Studies in restaurants show that the tips left by customers : GMAT Critical Reasoning (CR)
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# Studies in restaurants show that the tips left by customers

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Studies in restaurants show that the tips left by customers [#permalink]

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12 Jan 2008, 06:41
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Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.
Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

A. The effect noted in the studies is not limited to patrons who have credit cards.
B. Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo.
C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.
D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.
E. The percentage of restaurant bills paid with given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.
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17 Jan 2008, 18:43
Anybody else?
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17 Jan 2008, 23:43
Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.
Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

A. This would weaken the hypothesize because both cc holders and non-cc holders leave bigger tips so perhaps it's a different issue (ie cash vs card).
B. Strengthens...further shows the impact of the cc logo on the bill tray.
C. This would weaken it since the hypothesis were those who paid cash using a cc
D. Weakens since it gives another reason other than the hypothesis
E. Doesn't weaken or support the conclusion.

I also pick B.
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18 Jan 2008, 00:21
The conclusion: psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.
The following argument that strengthen the psychologists hypothesize is the one that shows the relation between the Credit Card company, the credit card holders and their relation.

A. The effect noted in the studies is not limited to patrons who have credit cards. [The study is about credit card holder – irrelevant to argument]

B. Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo. [Strengthens the psychologists hypotheses – Hold it]

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards. [This choice invalids the psychologists’ hypotheses – Eliminate it]

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card. [This choice weakens psychologists’ hypotheses – Eliminate it]

E. The percentage of restaurant bills paid with given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared. [This choice makes an assertion with the credit card payment – this is not psychologists’ hypotheses – Eliminate it]

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16 Feb 2008, 16:43
What is the OA?
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17 Jul 2008, 05:37
OA IS B.

Was looking for the Explanation this today , and realized the OA isnt mentioned.
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17 Jul 2008, 05:54
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Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.
Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

A. The effect noted in the studies is not limited to patrons who have credit cards.
B. Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo.
C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.
D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.
E. The percentage of restaurant bills paid with given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.

Here's my reasoning

Conclusion : Tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo

Evidence : Seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.

Option 1 : Customers tend to spend more whenever they realize that they have more spending power than cash immediately available
Option 2 : The logo directly relates them to the amount (or lack of) of spending power they have.

Choice B, clearly strengthens option 2.
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06 Aug 2008, 00:14
I really can't understand how option b is the correct answer. The argument says that it's the sight of the credit card logo that influences the customers to pay more. In option b, it says that the sight of the credit card logo makes the customers pay less, so doesn't that weaken the argument because the argument says that the credit card logo rather makes the customers pay more?? help!
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06 Aug 2008, 07:15
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tarek99 wrote:
I really can't understand how option b is the correct answer. The argument says that it's the sight of the credit card logo that influences the customers to pay more. In option b, it says that the sight of the credit card logo makes the customers pay less, so doesn't that weaken the argument because the argument says that the credit card logo rather makes the customers pay more?? help!

Studies show the same thing as B mentioned: tips is more for cash than for Credit card – see the first line
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10 Aug 2008, 02:49
priyankur_saha@ml.com wrote:
tarek99 wrote:
I really can't understand how option b is the correct answer. The argument says that it's the sight of the credit card logo that influences the customers to pay more. In option b, it says that the sight of the credit card logo makes the customers pay less, so doesn't that weaken the argument because the argument says that the credit card logo rather makes the customers pay more?? help!

Studies show the same thing as B mentioned: tips is more for cash than for Credit card – see the first line

I really can't see that. In the first sentence, it says that customers who pay their bills with the credit card logo is higher than those who pay without the credit card logo. Option B shows the contrary: customers who are under financial pressure are still able to tip, but their tip is still less than the customers who are not presented with the credit card logo. What is the "less" in option B really comparing here? Maybe I don't understand the real comparison that the "less" is doing in option B.
Re: cr- argument support   [#permalink] 10 Aug 2008, 02:49
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