Perhaps the most important goal of any business manager is to articula

Question

Perhaps the most important goal of any business manager is to articulate a clear business model, one that is predicated on a cause-and-effect theory. This theory should explicate how a business can achieve long-term success through the implementation of specific strategies. However, recent research indicates that very few managers are aware of the role of causal models in successful business plans. Thus, while a good number of companies keep track of performance measures, very few of the managers in these businesses attempt to understand the causal mechanisms that produce such measures. Instead of carefully exploring these underlying causal factors, many managers reported that their business decisions were guided by preconceived notions of what is important to customers, shareholders, and employees. Furthermore, managers, despite their lack of understanding of the connections between performance measures and their drivers, often claimed that no investigation was necessary because such links were self-evident.

If business managers more readily adopted cause-and-effect models into their business plans, experimental data indicates that they may be able to increase their businesses performance measures. Managers who were asked to analyze a set of data and then prompted with the causal mechanism underlying it were better able to interpret and exploit the data than managers who received no such prompting. Even when managers were prompted with an invalid causal model, they still were better able to interpret the data than the control group.

If business managers more readily adopted cause-and-effect models into their business plans, experimental data indicates that they may be able to increase their businesses performance measures. Managers who were asked to analyze a set of data and then prompted with the causal mechanism underlying it were better able to interpret and exploit the data than managers who received no such prompting. Even when managers were prompted with an invalid causal model, they still were better able to interpret the data than the control group.    1 
 1. The primary purpose of the passage is to

A. advocate for a particular way of articulating business plans
B. assert that understanding causal mechanisms is essential for successful managers
C. explain how to create a viable business model for managers to follow
D. direct business analysts toward an understudied phenomenon
E. criticize the behavior of typical business managers

2 
 2. Which of the following assumptions underlies the results of the experiment detailed in the final paragraph?

A. The managers in the study were previously unaware of the role of causal mechanisms.
B. None of the participants in the study were managers of unsuccessful companies.
C. Invalid causal models are just as beneficial to managers as are valid causal models.
D. Managers in the experimental group were able to attribute their increased skill at interpreting data to causal mechanisms.
E. An increased ability to interpret and exploit data can lead to gains in performance measures.

3 
 3. The second paragraph serves to

A. provide empirical confirmation of an earlier assertion
B. suggest further experimental tests of a hypothesis
C. introduce an alternative theory to be explored
D. prove a point introduced in the previous paragraph
E. demonstrate the superiority of a viewpoint

GMAT Club Reading Comprehension (RC) Quiz-I 2024   
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 Passage # 06  |  Date: 03 March 2024
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Oppenheimer1945 · Answer

If business managers more readily adopted cause-and-effect models into their business plans, experimental data indicates that they may be able to increase their businesses performance measures.

1. The primary purpose of the passage is to
A. advocate for a particular way of articulating business plans (Author is advocating to use Causal Business Model)... Tempting but not the Primary Purpose
 B. assert that understanding causal mechanisms is essential for successful managers (understanding is required for implementation as per author)...True 
C. explain how to create a viable business model for managers to follow (creating is not discussed here)
D. direct business analysts toward an understudied phenomenon (irrelevant)
E. criticize the behavior of typical business managers (author is not critical here)

If business managers more readily adopted cause-and-effect models into their business plans, experimental data indicates that they may be able to increase their businesses performance measures.

2. Which of the following assumptions underlies the results of the experiment detailed in the final paragraph?

A. The managers in the study were previously unaware of the role of causal mechanisms.
B. None of the participants in the study were managers of unsuccessful companies.
C. Invalid causal models are just as beneficial to managers as are valid causal models.
D. Managers in the experimental group were able to attribute their increased skill at interpreting data to causal mechanisms.
 E. An increased ability to interpret and exploit data can lead to gains in performance measures. (alligned with above lines)

3. The second paragraph serves to
 A. provide empirical confirmation of an earlier assertion (True... Author is validating the assertion stated previously) 
B. suggest further experimental tests of a hypothesis (no further experiments are discussed)
C. introduce an alternative theory to be explored (no alternate theory is discussed)
D. prove a point introduced in the previous paragraph (prove a point is not done. Author simply wants to validate his assertion)
E. demonstrate the superiority of a viewpoint (No demonstration of viewpoint is done)

missionmba2025 · Answer

1. The primary purpose of the passage is to

A. advocate for a particular way of articulating business plans

This is correct. The author advocates the cause-and-effect theory

B. assert that understanding causal mechanisms is essential for successful managers

The author doesn't believe that understanding causal mechanisms is essential for successful managers. The second paragraph infact mentions that " If business managers more readily adopted cause-and-effect models into their business plans, experimental data indicates that  they may be able  to increase their businesses performance measures. ". Hence absolute certainity has not been expressed in the passage.

C. explain how to create a viable business model for managers to follow

While the author propogates the causal model, the author doesn't explains how to create a full proof business model. Hence, this statement is not correct.

D. direct business analysts toward an understudied phenomenon

We know that the managers are perhaps unaware of the model. However we don't know if the causal model is understudied. Hence, this option doesn't resonates with the information given in the passage.

E. criticize the behavior of typical business managers

This is not the primaray purpose. The critcism is limited to the first paragraph of the passage.

2. Which of the following assumptions underlies the results of the experiment detailed in the final paragraph?

The answer to this question lies in this line " Managers who were asked to analyze a set of data and then prompted with the causal mechanism underlying it were better able to interpret and exploit the data than managers who received no such prompting. " Based on the results of the experiments the author concludes that " experimental data indicates that they may be able to increase their businesses performance measures ". Hence the author assumes that the if a manager is better able to interpret and explot data the ability will lead to the increase in thier business performace measures.

A. The managers in the study were previously unaware of the role of causal mechanisms.

This is not required. May be the managers were aware but never applied the causal mechanisms.

B. None of the participants in the study were managers of unsuccessful companies.

This is a bit extreme. Also, not a valid assumption for the conclusion to hold true.

C. Invalid causal models are just as beneficial to managers as are valid causal models.

The reference to invalid causal model is to strengthen the conclusion. Hence, option C is not an assumption.

D. Managers in the experimental group were able to attribute their increased skill at interpreting data to causal mechanisms.

While this is a trickly option, this cannot be an assumption. The opionions held by the managers is not needed for the author to form his own conclusion. Eliminate D .

E. An increased ability to interpret and exploit data can lead to gains in performance measures.

This is correct. The author does believe that an increase in ability to interpret and exploit data can lead to performance gains. Hence, this is an assumption to the conclusion.

3. The second paragraph serves to

The second paragraph build on the idea presented  in the first paragraph and presents an experiment to support cause-and-effect theory.

A. provide empirical confirmation of an earlier assertion

This is correct. The purpose of the second paragraph is to support statement made in the first paragraph.

B. suggest further experimental tests of a hypothesis

Incorrect. No suggestion on the further experimental tests has been made.

C. introduce an alternative theory to be explored

Incorrect. The second paragraph doesn't introduce any alternate theory.

D. prove a point introduced in the previous paragraph

The second paragraph doesn't aim to prove anything. The passage lends support to the idea of causal relationship. Compared with A, this option is not correct.

E. criticize the behavior of typical business managers

Incorrect. The second paragraph doesn't lend any criticism to the managers.

Answers 
1. A
2. E
3. A

Sss678 · Answer

Q1. The primary purpose of the passage is to 
My answer is B)
 B. assert that understanding causal mechanisms is essential for successful managers 
The passage supports and illustrates the method of understanding and using causal models by business managers to achieve long-term success in businesses.

A. advocate for a particular way of articulating business plans
The passage is centred around managers utilising the causal model to achieve success for the business. It does put some importance on a particular way of articulating business plans but more on the method and model used by the business managers

C. explain how to create a viable business model for managers to follow
It does not explain any procedure to create business model rather utilising the causal model by the managers

D. direct business analysts toward an understudied phenomenon
The passage is not directed toward business analysts but towards business managers.

E. criticize the behavior of typical business managers
The author analyzes the current situation and advises the business managers to adopt a particular method. He does not criticize them at any point.

Q2. Which of the following assumptions underlies the results of the experiment detailed in the final paragraph? 
My answer is E)
 E. An increased ability to interpret and exploit data can lead to gains in performance measures. 
The assumption that the ability to interpret and exploit data can lead to gains in performance measures can be inferred from the follwing line-"Even when managers were prompted with an invalid causal model, they still were better able to interpret the data than the control group." If this assumption is neagted , then the conclusion -the business managers may be able to increase their business performance measures if they readily adopt the cause-and-effect models- will break down.

A. The managers in the study were previously unaware of the role of causal mechanisms.
It is not a valid assumption since its neagtion does not lead to the breakdown of the conclusion. Even if the managers were aware if the role, the results might not change.

B. None of the participants in the study were managers of unsuccessful companies.
It is irrelevant to the passage.

C. Invalid causal models are just as beneficial to managers as are valid causal models.
It is a wrong inference form the last line of the final paragraph , not an assumption.

D. Managers in the experimental group were able to attribute their increased skill at interpreting data to causal mechanisms.
Though it canbe assumed that the increased skill at interpreting data can be attributed to causal mechanisms, yet it can guaranteed that the managers were able to come to realize that.

Q3.  The second paragraph serves to 
My answer is A)
 A. provide empirical confirmation of an earlier assertion 
The author tries to provide experimental results as evidence to support his assertion that utilizing the cause-and-effect models by business managers can lead to greater gains in business performance.

B. suggest further experimental tests of a hypothesis
The para does not ask for new experiments for the hypothesis.

C. introduce an alternative theory to be explored
The author just provides experimental evidence to support his theory, nowhere does he mention any alternative thoery

D. prove a point introduced in the previous paragraph
Certainly the author tries to prove his assertion made in the previous para but he only provides experimantal test results and no further argument for the proof.
E. demonstrate the superiority of a viewpoint
The para doesn't serve to demonstrate any superiority of any one viewpoints on another.

mayankdgmat · Answer

1. The primary purpose of the passage is to

IMO B

A. advocate for a particular way of articulating business plans
Author was concerned about role of causal model.

B. assert that understanding causal mechanisms is essential for successful managers
True, author compares manager with understanding of causal model with manager who don't have any

C. explain how to create a viable business model for managers to follow
No, author don't go into such details

D. direct business analysts toward an understudied phenomenon
Nothing sort of this discussed

E. criticize the behavior of typical business managers
Not criticize, in advisable manner

2. Which of the following assumptions underlies the results of the experiment detailed in the final paragraph?

IMO E

A. The managers in the study were previously unaware of the role of causal mechanisms.
May be they are aware, but awarenes is diff than applying

B. None of the participants in the study were managers of unsuccessful companies.
Irrelevant

C. Invalid causal models are just as beneficial to managers as are valid causal models.
May be beneficial to other also. doesn't affect

D. Managers in the experimental group were able to attribute their increased skill at interpreting data to causal mechanisms.
Irrelevant

E. An increased ability to interpret and exploit data can lead to gains in performance measures.
True asexploting data linked iwth performance

Anugmat740 · Answer

IMO ADA
1. The primary purpose of the passage is to

P1 : How cause and effect theory is overlooked by the managers despite its importance in the business.
 P2:  Studies shows that the causal model plays an important role in business decision when used by managers even if data input is incorrect.

A. advocate for a particular way of articulating business plans - Author advocates that business plans should include the cause and effect models for success.

B. assert that understanding causal mechanisms is essential for successful managers - The model is for successful business plans and may or may not be for successful managers.

C. explain how to create a viable business model for managers to follow - The business model needs to include cause and effect models. It is not a neccesity to create a new model.The approach can be accomodated in the exisisting models.

D. direct business analysts toward an understudied phenomenon - It was directed towards manager and not business analyst.

E. criticize the behavior of typical business managers- Managers are not aware about the theory they are not criticized because of this.

2. Which of the following assumptions underlies the results of the experiment detailed in the final paragraph?

The second paragraph study was shown to highlight that despite the invalid causal models managers still able to interpret the data better than other managers who do not have access to such models. The model whether valid or invalid helps in increasing business performance.

Conclusion - Managers are better able to interpret and exploit the data because of the introduction of the causal models, which will lead to gains in performance measures.

A. The managers in the study were previously unaware of the role of causal mechanisms. - There awareness or unawareness does not impact the conclusion.

B. None of the participants in the study were managers of unsuccessful companies. - The companies does not impact the conclusion. The data can be be true for both successful and unsucessful companies.

C. Invalid causal models are just as beneficial to managers as are valid causal models. - This is one of the inference of the second paragraph and not the assumption.

D. Managers in the experimental group were able to attribute their increased skill at interpreting data to causal mechanisms.  - Correct, if we negate this that the managers were not attribute their increased skill to the causal mechanism. Than the study invalidates the result of the causal mechanisms and they may not be related to the increased skills of the managers at interpreting the data.

E. An increased ability to interpret and exploit data can lead to gains in performance measures. - This is the conclusion on the basis of which the argument is made.

3. The second paragraph serves to

A. provide empirical confirmation of an earlier assertion  - The expirement is shown to prove the point the author made in the first paragraph.

B. suggest further experimental tests of a hypothesis - Author is drawing conclusion based on the study in the second paragraph, he did not suggest any further experiments.

C. introduce an alternative theory to be explored - Second paragraph does not introduce any alternative theory it is the extension of the theory of the first paragraph.

D. prove a point introduced in the previous paragraph - Between A and D. A seems better as it includes the empirical confirmation.

E. demonstrate the superiority of a viewpoint - Author is not demonstrating the viewpoint is superior. He uses expiremental confirmation to prove the point.

Sajjad1994 · Answer

Hello Everyone!

The competition mode is closed. You can see your replies now.

The OAs are:

A E A

The official explanation will be posted soon! Good Luck!

Sajjad1994 · Answer

Official Explanation

1. The primary purpose of the passage is to

Explanation

In this passage, the author states that the most important goal of a manager is to articulate a business plan, one based on a cause-and-effect theory. The author goes on to state that many managers do not do this. The second half of the passage indicates that if managers were to do this, they may be able to increase their performance measures. This makes  (A)  the correct answer.

Choice (B)  is close, but is too extreme. The passage doesn’t say that it is essential to success to understand causal mechanisms.

Choice (C)  is not the right answer; the passage doesn’t explain how to create a model, just what kind of model is desirable.

Choice (D)  is not supported by the passage at all.

Choice (E)  is part of the passage, but is not the primary purpose. The passage deals predominantly with cause-and-effect theories, not just criticism.

The correct answer is (A).

Sajjad1994 · Answer

Official Explanation

2. Which of the following assumptions underlies the results of the experiment detailed in the final paragraph?

Explanation

Answering this question requires an understanding of the argument made in the last paragraph. The author concludes that managers may be able to increase their businesses performance measures by using causal mechanisms. The premise is that managers prompted with a causal mechanism were better able to interpret and exploit the data. Thus, the missing assumption is that a better ability to interpret and exploit data leads to increased performance measures. This is what (E) says. Whether or not the managers were aware of causal mechanisms, as in (A), is irrelevant to the argument. Nor is the type of company the managers are drawn from, as (B) states.

Choice (C) is not a necessary part of the argument; the argument simply states that both types provide a benefit, not that the benefits are equal. It doesn’t matter whether the managers could correctly attribute their increased skills; the only point is that they showed the ability. Thus (D) is incorrect.

Choice (C)  is not a necessary part of the argument; the argument simply states that both types provide a benefit, not that the benefits are equal. It doesn’t matter whether the managers could correctly attribute their increased skills; the only point is that they showed the ability. Thus  (D)  is incorrect.

The correct answer is (E).

Sajjad1994 · Answer

Official Explanation

3. The second paragraph serves to

Explanation

The first paragraph asserts that cause-and-effect theories are important to successful business plans. The second paragraph presents an empirical example that gives confirmation of this view, as  (A)  states.

No further tests are suggested, so  (B)  is not supported.

The passage does not introduce an alternative theory, making  (C)  incorrect.

Choice (D)  is tempting, but the word prove is too strong; the experiment lends confirmation to the theory, but does not prove it.

Choice (E)  is also too strong. The second paragraph lends support to a viewpoint, but doesn’t demonstrate its superiority.

The correct answer is (A).

VerbalBot · Answer

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Perhaps the most important goal of any business manager is to articula

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Perhaps the most important goal of any business manager is to articula

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615 to 715 in 15 Days (Ria's Strategies)

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