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

It is currently 22 Sep 2018, 00:27

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

Soft Drinks Manufacturer: Despite attractive offers, our company has

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

Hide Tags

Retired Moderator
User avatar
Joined: 06 Jul 2014
Posts: 1244
Location: Ukraine
Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33
GMAT 2: 740 Q50 V40
GMAT ToolKit User Premium Member
Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 05 Sep 2015, 14:47
2
5
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

73% (01:22) correct 27% (01:24) wrong based on 338 sessions

HideShow timer Statistics

Soft Drinks Manufacturer: Despite attractive offers, our company has rejected any plans to expand our market into the Czech Republic at this time. We simply have no data on how well received our products would be in the Czech Republic.
Industry Analyst: Your position is inconsistent. Last year, you expended into Bolivia, even after taste tests had definitely found that approximately 40% of the Bolivian population did not care for any of your products. Therefore, concerns about how well received your product will be cannot be motivating this position.

The industry analyst's argument is flawed because it fails to consider that:

A) the company's most popular soft drink in Bolivia might be different from the company's most popular soft drink in the Czech Republic.
B) coffee is more popular than most soft drinks in both Bolivia and in the Czech Republic
C) the Czech currency is much stronger than the Boliviano, the national currency of Bolivia.
D) the results of taste tests in a particularly country can change over the years as different beverages are sold in that country.
E) known risks can be assessed, but unknown risks cannot.

_________________

Simple way to always control time during the quant part.
How to solve main idea questions without full understanding of RC.
660 (Q48, V33) - unpleasant surprise
740 (Q50, V40, IR3) - anti-debrief ;)

Manager
Manager
avatar
Joined: 10 Feb 2012
Posts: 70
Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 06 Sep 2015, 03:15
though i understood that it's E but can anyone explain why D is wrong ?
Retired Moderator
User avatar
Joined: 06 Jul 2014
Posts: 1244
Location: Ukraine
Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33
GMAT 2: 740 Q50 V40
GMAT ToolKit User Premium Member
Re: Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 06 Sep 2015, 10:08
grr8pe wrote:
though i understood that it's E but can anyone explain why D is wrong ?



Hello grr8pe

D is out of scope because it says about data obsolescense.
But analyst does not use old data to provide some decisions. He just says that in the past we have some situation when a lof people do not like the product but we still went to that market.

This answer D can be correct in such situation:
Analyst said that we should go to country A because data from 4 year old analysis show that we have high appreciation of our products in this country.
_________________

Simple way to always control time during the quant part.
How to solve main idea questions without full understanding of RC.
660 (Q48, V33) - unpleasant surprise
740 (Q50, V40, IR3) - anti-debrief ;)

Retired Moderator
User avatar
S
Joined: 18 Sep 2014
Posts: 1148
Location: India
GMAT ToolKit User Premium Member Reviews Badge
Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 06 Sep 2015, 11:32
Soft Drinks Manufacturer has no data on how well received our products would be in the Czech Republic and is skeptical.

Industry Analyst: gives one example of not so good experience.
Therefore, concerns about how well received your product will be cannot be motivating this position.

The industry analyst's argument is flawed because it fails to consider that:

A) the company's most popular soft drink in Bolivia might be different from the company's most popular soft drink in the Czech Republic.(Keep this aside.)
B) coffee is more popular than most soft drinks in both Bolivia and in the Czech Republic(This info does no help)
C) the Czech currency is much stronger than the Boliviano, the national currency of Bolivia.(Out of scope)
D) the results of taste tests in a particularly country can change over the years as different beverages are sold in that country.(This can be true but this is too wide in scope since it covers different beverages not only of manufacturer. The change can be positive or negative)
E) known risks can be assessed, but unknown risks cannot.(Not sure about this)

Out of A and E, I selected A as if since the drink is different the outcome is different.
Even if we think that the company has not yet expanded their market into Czech there cannot be a popular soft drink of that company. So this option negates the premise.(Is this analysis correct?)

Please explain why option E is correct?
_________________

The only time you can lose is when you give up. Try hard and you will suceed.
Thanks = Kudos. Kudos are appreciated

http://gmatclub.com/forum/rules-for-posting-in-verbal-gmat-forum-134642.html
When you post a question Pls. Provide its source & TAG your questions
Avoid posting from unreliable sources.


My posts
http://gmatclub.com/forum/beauty-of-coordinate-geometry-213760.html#p1649924
http://gmatclub.com/forum/calling-all-march-april-gmat-takers-who-want-to-cross-213154.html
http://gmatclub.com/forum/possessive-pronouns-200496.html
http://gmatclub.com/forum/double-negatives-206717.html
http://gmatclub.com/forum/the-greatest-integer-function-223595.html#p1721773
https://gmatclub.com/forum/improve-reading-habit-233410.html#p1802265

Retired Moderator
User avatar
Joined: 06 Jul 2014
Posts: 1244
Location: Ukraine
Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33
GMAT 2: 740 Q50 V40
GMAT ToolKit User Premium Member
Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 06 Sep 2015, 14:35
1
Mechmeera wrote:
Soft Drinks Manufacturer has no data on how well received our products would be in the Czech Republic and is skeptical.

Industry Analyst: gives one example of not so good experience.
Therefore, concerns about how well received your product will be cannot be motivating this position.

The industry analyst's argument is flawed because it fails to consider that:

A) the company's most popular soft drink in Bolivia might be different from the company's most popular soft drink in the Czech Republic.(Keep this aside.)
B) coffee is more popular than most soft drinks in both Bolivia and in the Czech Republic(This info does no help)
C) the Czech currency is much stronger than the Boliviano, the national currency of Bolivia.(Out of scope)
D) the results of taste tests in a particularly country can change over the years as different beverages are sold in that country.(This can be true but this is too wide in scope since it covers different beverages not only of manufacturer. The change can be positive or negative)
E) known risks can be assessed, but unknown risks cannot.(Not sure about this)

Out of A and E, I selected A as if since the drink is different the outcome is different.
Even if we think that the company has not yet expanded their market into Czech there cannot be a popular soft drink of that company. So this option negates the premise.(Is this analysis correct?)

Please explain why option E is correct?


Hello Mechmeera
Analyst says that In Bolivia company had a risk (40% of people do not care about products of this company) but still company went to this market
Conclusion: company should going to any country even if company has no data about product perception in this country.

So the main flaw that analyst made is a conclusion that entering to market with 40% of people who do not care about products of this company equal to entering to market with full absence of data.

A says that analyst wrong because "the company's most popular drink in Bolivia might be different from the company's most popular drink in Czech Republic". If this correct answer then we can infer that if company's most popular drink in any country are similar to company's most popular drink in Bolivia then company can go to the market of new country withouat any data.
This is wrong because similarity of the company's most popular drink says nothing about share of market. In Bolivia it can be 50% in Czech Republic it can be 1%.
_________________

Simple way to always control time during the quant part.
How to solve main idea questions without full understanding of RC.
660 (Q48, V33) - unpleasant surprise
740 (Q50, V40, IR3) - anti-debrief ;)

Board of Directors
User avatar
P
Joined: 17 Jul 2014
Posts: 2683
Location: United States (IL)
Concentration: Finance, Economics
GMAT 1: 650 Q49 V30
GPA: 3.92
WE: General Management (Transportation)
GMAT ToolKit User Premium Member Reviews Badge
Re: Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 25 Oct 2015, 10:34
E for sure. My pre-thinking was that in Bolivia, the company had at least some data, but in CR, nothing. You cannot do smth without having at least some knowledge.
Retired Moderator
User avatar
D
Status: worked for Kaplan's associates, but now on my own, free and flying
Joined: 19 Feb 2007
Posts: 4542
Location: India
WE: Education (Education)
Re: Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 25 Oct 2015, 11:23
1
Quote:
Physician: The hormone melatonin has shown promise as a medication for sleep disorders when taken in synthesized form. Because the long-term side effects of synthetic melatonin are unknown, however, I cannot recommend its use at this time



This is a simulation from the popular OG topic found in this link below


physician-the-hormone-melatonin-has-shown-promise-as-a-136962.html

In this also the answer is E
_________________

you can know a lot about something and not really understand it."-- a quote
No one knows this better than a GMAT student does.
Narendran +9198845 44509

SVP
SVP
avatar
P
Joined: 12 Dec 2016
Posts: 1789
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
GMAT ToolKit User Premium Member
Re: Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 30 Dec 2017, 04:22
E is a very common and important pattern in gmat. Many questions have such pattern that is similar to the pattern in E.
B,C,D are out of sscope for sure.
A is wrong b/c of the comparison between 2 most popular drinks in 2 countries.
VP
VP
User avatar
V
Joined: 23 Sep 2015
Posts: 1069
GMAT ToolKit User Reviews Badge
Re: Soft Drinks Manufacturer: Despite attractive offers, our company has  [#permalink]

Show Tags

New post 07 Aug 2018, 08:30

Official Explanation


In the case of Bolivia, the soft drinks manufacturer had some data, and therefore was making the moving into that country with a certain amount of data already in hand. By contrasts, in the case of the Czech Republic, they say they have "no data", and that's a very different set of circumstances. It's one thing to go into a situation knowing there are some opportunities and some challenges, but it's very different to go into a situation totally blind ---- that's certainly not how any business would want to take risks with sizeable portions of capital.

(E) is the credited answer, because it precisely captures this very issue. In Bolivia, we have data, so we know the risks. In the Czech Republic, they have no data, so the risks are unknown and therefore cannot be assessed. That explains the difference in the soft drink manufacturer's approach, and this is precisely what the industry analyst overlooks.

(A) is irrelevant: the soft drinks manufacturer has several products, so it does matter if the single most popular product in one place is the same as it is in the other.

(B) is irrelevant: coffee may be a bigger market in both countries, but this manufacturer wants to tap the soft drink market.

(C) is ambiguous: it suggests that initial costs of moving into the Czech market might be higher, because the currency there is stronger, but later on, any profits would be more substantial. Because it's ambiguous, this doesn't clearly support a choice either way.

(D) is irrelevant: tastes can change over time, but this company wants to know what will sell right now. They don't have any data about that in the Czech Republic.
_________________

Thanks!
Do give some kudos.

Simple strategy:
“Once you’ve eliminated the impossible, whatever remains, however improbable, must be the truth.”

Best Gmat Resource:
GmatPrep CR|GmatPrep SC|GmatPrep RC

Want to improve your Score:
GMAT Ninja YouTube! Series 1| GMAT Ninja YouTube! Series 2

My Notes:
Reading comprehension

Re: Soft Drinks Manufacturer: Despite attractive offers, our company has &nbs [#permalink] 07 Aug 2018, 08:30
Display posts from previous: Sort by

Soft Drinks Manufacturer: Despite attractive offers, our company has

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

Events & Promotions

PREV
NEXT


cron

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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®.