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GMAT Club World Cup 2022 (DAY 2): HiScience is planning to use 9% of
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12 Jul 2022, 08:00
12 Jul 2022, 08:00
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Difficulty:
25%
(medium)
Question Stats:
77% (02:05) correct
23%
(02:27)
wrong
based on 538
sessions
HiScience is planning to use 9% of its total construction budget to build a new research facility. Although HiScience typically contracts with Build-It Inc on projects of this size, this project will need to be awarded to WeConstruct. A new HiScience policy states that no single company can have simultaneous open contracts with a total value that is more than half of HiScience’s total construction budget. Build-It Inc already holds contracts comprising 44% of HiScience’s construction budget.
Which of the following is an assumption required in order to conclude that WeConstruct will be awarded the contract?
(A) Build-It Inc and WeConstruct are not the only companies who are competing for this contract.
(B) HiScience has a long history with Build-It Inc and WeConstruct and has relied on them extensively for past projects.
(C) Build-It Inc will not complete any currently open contracts worth at least 4% of HiScience’s total construction budget before HiScience awards the contract.
(D) Only those companies with whom HiScience has had a prior relationship were allowed to submit bids for this construction contract.
(E) WeConstruct has done previous work on this scale in the municipality where this new office will be located and is familiar with the legal requirements for construction work in that municipality.
Which of the following is an assumption required in order to conclude that WeConstruct will be awarded the contract?
(A) Build-It Inc and WeConstruct are not the only companies who are competing for this contract.
(B) HiScience has a long history with Build-It Inc and WeConstruct and has relied on them extensively for past projects.
(C) Build-It Inc will not complete any currently open contracts worth at least 4% of HiScience’s total construction budget before HiScience awards the contract.
(D) Only those companies with whom HiScience has had a prior relationship were allowed to submit bids for this construction contract.
(E) WeConstruct has done previous work on this scale in the municipality where this new office will be located and is familiar with the legal requirements for construction work in that municipality.
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Re: GMAT Club World Cup 2022 (DAY 2): HiScience is planning to use 9% of
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12 Jul 2022, 10:30
12 Jul 2022, 10:30
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Expert Reply
Bunuel wrote:
HiScience is planning to use 9% of its total construction budget to build a new research facility. Although HiScience typically contracts with Build-It Inc on projects of this size, this project will need to be awarded to WeConstruct. A new HiScience policy states that no single company can have simultaneous open contracts with a total value that is more than half of HiScience’s total construction budget. Build-It Inc already holds contracts comprising 44% of HiScience’s construction budget.
Which of the following is an assumption required in order to conclude that WeConstruct will be awarded the contract?
(A) Build-It Inc and WeConstruct are not the only companies who are competing for this contract.
(B) HiScience has a long history with Build-It Inc and WeConstruct and has relied on them extensively for past projects.
(C) Build-It Inc will not complete any currently open contracts worth at least 4% of HiScience’s total construction budget before HiScience awards the contract.
(D) Only those companies with whom HiScience has had a prior relationship were allowed to submit bids for this construction contract.
(E) WeConstruct has done previous work on this scale in the municipality where this new office will be located and is familiar with the legal requirements for construction work in that municipality.
Which of the following is an assumption required in order to conclude that WeConstruct will be awarded the contract?
(A) Build-It Inc and WeConstruct are not the only companies who are competing for this contract.
(B) HiScience has a long history with Build-It Inc and WeConstruct and has relied on them extensively for past projects.
(C) Build-It Inc will not complete any currently open contracts worth at least 4% of HiScience’s total construction budget before HiScience awards the contract.
(D) Only those companies with whom HiScience has had a prior relationship were allowed to submit bids for this construction contract.
(E) WeConstruct has done previous work on this scale in the municipality where this new office will be located and is familiar with the legal requirements for construction work in that municipality.
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Manhattan Prep Official Explanation:
Step 1: Identify the Question
The words an assumption required indicate that this is a Find the Assumption question.
Step 2: Deconstruct the Argument
The second sentence contains the author’s prediction: This project will need to be awarded to WeConstruct. However, there is a counterpoint in this same sentence: HiScience typically contracts with Build-it Inc on projects of this size. So why would HiScience not award this project to Build-It Inc? Build-It Inc already has projects worth 44% of HiScience’s construction budget; adding this project would mean that Build-It Inc would have 53% of the budget. That would conflict with HiScience’s new policy: no single company can have simultaneous projects totaling more than half, or 50%, of HiScience’s construction budget.
Step 3: Pause and State the Goal
For Assumption questions, the goal is to find an assumption needed for the author’s argument to be valid. This argument has a couple of questionable assumptions. What if there are other companies competing for this construction project besides Build-It Inc. and WeConstruct? What if something changes the percentage of the construction budget currently allocated to Build-It Inc?
Step 4: Work From Wrong to Right
(A) This choice addresses the assumption that Build-It and WeConstruct are the only two companies competing for this contract. If these two are not the only companies, the conclusion is more questionable: HiScience could award the contract to WeConstruct or to a third company. This choice actually weakens the argument.
(B) This choice provides more information about why HiScience has typically chosen BuildIt in the past.This choice does not, however, address either the assumption that these are the only two companies competing for this contract or the assumption that Build-It will not decrease the value of its current contracts in some way.
(C) CORRECT. If Build-It Inc can complete contracts worth at least 4% of Acme’s budget before the new contract is awarded, then Build-It’s share will drop to 40%. Adding the 9% from the new construction project would no longer put Build-It’s total contracts above 50%.
(D) At first glance, this choice appears to address the assumption that Build-It Inc and WeConstruct are the only two companies competing for this contract. However, this choice only specifies companies with whom HiScience had a prior relationship. HiScience may have had prior relationships with many companies, not just Build-It and WeConstruct.
(E) Although this choice could arguably strengthen the conclusion, as it makes WeConstruct a more competitive option, this answer choice is not correct. A correct Assumption answer has to reflect something the author must assume in order to draw the conclusion. It is not the case that WeConstruct must have these specific advantages in order to win the contract.
General Discussion
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Re: GMAT Club World Cup 2022 (DAY 2): HiScience is planning to use 9% of
[#permalink]
12 Jul 2022, 08:24
12 Jul 2022, 08:24
2
Kudos
Quote:
HiScience is planning to use 9% of its total construction budget to build a new research facility. Although HiScience typically contracts with Build-It Inc on projects of this size, this project will need to be awarded to WeConstruct. A new HiScience policy states that no single company can have simultaneous open contracts with a total value that is more than half of HiScience’s total construction budget. Build-It Inc already holds contracts comprising 44% of HiScience’s construction budget.
Which of the following is an assumption required in order to conclude that WeConstruct will be awarded the contract?
(A) Build-It Inc and WeConstruct are not the only companies who are competing for this contract.
(B) HiScience has a long history with Build-It Inc and WeConstruct and has relied on them extensively for past projects.
(C) Build-It Inc will not complete any currently open contracts worth at least 4% of HiScience’s total construction budget before HiScience awards the contract.
(D) Only those companies with whom HiScience has had a prior relationship were allowed to submit bids for this construction contract.
(E) WeConstruct has done previous work on this scale in the municipality where this new office will be located and is familiar with the legal requirements for construction work in that municipality.
Which of the following is an assumption required in order to conclude that WeConstruct will be awarded the contract?
(A) Build-It Inc and WeConstruct are not the only companies who are competing for this contract.
(B) HiScience has a long history with Build-It Inc and WeConstruct and has relied on them extensively for past projects.
(C) Build-It Inc will not complete any currently open contracts worth at least 4% of HiScience’s total construction budget before HiScience awards the contract.
(D) Only those companies with whom HiScience has had a prior relationship were allowed to submit bids for this construction contract.
(E) WeConstruct has done previous work on this scale in the municipality where this new office will be located and is familiar with the legal requirements for construction work in that municipality.
Why is HiScience giving the contract away to a new company instead of just going with its usual vendor?
Because of a new policy.
What does the policy state?
No single company can have simultaneous open contracts with a total value that is more than half of HiScience’s total construction budget
What's the value of contracts held by Built-In Inc at the moment?
44% of HiScience’s construction budget
How many of them are open?
We don't know
So, why is HiScience not awarding the new contract, i.e., 9% of it's research budget to Built-In?
Probably because (x+9)% would be greater than half of its construction budget and that would violate the policy.
x = % of construction budget allocated to number of open contracts Built-In Inc currently has
Only option C talks about this. If we negate C, the conclusion falls apart. Hence, C is the right answer
