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Studies in restaurants show that the tips left by customers who pay th 24 Oct 2018, 12:59
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NAvinash
GMATNinja - I understand this questions is already discussed a lot and all aspects are covered. Your explanation followed by eGMAT note [both] isgreat. More I read , more I am getting closure to answer but sometime getting confused as well.

One of the question in my mind is , per option B , if CC holder pay less because of his CC obligations or pressure then if I club this with passage content then consider a case when CC holder is paying by cash, he get a tray with CC logo and he is already in CC debt then he will not tend to pay more tip. And so this case is not helping me strengthen my belief.

Thanks - NA
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Choice (B) strengthens the argument because it strengthens the connection between seeing a CC logo and adjusting the amount of tip. It does not matter if the adjustment is to tip more or tip less. The connection between seeing a logo and thinking of your spending power remains.

Furthermore, (B) is still a much stronger choice than any other answer choice available. Our task is to pick the choice that most strongly supports the psychologists' interpretation of the studies. So this is sufficient for us to wrap up the question and move on.
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Studies in restaurants show that the tips left by customers who pay th 18 Jan 2021, 01:14
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Quite happy that I got this one...as it brings me one step closer to stamping that GMAT style logic / attention to wording that is required.


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.

Customers who pay in cash tip more when the bill is presented on a tray with a credit card logo > Psychologists hypothesize this is because patrons re reminded that their spending power exceeds the cash they have on hand

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.
-irrelevant since conclusion is about credit card holders

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.
Correct…the logo acts as a memory trigger device …the hypothesis is that simply seeing the logo makes the cardholders willing to spend more because it REMINDS them that their spending power exceeds what they have available. Well in that case, seeing the logo should also remind them of when their spending power DOES NOT exceed what they have available…in which case they would tip less.

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.
-this weakens the argument … the argument is predicated on the fact that the credit-card logo is what prompts people to spend more…in memory psychology …the logo is effectively a trigger device for people to act in some way…so if there is no reason for that trigger to exist (it wouldn’t if people don’t have a cc), then this must mean there’s something else that’s pushing them to tip more

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.
-seems to weaken…credit card holders according to the hypothesis will spend more…at the very least this doesn’t go in the direction we need it to

E. The percentage of restaurant bills paid with a given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.
-brand is irrelevant
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The passage itself is pretty straightforward:

  • We have the results of the studies: "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." - notice the use of the word "tend". The psychologists are not suggesting that seeing a credit card (CC) logo on the tray will ALWAYS cause an increase in tip amount. In general, seeing a CC logo results in higher tip amounts.
  • And we have an interpretation of those results: "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." - notice that this hypothesis only mentions "credit-card holders"

What the heck does that mean? Well, if you have $100 cash in your pocket and don't have any credit cards, then your "spending power" is limited to that cash amount. If you walk into an electronics store and want to buy a fancy television for $1,000, you'll be out of luck.

But what if, in addition to the $100 cash, you have a CC with a $5,000 spending limit? Now your spending power exceeds the amount of cash in your pocket. Sure, you'll have to pay off that credit card in the future, but right now you can walk into that electronics store and buy FIVE of those fancy televisions! The credit card does not actually give you any money, but it certainly increases your present spending power.

So now imagine you are in a restaurant. The bill is $50, and you have $100 cash in your pocket. You decide to leave a 10% tip ($5). But then you notice the credit card logo on the bill tray. This reminds you of the shiny American Express CC in your pocket, and that card has a $5,000 credit limit. You are reminded that your spending power exceeds the $100 cash that you have. So paying a $50 restaurant bill is not going to take away HALF of your spending power. Instead, it will only take away a small portion of your current spending power.

Reminded that you spending power is not limited to the cash, you might decide to leave an even larger tip (maybe $7-10 instead of $5).

Now that we understand the psychologists’ interpretation of the studies, we need something that supports that interpretation:

Quote:
A. The effect noted in the studies is not limited to patrons who have credit cards.
The hypothesis is that the CC logo reminds people that they have a credit card and thus that they have greater spending power. If (A) is true, then the logos cause higher tips even among people who do NOT have credit cards. In that case, the increase can't be explained by the psychologists' hypothesis. (A) weakens the argument, so eliminate this one.

Quote:
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.
According to the psychologists, customers tip more when they are reminded that their spending power exceeds the cash they currently have available. If this is true, then we would expect customers to tip LESS when they are reminded that their spending power is LESS than the cash they currently have available.

Huh? Well, think about a man who is in debt. He might have $100 in his pocket, but he owes his friend $500. He might have been ready to give a $5 tip, but as soon as he remembers that he owes money, he decides to give $3-4 instead.

Although choice (B) presents a scenario that is the opposite of the one presented in the passage, both scenarios support the same theory, which is that being reminded of your spending power can impact how much you tip. Generally, this causes people to tip more because they are reminded that their spending power exceeds the cash they have. However, for people in credit card debt, seeing the logo is a reminder that their spending power is actually lower.

So if choice (B) is true, it would support the psychologists' hypothesis. Keep this one.

Quote:
C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.
As with choice (A), this weakens the argument. The whole idea is that the CC logo reminds you that you have a credit card and, thus, that your spending power is not limited to the cash in your pocket. (C) tells us that the logos caused higher tips even though the patrons did NOT have CC's. This contradicts the hypothesis, so eliminate (C).

Quote:
D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.
If anything, this might weaken the hypothesis. People who pay with a CC are obviously aware that they have a credit card. If, as the psychologists suggest, having a CC supposedly makes you aware of your expanded spending power, then why don't the people paying with CC's leave larger tips?

The hypothesis can certainly still work even if (D) is true. Maybe cash patrons tend to tip more for some reason that is unrelated to the study. Regardless, if those people tend to tip even more when they see the CC logo because they are reminded of their expanded spending power, then the psychologists' interpretation would be accurate.

At best, (D) has no impact, but it certainly doesn't strengthen the argument. Eliminate (D).

Quote:
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 evidence suggests that the logos can be effective as advertising tools. If you see the AMEX logo, you might decide to use your AMEX card instead of cash or instead of your Visa card. But how does that impact your tip amount? The hypothesis is not concerned with whether people actually use CC's. Rather, it is concerned with the cause of the increased tip amounts. (E) is irrelevant.

(B) is the best answer.
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I understand why D would be wrong. But marking B as the ans would be similar to saying that if i tell you i like tea, you are assuming then that i will not like any other drink. Maybe i even hate the other drinks(say coffee for example). Ans B says that while people with a CC logo are reminded to pay more tips, people who are in debt are reminded that they can't pay more when they see the CC logo. The passage talks only about people who can pay more tip on seeing the logo. We don't have info on people who can't pay more tip. Does the GMAT test such reasoning too?
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Studies in restaurants show that the tips left by customers who pay th 18 Sep 2021, 09:15
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shivangiindore

I understand why D would be wrong. But marking B as the ans would be similar to saying that if i tell you i like tea, you are assuming then that i will not like any other drink. Maybe i even hate the other drinks(say coffee for example). Ans B says that while people with a CC logo are reminded to pay more tips, people who are in debt are reminded that they can't pay more when they see the CC logo. The passage talks only about people who can pay more tip on seeing the logo. We don't have info on people who can't pay more tip. Does the GMAT test such reasoning too?
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Remember that we’re looking for an answer choice that supports the psychologists’ interpretation. We’re not looking for an answer choice that proves the psychologists’ interpretation.

You’re right that the psychologists’ interpretation is about the behavior of those who could increase their tip, and (B) is about the behavior of those who are unlikely to increase their tip. So we definitely can’t prove anything conclusively on the basis of (B).

But we’re not looking to do that. (B) supports the idea that the presence (or lack thereof) of a credit-card logo has some impact on consumer’s spending habits. That doesn’t prove the psychologists’ interpretation, but it does support it. And for that reason, (B) is the best answer choice.

I hope that helps!
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Studies in restaurants show that the tips left by customers who pay th 29 Sep 2021, 22:26
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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?

Question type: Weaken the Argument

Conclusion: 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.

Task at hand: We have to show that seeing a credit-card logo does not necessarily make credit-card holders willing to spend more. This could be because the logo reminds them that their spending power does not necessarily exceed the cash they have immediately available.

A. The effect noted in the studies is not limited to patrons who have credit cards. It may not be, but this does not show that seeing a credit-card logo does not make credit-card holders spend more.

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. The theory being proposed by Consumer Psychologists is that seeing a logo will make credit-card holders spend more because they are reminded that they have high spending power. This option shows us that seeing the logo makes them spend less because they are reminded that their spending power is not so high after all. This weakens the conclusion.

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards. This actually weakens the hypothesis. If a guy doesn't have a credit card, how would a credit card logo remind him of his higher spending power?

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card. Out of scope

E. The percentage of restaurant bills paid with a given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared. Which brand is used is irrelevant.

- Nitha Jay
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The answer that most strongly supports the psychologists' interpretation of the studies is B. If 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 a credit-card logo than when the tray has no logo, it suggests that the credit-card logo triggers thoughts of debt and financial stress, leading to a decrease in willingness to spend. This finding supports the psychologists' interpretation that the credit-card logo on the tray reminds credit-card holders of their spending power and influences their tipping behavior.
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premise: CC reminds them their spending power greater than the cash they have right now.
Conclusion: CC holders are willing to spend more when a tray is presented with a credit-card logo.

what is our duty when we see the strengthening questions?
The argument or proposition presented in the options choices strengthens the conclusion by providing another premise ( it may be outside of the context, but it will be fine as long as the other premise strengthens the argument). it would still be fine the option choice which strengthens by little at least my opinion, may be I wrong correct me IF I was.

When I read option choice(b) carefully, My mind immediately told me that at least they tend to tip less, naa if they are under financial pressure from their credit-credit obligations) or whatever condition they have. that's why choice(b) is the best answer because it strengthens by little. okay, I got it what you are thinking the conclusion said Cc holder spends more and you said less. how can it strengthens the conclusion, instead it weakens the conclusion. Okay let me illustrate my claim by presenting an example. Now, Imagine you are in a KFC hotel in Los Angeles, CA, United States.
You have 100 dollar in your pocket and are hungry. then you looked the menu as you are considering your pocket money and ordered the crispy chicken sandwich from the waiter, which prices $8. After a while, your order comes to your table. after you delivered the crispy in your stomach, You are thinking that it was delicious, and today, I may give a extra tips. when a bill is presented on the tray that carry a Credit-card(like, American Express).Your inner dialogue starts to battle, I have a also a visa card which has amount of $4,000.Your ego can't settle down in minimum amount when you saw the debit card, you, finally, will end up paying $50 dollar.( more than you imagined). you'll regret remembering the whole situation when you reached a home. that is the another part, I won't discuss about it.

similarly, Your friend went to same KFC with same amount. but He has been facing financial pressure from credit-card obligations for 1 month. but he end up paying the $ 13 dollar ($8 dollar for crispy, 5 dollar for tips).


What I am trying to emphasis on here is that They both strengthens the argument because they spend willing to the more money as to them. as to you, you spend more($50). likewise, as to your friend, he spend more($13) at least his point of view. Your friend spends less money the you does. that doesn't mean by he is spending less money. and the option(b) clearly say that ??? financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo. that also doesn't mean by they don't tip at all.

Can anyone(e-GMAT,GMATNinja) shed more light on my argument? I will more happy if anyone find any fallacies in my logical reasoning?
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Studies in restaurants show that the tips left by customers who pay th 27 Apr 2023, 07:29
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Quote:
premise: CC reminds them their spending power greater than the cash they have right now.
Conclusion: CC holders are willing to spend more when a tray is presented with a credit-card logo.
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Well firstly there's a bit of an issue here with premise, conclusion, and specificity.

The premise is that 'people who tip with cash tip more when there is a credit card logo present.' The conclusion we're evaluating is 'the presence of the logo reminds them they have more spending power than what is currently on them.'

To strengthen that argument, we need to either:

--make another plausible explanation for the 'higher cash tips on trays with credit card logo' less likely.
--give more evidence that awareness of 'spending power from credit cards' causes higher tips.

A subtle version of the second one, though, would be to show the *opposite*: that awareness of 'LESS spending power due to credit cards' causes LOWER tips. This is what B gets to: people who have financial difficulties due to credit card debt tip LESS when there is a logo present, giving more credence to the idea that the presence of a credit card logo makes people think about their spending power from credit cards: if their CC spending power is GOOD, more tips; if BAD, less tips.
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Quote:
Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more
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In the question it says, that "simply seeing logo" makes the customer spend more. But the answer choice B says, that customer might spend less if he user financial constraint. So is that not a contradictory answer? Because the question just assumed that consumer will spend more just by seeing the logo.

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adgarg

Quote:
Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more
In the question it says, that "simply seeing logo" makes the customer spend more. But the answer choice B says, that customer might spend less if he user financial constraint. So is that not a contradictory answer? Because the question just assumed that consumer will spend more just by seeing the logo.

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­Note exactly what the argument says:

Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be largerwhen 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.

Many people would view the credit card as extra spending power.
But some people would view it as a large liability. It is consistent with the argument and general logic. 
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­To solve this question, let us deploy IMS's four-step technique.

STEP #1 -> IDENTIFY THE QUESTION TYPE

Let us read the question stem to identify the question type.

Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?

The stem indicates a strengthening question.

STEP #2 -> DECONSTRUCT THE ARGUMENT

In a strengthening question, it is a must to deconstruct the argument by figuring out the conclusion and the premise. Let us therefore read the argument first and deconstruct it soon after.
Quote:
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.
Show more
CONCLUSION: Simply seeing a credit-card logo makes many credit-card holders willing to spend more.
PREMISE: Studies show that 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.
REASONING: Seeing a credit card logo reminds credit card holders that their spending power exceeds the cash they have immediately available.

STEP #3 -> FRAME A SHADOW ANSWER

In order to frame a shadow answer, we need to know what the right answer should do. In this question, the right answer must support the psychologists’ interpretation of the studies.

SHADOW ANSWER: Any situation that leads us to believe that seeing a credit card logo actually reminds credit card holders of their spending power.

STEP #4 -> ELIMINATE INCORRECT OPTIONS

A. The effect noted in the studies is not limited to patrons who have credit cards. - NOT A MATCH - If the effect noted in the studies is not limited to patrons who have credit cards, it will weaken the interpretation that seeing a credit card logo actually reminds CREDIT CARD HOLDERS that their spending power exceeds the cash they have immediately available. - ELIMINATE

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. - MATCHES THE SHADOW ANSWER - If 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 a credit-card logo than when the tray has no logo, it leads us to believe that seeing a credit card logo actually reminds credit card holders of their spending power. (Patrons see the credit card logo -> Are reminded of their spending power and current financial obligations -> Feel financially constrained -> Tip less) - KEEP

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards. - NOT A MATCH - This answer option directly challenges the reasoning of the psychologists and calls into question their hypothesis. In other words, if in virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards, it would be fallacious to draw a conclusion about credit-card holders from the stated premise. - ELIMINATE

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card. - NOT A MATCH - If restaurant patrons who pay their bills in cash leave larger tips in general than do those who pay by credit card, the interpretation that credit card logo reminds credit card holders of their spending power is unimpacted. - ELIMINATE

E. The percentage of restaurant bills paid with a given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared. - NOT A MATCH - If percentage of restaurant bills paid with a given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared, the interpretation that seeing a (ANY) credit card logo reminds credit card holders of their spending power is definitely not strengthened. - ELIMINATE

Hence, (B) becomes the correct answer.
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Studies in restaurants show that the tips left by customers who pay th 29 Dec 2024, 21:59
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The passage itself is pretty straightforward:

  • We have the results of the studies: "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." - notice the use of the word "tend". The psychologists are not suggesting that seeing a credit card (CC) logo on the tray will ALWAYS cause an increase in tip amount. In general, seeing a CC logo results in higher tip amounts.
  • And we have an interpretation of those results: "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." - notice that this hypothesis only mentions "credit-card holders"

What the heck does that mean? Well, if you have $100 cash in your pocket and don't have any credit cards, then your "spending power" is limited to that cash amount. If you walk into an electronics store and want to buy a fancy television for $1,000, you'll be out of luck.

But what if, in addition to the $100 cash, you have a CC with a $5,000 spending limit? Now your spending power exceeds the amount of cash in your pocket. Sure, you'll have to pay off that credit card in the future, but right now you can walk into that electronics store and buy FIVE of those fancy televisions! The credit card does not actually give you any money, but it certainly increases your present spending power.

So now imagine you are in a restaurant. The bill is $50, and you have $100 cash in your pocket. You decide to leave a 10% tip ($5). But then you notice the credit card logo on the bill tray. This reminds you of the shiny American Express CC in your pocket, and that card has a $5,000 credit limit. You are reminded that your spending power exceeds the $100 cash that you have. So paying a $50 restaurant bill is not going to take away HALF of your spending power. Instead, it will only take away a small portion of your current spending power.

Reminded that you spending power is not limited to the cash, you might decide to leave an even larger tip (maybe $7-10 instead of $5).

Now that we understand the psychologists’ interpretation of the studies, we need something that supports that interpretation:

Quote:
A. The effect noted in the studies is not limited to patrons who have credit cards.
The hypothesis is that the CC logo reminds people that they have a credit card and thus that they have greater spending power. If (A) is true, then the logos cause higher tips even among people who do NOT have credit cards. In that case, the increase can't be explained by the psychologists' hypothesis. (A) weakens the argument, so eliminate this one.

Quote:
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.
According to the psychologists, customers tip more when they are reminded that their spending power exceeds the cash they currently have available. If this is true, then we would expect customers to tip LESS when they are reminded that their spending power is LESS than the cash they currently have available.

Huh? Well, think about a man who is in debt. He might have $100 in his pocket, but he owes his friend $500. He might have been ready to give a $5 tip, but as soon as he remembers that he owes money, he decides to give $3-4 instead.

Although choice (B) presents a scenario that is the opposite of the one presented in the passage, both scenarios support the same theory, which is that being reminded of your spending power can impact how much you tip. Generally, this causes people to tip more because they are reminded that their spending power exceeds the cash they have. However, for people in credit card debt, seeing the logo is a reminder that their spending power is actually lower.

So if choice (B) is true, it would support the psychologists' hypothesis. Keep this one.

Quote:
C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.
As with choice (A), this weakens the argument. The whole idea is that the CC logo reminds you that you have a credit card and, thus, that your spending power is not limited to the cash in your pocket. (C) tells us that the logos caused higher tips even though the patrons did NOT have CC's. This contradicts the hypothesis, so eliminate (C).

Quote:
D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.
If anything, this might weaken the hypothesis. People who pay with a CC are obviously aware that they have a credit card. If, as the psychologists suggest, having a CC supposedly makes you aware of your expanded spending power, then why don't the people paying with CC's leave larger tips?

The hypothesis can certainly still work even if (D) is true. Maybe cash patrons tend to tip more for some reason that is unrelated to the study. Regardless, if those people tend to tip even more when they see the CC logo because they are reminded of their expanded spending power, then the psychologists' interpretation would be accurate.

At best, (D) has no impact, but it certainly doesn't strengthen the argument. Eliminate (D).

Quote:
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 evidence suggests that the logos can be effective as advertising tools. If you see the AMEX logo, you might decide to use your AMEX card instead of cash or instead of your Visa card. But how does that impact your tip amount? The hypothesis is not concerned with whether people actually use CC's. Rather, it is concerned with the cause of the increased tip amounts. (E) is irrelevant.

(B) is the best answer.
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Hi GMATNinja
I am a bit confused with the option B, my reasoning was:
Option B has No Impact, this option is specific about patrons who already pay less using a credit card than when the tray has no logo so these people are not relevant for us as the argument's study focuses on patrons who pay their bill in cash and it tend to be larger when the bill is presented on a tray that bears a credit-card logo.
Please let me know where I went wrong when I thought from the study's sample perspective.
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Studies in restaurants show that the tips left by customers who pay th 04 Jan 2025, 00:19
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P1: 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.
P2: Conclusion 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.

C: Credit card logo make the credit card holder willing to spend more due to the psychological effect

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.
So, effect is not limited to the credit card holders only, so it actually weakens the argument, as people who dont have credit card how they can get the spending power excess feeling.

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.
(yes, as by seeing the credit card logo, it they get the feeling of increased spending power they will give more tip, then they also should get the feeling from logo to tip less when they are under financial pressure)
so, it strengthens the argument that is the psychology effect related to the credit card logo

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.
(so weakens the study).

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.
(not relevant comparison)

E. The percentage of restaurant bills paid with a given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.
(not relevant)
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Studies in restaurants show that the tips left by customers who pay th 07 Jan 2025, 11:59
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agrasan
Hi GMATNinja

I am a bit confused with the option B, my reasoning was:

Option B has No Impact, this option is specific about patrons who already pay less using a credit card than when the tray has no logo so these people are not relevant for us as the argument's study focuses on patrons who pay their bill in cash and it tend to be larger when the bill is presented on a tray that bears a credit-card logo.

Please let me know where I went wrong when I thought from the study's sample perspective.
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The word "tend" in the first sentence is crucial. Cash tips aren't ALWAYS larger when the credit-card logo is presented on the tray.

Let's say that 5% of cash customers actually tip less when they see the logo. That's actually consistent with the findings of the study because not EVERYONE tips more in that situation.

And if those 5% are tipping less because the logo reminds them of their LACK of spending power, then that would actually be consistent with the psychologists' hypothesis.

For more on that, check out this post: https://gmatclub.com/forum/studies-in-r ... l#p1982126.
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Studies in restaurants show that the tips left by customers who pay th 26 Jul 2025, 01:05
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I my eyes, B hints at a confounding variable causing the effect.

If credit debt status (in debt or not) influences tipping, then isn't that the real cause, not the logo?
So doesn’t that make B a weakener, since it introduces a third variable?

KarishmaB, it would be great to get some experts advice regarding this matter.

Does a confounding variable in a causal claim weaken or strengthen the causal claim ?

X CAUSES Y

B) X CAUSES T WHICH CAUSES Y.
singh_amit19
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 a 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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Studies in restaurants show that the tips left by customers who pay th 04 Aug 2025, 23:15
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A confounding variable is a hidden, unaccounted variable. It weakens the conclusion of the study.

Here there is a sequential relation. CC status is not a confounding variable.
The logo reminds one of the status and that makes people tip more or less. So logo leads to more or less tips - perfectly fine.

This is true for most causes. We can find a chain of reasoning in most cases. e.g.
Exercise causes slimming - this makes sense. We cannot argue that exercise leads to energy consumption which leads to body burning fat which leads to slimming so the cause is 'fat burning,' not exercise. After all, exercise causes the fat burning in the first place.



INprimesItrust
I my eyes, B hints at a confounding variable causing the effect.

If credit debt status (in debt or not) influences tipping, then isn't that the real cause, not the logo?
So doesn’t that make B a weakener, since it introduces a third variable?

KarishmaB, it would be great to get some experts advice regarding this matter.

Does a confounding variable in a causal claim weaken or strengthen the causal claim ?

X CAUSES Y

B) X CAUSES T WHICH CAUSES Y.
singh_amit19
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 a 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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Studies in restaurants show that the tips left by customers who pay th 06 Aug 2025, 10:46
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KarishmaB ,

Many thanks !
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Studies in restaurants show that the tips left by customers who pay th 14 Aug 2025, 21:17
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Hello Bunuel KarishmaB egmat GMATNinja
I selected AC A.
Reasoning
The passage mentions tips given by "Cash payers" is higher when tray has logo. The reasoning mentioned talks about credit card holders paying with cash. To fill the gap of cash payers without credit card I selected AC A.

Could someone please share the flaw in my reasoning?
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Studies in restaurants show that the tips left by customers who pay th 15 Aug 2025, 19:40
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Mehakgyl
Hello Bunuel KarishmaB egmat GMATNinja
I selected AC A.
Reasoning
The passage mentions tips given by "Cash payers" is higher when tray has logo. The reasoning mentioned talks about credit card holders paying with cash. To fill the gap of cash payers without credit card I selected AC A.

Could someone please share the flaw in my reasoning?
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Hypothesis: 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.

Option (A) weakens the hypothesis, if at all. The hypothesis is that looking at the logo, they are reminded that their spending power is more than the cash in their pocket. That they can use their card to pay for things. That is why they tip more.

If it is true that the effect noted in the studies is not limited to patrons who have credit cards (option A) then they are not paying more because they are reminded that their purchasing more is more. After all, those who do not have credit cards are also paying more by looking at the logo. So it looks like credit card logo impacts people's psyche is a different way in that case. So it weakens that they pay more because they are reminded that their purchasing power is more.
That is why (A) is incorrect.
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Studies in restaurants show that the tips left by customers who pay th 02 Sep 2025, 21:02
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I would like to share a lesson learned from this CR question about decoding GMAT patterns.

Sometimes, you don't have to directly strengthen by omitting the alternative cause or by showing nothing else bought that particular conclusion; instead, you can show that the causal relationship is standing.

Example: X caused Y.
You can also strengthen this by saying that if increase in X (leads to) increases in Y, or if decreases in X (leads to) decrease in Y.
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