It is currently 21 Oct 2017, 00:03

### 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

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

# Q20: Community activist: If Morganville wants to keep its

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

### Hide Tags

SVP
Joined: 28 May 2005
Posts: 1700

Kudos [?]: 473 [3], given: 0

Location: Dhaka
Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

13 Nov 2005, 06:27
3
KUDOS
23
This post was
BOOKMARKED
00:00

Difficulty:

45% (medium)

Question Stats:

62% (01:27) correct 38% (01:47) wrong based on 1443 sessions

### HideShow timer Statistics

Q20:
Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activistâ€™s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
[Reveal] Spoiler: OA

_________________

hey ya......

Kudos [?]: 473 [3], given: 0

VP
Joined: 30 Sep 2004
Posts: 1480

Kudos [?]: 411 [2], given: 0

Location: Germany

### Show Tags

13 Nov 2005, 08:08
2
KUDOS
C)...this would answer the question whether the new mall was responsible for the bankruptcies or maybe its a trend that occurs even without the new mall.
_________________

If your mind can conceive it and your heart can believe it, have faith that you can achieve it.

Kudos [?]: 411 [2], given: 0

Senior Manager
Joined: 29 Aug 2005
Posts: 498

Kudos [?]: 14 [0], given: 0

### Show Tags

13 Nov 2005, 18:23
C - is correct.Provides the comparision.

Kudos [?]: 14 [0], given: 0

VP
Joined: 13 Jun 2004
Posts: 1112

Kudos [?]: 51 [0], given: 0

Location: London, UK
Schools: Tuck'08

### Show Tags

13 Nov 2005, 18:28
C would be the right question

you need to have an idea about the normal situation before talking about the specific cases

Kudos [?]: 51 [0], given: 0

Intern
Joined: 03 Jun 2005
Posts: 26

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

### Show Tags

13 Nov 2005, 23:28
A-Possible. If no activist was successful why bother. But this is not pertinent to argument itself, which says that 'Saveall' could be the cause for bankruptcy. Somwhat useful.

B. If the residents did not shop in Morganaville and shopped somewhere else, then the shops are not dependent on the residents. It would then follow that the shops would not go bankrupt if these people shopped in saveall.

C Does not emphasise the cause of bankruptcy as 'Saveall' it just establishes a time period for bankruptcy, which could be for any number of reasons. Not relevant.
D. Where the Employees are from does not affect the argument. Not relevant.
E. The performance of Saveall does not affect the argument, although if Saveall went bankrupt the shops may not. Somwhat useful.

I will go with B

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

SVP
Joined: 28 May 2005
Posts: 1700

Kudos [?]: 473 [0], given: 0

Location: Dhaka

### Show Tags

13 Nov 2005, 23:28
anymore takers.....
_________________

hey ya......

Kudos [?]: 473 [0], given: 0

Senior Manager
Joined: 07 Jul 2005
Posts: 402

Kudos [?]: 61 [0], given: 0

### Show Tags

13 Nov 2005, 23:31
I go with C.

Kudos [?]: 61 [0], given: 0

SVP
Joined: 24 Sep 2005
Posts: 1884

Kudos [?]: 379 [0], given: 0

Re: CR # Morganville [#permalink]

### Show Tags

14 Nov 2005, 05:31
nakib77 wrote:
Q20:
Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activistâ€™s reasoning?

B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?

well, i'm left with B and C. But let see which one is better.
Let see B: the activists want to prevent the opening of SaveAll ----> surely there is a large percentage of the residents of the town currently mostly shop at stores in the town. Because if there's no, the opening of SaveAll could attract most people to back to shop at the town( due to some kind of customer's attractive benefit provided by SaveAll)----> the activists would even encourage the opening of SaveAll to attract people to shop at their own town, not at some other towns ----> B can't be correct.
C it is.

Kudos [?]: 379 [0], given: 0

Manager
Status: Please do not forget to give kudos if you like my post
Joined: 19 Sep 2008
Posts: 121

Kudos [?]: 102 [0], given: 257

Location: United States (CA)
Re: Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

29 Sep 2013, 10:37
I choose B: reason: if we evaluate yes, then it strengthen the conclusion. if we evaluate no, then it does weaken the conclusion.

not sure why answer is C. since we already know the proportion of bankruptcy is 25%.

can someone explain?
_________________

[Reveal] Spoiler:

Kudos [?]: 102 [0], given: 257

Senior Manager
Joined: 07 Nov 2012
Posts: 334

Kudos [?]: 421 [5], given: 4

Schools: LBS '14 (A)
GMAT 1: 770 Q48 V48
Re: Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

30 Sep 2013, 03:18
5
KUDOS

Let me see if I Can help.

C is helpful because it provides us with a point of comparison.

For example if I tell you that I have a 25% success rate at a project, that's not actually useful in and of itself if you want to know if I'm good at that project. If I tell you though that I have a 25% success rate vs the average of 5% then you'd know that I'm better than average.

C works the same, how do you know if 25% is a lot of bankruptcies? Around the nation 25% might just be average - so the new mall has no additional impact.

Does that make sense?

Cheers,

James
_________________

Former GMAT Pill student, now on staff. Used GMATPILL OG 12 and nothing else: 770 (48,48) & 6.0

... and more

Kudos [?]: 421 [5], given: 4

Intern
Joined: 31 Mar 2014
Posts: 20

Kudos [?]: 13 [0], given: 1

Concentration: Operations, General Management
Schools: IIMA (PGPX)
Re: Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

19 Aug 2014, 18:39
1
This post was
BOOKMARKED
Reasoning is as follows : we should stop saveall to save central shopping -- Why ? if Save all opens a store --- outside then 25% of town experienced bankruptcies.

This is a classic assumptions: 25% is abnormal bankruptcy filing rate. It doesn't happen normally.
Our town is similar to other towns with regards to quality of central shopping district. Thus, saveall will impact our town as well.

Whether 25% is normal or not ? or
Whether Morganville is comparable to other town that filed bankruptcy in csd ?

Q20:
Community activist: If Morganville wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Morganville. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following would be most useful for evaluating the community activistâ€™s reasoning?

A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
We are only discussing impact of saveall on csd. Nothing else . Out of scope(OFS)
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville?
This is the tricky one. If i have a shop and if everyday 10000 customers come to mine, then i dont care whether they are locals or outsiders. This is misleading option that is (ofs)
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
[color=#ed1c24]This is the actual hidden assumption that is put in question. Argument is based on the reason that 25% rate. Is it abnormal is something we should know(correct) ?[/color]
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?
We are bothered about stores filing bankruptcy. Not employees (ofs)
E. Do newly opened SaveAll stores ever lose money during their first five years of operation?
We dont care if saveall looses money or not. Conclusion is about impact of saveall on local stores(OFS).

Kudos [?]: 13 [0], given: 1

Intern
Joined: 26 Sep 2012
Posts: 17

Kudos [?]: 6 [0], given: 6

Location: United States
GMAT Date: 06-27-2014
GPA: 3.2
Re: Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

21 Aug 2014, 08:00
A. Have community activists in other towns successfully campaigned against the opening of a SaveAll store on the outskirts of their towns?
- Out of scope
B. Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville? - Not relevant as activist reasoning about bankruptcy.
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period? - Correct Answer
D. What proportion of the employees at the SaveAll store on the outskirts of Morganville will be drawn from Morganville?- Not relevant as activist reasoning about bankruptcy.
E. Do newly opened SaveAll stores ever lose money during their first five years of operation? - Out of scope

Kudos [?]: 6 [0], given: 6

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10120

Kudos [?]: 262 [0], given: 0

Re: Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

25 Aug 2015, 18:15
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.

Kudos [?]: 262 [0], given: 0

Manager
Joined: 27 Feb 2015
Posts: 59

Kudos [?]: 9 [0], given: 56

Concentration: General Management, Economics
GMAT 1: 630 Q42 V34
WE: Engineering (Transportation)
Re: Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

24 May 2016, 12:45
plumber250 wrote:

Let me see if I Can help.

C is helpful because it provides us with a point of comparison.

For example if I tell you that I have a 25% success rate at a project, that's not actually useful in and of itself if you want to know if I'm good at that project. If I tell you though that I have a 25% success rate vs the average of 5% then you'd know that I'm better than average.

C works the same, how do you know if 25% is a lot of bankruptcies? Around the nation 25% might just be average - so the new mall has no additional impact.

Does that make sense?

Cheers,

James

Well, I understand the logic behind C.
can u please explain why B is not correct.??
Because if we answer 'yes' to - Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville? - we can say saveall opening will affect the Morganville.
and if we answer 'no'- then as it is people are not shopping in Morganville ,so people flocking to saveall will not make any difference.

Kudos [?]: 9 [0], given: 56

Verbal Expert
Joined: 14 Dec 2013
Posts: 3157

Kudos [?]: 3310 [1], given: 22

Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
Re: Q20: Community activist: If Morganville wants to keep its [#permalink]

### Show Tags

25 May 2016, 06:40
1
KUDOS
Expert's post
deepak268 wrote:
plumber250 wrote:

Let me see if I Can help.

C is helpful because it provides us with a point of comparison.

For example if I tell you that I have a 25% success rate at a project, that's not actually useful in and of itself if you want to know if I'm good at that project. If I tell you though that I have a 25% success rate vs the average of 5% then you'd know that I'm better than average.

C works the same, how do you know if 25% is a lot of bankruptcies? Around the nation 25% might just be average - so the new mall has no additional impact.

Does that make sense?

Cheers,

James

Well, I understand the logic behind C.
can u please explain why B is not correct.??
Because if we answer 'yes' to - Do a large percentage of the residents of Morganville currently do almost all of their shopping at stores in Morganville? - we can say saveall opening will affect the Morganville.
and if we answer 'no'- then as it is people are not shopping in Morganville ,so people flocking to saveall will not make any difference.

Take it this way: Yes a large % shops at the shopping district. As you have correctly mentioned, in this case opening SaveAll will definitely affect the shopping district. But why? Because the shopping district is doing well because of that large % of people shopping.

Now suppose the other way round - No, only a small % shops at the shopping district. It may so be the case that the shopping district is doing well because of this small % of people shopping there. If SaveAll is opened, this small % may be diverted to SaveAll.

Thus what % of residents currently shop at the shopping district does not matter, it matters whether those people will be diverted after opening of SaveAll. Thus B is incorrect.

Kudos [?]: 3310 [1], given: 22

Re: Q20: Community activist: If Morganville wants to keep its   [#permalink] 25 May 2016, 06:40
Display posts from previous: Sort by

# Q20: Community activist: If Morganville wants to keep its

 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®.