
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 100 = 70
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 70 = 35
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 35. SO THIS IS BAD ADVICE.

Assuming 90% magazine readership:

Total no. of weddings ("soon to be married's") that year = 1000
(eg) Wedding magazine readership = 90% of "soon to be married's"
(eg) No. of "soon to be married's" = 90% x 1000 = 900
% of "magazine readers" who want a catered reception = 70%
No. of "magazine readers" who want a catered reception = 70% x 900 = 630
ONLY 50% WHO SAY THEY WANT ACTUALLY HAVE ONE = 50% x 630 = 315
Current capacity to cater weddings likely to occur each year = 55%
No. of weddings that current capacity can cater = 55% x 1000 = 550

CURRENT CAPACITY OF 550 IS FAR GREATER THAN THE NO. OF "MAGAZINE READERS" WHO WANT A CATERED RECEPTION OF 315. SO THIS IS BAD ADVICE.

This is how I worked it. Let me know if you feel this is incorrect.

Thanks

thanks .now get the problem. i got the question in a wrong way.

Kudos [?]: 9 [0], given: 0

Intern
Joined: 25 Dec 2010
Posts: 8

Kudos [?]: 1 [0], given: 2

Location: USA
WE 1: 10
Re: Catering business [#permalink]

### Show Tags

26 Dec 2010, 20:03
krishnasty wrote:
suhi wrote:
Now is an excellent time to invest in the catering business. A survey conducted by Weddings magazine found that 70 percent of the magazine's readers want a catered wedding reception. An analysis of the catering industry, however, shows that the current number of caterers can serve only 55 percent of the weddings likely to occur each year.

2.Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) The average wedding reception involves between 50 and 100 guests.
(b) Approximately a quarter of all weddings take place without a reception.
(C) Approximately a quarter of all weddings and their associated receptions are paid for by the couples themselves.
(D) Only half of all catered wedding receptions include sit-down meals.
(E) Only half of those who say they want a catered wedding reception actually have one.

I do not have the OA. am confused with B and E. would appreciate your explanation and if anyone knows the OA post it here.

I would like to go with B.

As we know A,C,D are irrelevant. So, we are only left with B and E.
The problem with E is that it's not mentioned in the statement as to why only half of the marriages are the catered one. Maybe, the people who say they want catering might not be actually able to get it because of lack of caterers. So, this statement can actually strengthen the conclusion that since the present number of caterers are only able to serve half of the required marriages, investing in this business would be a good option because of its high demand.

Hence, we are only left with Option B.

Experts, pls let me know if i stand wrong.
Thnx.

Since the question reads - "Which of the following, if true, would....." - each answer choice should be taken as true (part of the passage). If you look at it that way then the E would be the best choice.
_________________

KUDOS if it helped!!
_______________________________________________________________________________________________________________
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not" - Thomas Jefferson
"You don't know the limits if you haven't crossed it"

Kudos [?]: 1 [0], given: 2

Intern
Joined: 27 Dec 2010
Posts: 5

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

Re: Catering business [#permalink]

### Show Tags

27 Dec 2010, 15:01
OA please

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

Intern
Joined: 01 Oct 2009
Posts: 9

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

Re: Catering business [#permalink]

### Show Tags

04 Jan 2011, 08:29
There are other options available for Catering in las vegas ,,, But i want a faithfull one for mine sis wedding in Las Vegas Weddings

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

Re: Catering business   [#permalink] 04 Jan 2011, 08:29
Display posts from previous: Sort by

# Now is an excellent time to invest in the catering business.

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

 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®.