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Studies in restaurants show that the tips left by customers who pay th

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Re: Studies in the resturants show that the tips left by [#permalink]

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New post 13 Oct 2010, 16:36
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I agree with B.
B) Patrons who are under financial pressure from their credit casd 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.

the POINT is that the logo reminds of customer' spending power.

in the question, it says people are willing to tip more when seeing the logo because it reminds of their spending power.

Same thing for B. People are not likely to tip a lot when they see the logo because it reminds of their spending power too. But the power is weak in this case.

so let turn back to the question

see logo when rich -> tip more
see logo when poor -> tip less

it is the logic that connects those two: see logo reminds of your spending power

Hope you can understand what i am trying to illustrate here!

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Re: Studies in the resturants show that the tips left by [#permalink]

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This is B, and I think I see why people are getting confused.

gmatprep09 wrote:
Studies in the resturants show that the tips left by cutomers who pay their bill in cash tent 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 becuase it remides 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?

Customers who pay with cash see the credit card logo on their bill and leave a bigger tip than those who do not see a credit card logo. The hypothesis is that the customers who see the credit card logo subconsciously think, "Hey, that's right, I own a credit card! I can use my cash more freely because my Visa has my back! I'll leave a bigger tip because the cash doesn't matter as much to me!" So what would help support this hypothesis?

A) The effect notes in the studies is not limited to patrons who have credit cards. This would weaken the argument, because the point is that people are reminded of their credit cards and thus leave bigger tips. If people who don't even own credit cards experience the same phenomenon, then that hypothesis pretty much goes right out the window.
B) Patrons who are under financial pressure from their credit casd 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. So people who are subconsciously reminded of the extra spending power their credit card provides tend to leave a bigger cash tip, because their cash doesn't mean as much to them. B adds to this, telling us that people who have a lot of credit card debt will leave a SMALLER tip in this same situation. This provides evidence because it shows that it is indeed the credit card logo making the customers think of their credit cards, and affecting the size of their tip.
C) In virtually all of the cases in the studies, the patrons who paid bills in cash did not posses s credit card. This would weaken the hypothesis, because the psychologists claim that the patrons paying in cash are reminded of their credit card spending power.
D) In general, resturant patrons who pay their bills in cash leave larger tips than do those who pay by credit card. This would weaken the hypothesis, because it says that cash customers just leave larger tips in general, regardless of the appearance of a credit card logo.
E) The percentage of resturant 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 presented. Irrelevant. We're only discussing customers paying with cash, not with credit cards.
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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singh_amit19 wrote:
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.

I picked A........views???


I gout stumped while choosing B as i thought its kind of weird statement
but later on after reading i found that this is exact opposite of what we want
and exact opposite is appropriate.........
as people when reminded of debt paid lesser tip (which shows the effect of logo on the tray)

hope i got it right now :? :?
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 09 Dec 2011, 02:25
Conclusion: simply seeing a credit-card logo makes many credit-card holders willing to spend more

Option B says that people who are in debt are reminded of the debt when they see the credit card logo on the bill. That is why they tip less. However, it also implies that the negation is true.
If these people had not been in debt, then these people would have tipped more. This strengthens the argument. Thus option B indirectly strengthens the hypothesis.

Is this understanding correct? Please explain because I got this answer wrong. :(

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Re: Q14: Studies in restaurants show that the tips left by [#permalink]

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kapsycumm wrote:
I still don't get it. Even if the correlation is there, it is a reversed one and it doesn't seem to strengthen the argument.

Argument:- Customers, who are credit card holders, pay with cash and tend to tip larger because of the logo on the tray.
Therefore, logo tray = more tip.
Contender(B):- logo tray = less tip ...no logo tray = more tip.


sanjoo wrote:
B or E..

B still not satifying me..!!
who r under financial pressure will pay tip less?? seems like its irrevalent..

E luks gud to me


Let's look at the argument:

Argument: Studies show that cash tips left by customers are larger when the bill is presented on a tray that bears a credit-card logo.

Why would that be? Why would there be a difference when the tray has no logo and when the tray has a credit card logo?

Psychologists' hypothesize that seeing a credit-card logo reminds people of the spending power given by the card they have (and that their spending power exceeds the cash they have right now).

We have to support the psychologists' interpretation.

Say, I change the argument a little and add a line:

Argument: Studies show that cash tips left by customers are larger when the bill is presented on a tray that bears a credit-card logo. Patrons under financial pressure from 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.

Now, does the psychologists' interpretation make even more sense. Understand that the psychologists' interpretation is only that 'seeing a logo reminds people of their own credit card status'. The part 'that their spending power exceeds the cash they have right now' explains the higher tips. If we are given that some tip more on seeing that card logo and some tip less on seeing it, it makes sense, right? Different people have different credit card obligation status. Hence, people are reminded of their own card obligation status and they tip accordingly. Hence, option (B) makes the probability of psychologists' interpretation being true stronger because it tells you that in case of very high card obligations, customers tip less. This is what you would expect if the psychologists' interpretation were correct.

It's something like this:
Me: After 12 hrs of night time sleep, I can't study.
Your theory: Yeah, because your sleep pattern is linked to your level of concentration. After a long sleep, your mind is still muddled and lazy so you cant study.
Me: After 4 hrs of night time sleep, I can't study either.

Does your theory make more sense? Sure! You said 'sleep pattern is linked to your level of concentration'. If I sleep too much, my concentration gets affected. If I sleep too little, again my concentration gets affected. So your theory that 'sleep pattern is linked to your level of concentration' certainly makes more sense.


Option (E) is incorrect.
(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 options supports the hypothesis that card logo reminds people of their own card (not of their card obligations). The psychologists' interpretation talks about the logo reminding people of their card status (high spending power or high obligations).
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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singh_amit19 wrote:
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.

I picked A........views???


Got a PM to respond to this.

I can see some great explanations above. Let me add my two cents to the discussion.

Argument Analysis

My very first observation of the given passage is that it is a causal argument. A causal argument is one in which we attribute the cause of some past event, say X, to some past event or a rule or something else, say Y. In other words, we say that X has caused Y or that X led to Y

In the given argument, we have

Y: 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
X: 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

As we can see, even X has a causal structure and can be written as:
Credit card reminds credit card holders that their spending power exceeds the cash they have immediately available ---->> (leads to) seeing a credit-card logo makes many credit-card holders willing to spend more ---->>> the tips left by customers who pay their bill in cash is larger when the bill is presented on a tray that bears a credit-card logo

In essence, the hypothesis is that that credit card reminds people of their high spending power - this leads them to spend more - this leads in higher tips.

Prethinking

This is a strengthen question, as is clear from the question stem. We need to strengthen the psychologist's hypothesis. Since this is causal argument where we say that X is the reason for Y, we can strengthen it by saying that
1. There is no Z which can be the reason for Y OR
2. If we increase X while keeping everything else same, we'll increase Y - This could be indicated by saying that when customer see the credit card logo of the company they hold credit card of, they tip more than that when they see credit card logos of other companies.
3. IF we remove X while keeping everything else same, we'll not have Y - i.e. if the credit card logo doesn't remind people of their higher purchasing power, they would not tip higher.

With this pre-thinking, let's move over to the option statements:

Analysis of option statements

A. The effect noted in the studies is not limited to patrons who have credit cards. - Ok. But do people who don't have credit cards tip higher or lower than people with credit cards? The option statement doesn't provide this. Without this information, this statement doesn't have an impact on the hypothesis. If it had stated that people without credit cards tip lower than others when presented with trays with credit card logo, then it would have strengthened the hypothesis.

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. - This is interesting. This says that guys under credit card obligations tend to tip less when presented with trays with credit card logo. This kind of guy has lesser spending power than his available cash, exactly opposite to the case considered in the argument and this guy tips less, which is also exactly opposite the case in the argument. This kind of behavior is expected if the hypothesis holds. Since the hypothesis says that credit card logo reminds one of his spending power - a guy with good credit limit and low credit card obligations is expected to spend more and a guy with high credit card obligations is expected to spend less. Therefore, the given statement provides an evidence that the hypothesis holds in a different scenario. Therefore, this is the CORRECT option.

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. - This is irrelevant comparison. We are not concerned with the payment method here.

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. - Again, we are not concerened how the payment is made.

Therefore, the correct choice is Option B.

Hope this helps :)

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

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ok got it this is like cause effect... if x happens y happens and if x doesnt happen y doesnt happen.
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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singh_amit19 wrote:
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.

I picked A........views???


There has been a detailed discussion on this question before. Here are my thoughts:

Let's look at the argument:

Argument: Studies show that cash tips left by customers are larger when the bill is presented on a tray that bears a credit-card logo.

Why would that be? Why would there be a difference when the tray has no logo and when the tray has a credit card logo?

Psychologists' hypothesize that seeing a credit-card logo reminds people of the spending power given by the card they have (and that their spending power exceeds the cash they have right now).

We have to support the psychologists' interpretation.

Say, I change the argument a little and add a line:

Argument: Studies show that cash tips left by customers are larger when the bill is presented on a tray that bears a credit-card logo. Patrons under financial pressure from 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.

Now, does the psychologists' interpretation make even more sense. Understand that the psychologists' interpretation is only that 'seeing a logo reminds people of their own credit card status'. The part 'that their spending power exceeds the cash they have right now' explains the higher tips. If we are given that some tip more on seeing that card logo and some tip less on seeing it, it makes sense, right? Different people have different credit card obligation status. Hence, people are reminded of their own card obligation status and they tip accordingly. Hence, option (B) makes the probability of psychologists' interpretation being true stronger because it tells you that in case of very high card obligations, customers tip less. This is what you would expect if the psychologists' interpretation were correct.

It's something like this:
Me: After 12 hrs of night time sleep, I can't study.
Your theory: Yeah, because your sleep pattern is linked to your level of concentration. After a long sleep, your mind is still muddled and lazy so you cant study.
Me: After 4 hrs of night time sleep, I can't study either.

Does your theory make more sense? Sure! You said 'sleep pattern is linked to your level of concentration'. If I sleep too much, my concentration gets affected. If I sleep too little, again my concentration gets affected. So your theory that 'sleep pattern is linked to your level of concentration' certainly makes more sense.


Option (E) (the one that confuses people) is incorrect.
(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 options supports the hypothesis that card logo reminds people of their own card (not of their card obligations). The psychologists' interpretation talks about the logo reminding people of their card status (high spending power or high obligations).
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 26 Mar 2013, 03:08
egmat wrote:
singh_amit19 wrote:
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.

I picked A........views???


Got a PM to respond to this.

I can see some great explanations above. Let me add my two cents to the discussion.

Argument Analysis

My very first observation of the given passage is that it is a causal argument. A causal argument is one in which we attribute the cause of some past event, say X, to some past event or a rule or something else, say Y. In other words, we say that X has caused Y or that X led to Y

In the given argument, we have

Y: 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
X: 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

As we can see, even X has a causal structure and can be written as:
Credit card reminds credit card holders that their spending power exceeds the cash they have immediately available ---->> (leads to) seeing a credit-card logo makes many credit-card holders willing to spend more ---->>> the tips left by customers who pay their bill in cash is larger when the bill is presented on a tray that bears a credit-card logo

In essence, the hypothesis is that that credit card reminds people of their high spending power - this leads them to spend more - this leads in higher tips.

Prethinking

This is a strengthen question, as is clear from the question stem. We need to strengthen the psychologist's hypothesis. Since this is causal argument where we say that X is the reason for Y, we can strengthen it by saying that
1. There is no Z which can be the reason for Y OR
2. If we increase X while keeping everything else same, we'll increase Y - This could be indicated by saying that when customer see the credit card logo of the company they hold credit card of, they tip more than that when they see credit card logos of other companies.
3. IF we remove X while keeping everything else same, we'll not have Y - i.e. if the credit card logo doesn't remind people of their higher purchasing power, they would not tip higher.

With this pre-thinking, let's move over to the option statements:

Analysis of option statements

A. The effect noted in the studies is not limited to patrons who have credit cards. - Ok. But do people who don't have credit cards tip higher or lower than people with credit cards? The option statement doesn't provide this. Without this information, this statement doesn't have an impact on the hypothesis. If it had stated that people without credit cards tip lower than others when presented with trays with credit card logo, then it would have strengthened the hypothesis.

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. - This is interesting. This says that guys under credit card obligations tend to tip less when presented with trays with credit card logo. This kind of guy has lesser spending power than his available cash, exactly opposite to the case considered in the argument and this guy tips less, which is also exactly opposite the case in the argument. This kind of behavior is expected if the hypothesis holds. Since the hypothesis says that credit card logo reminds one of his spending power - a guy with good credit limit and low credit card obligations is expected to spend more and a guy with high credit card obligations is expected to spend less. Therefore, the given statement provides an evidence that the hypothesis holds in a different scenario. Therefore, this is the CORRECT option.

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. - This is irrelevant comparison. We are not concerned with the payment method here.

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. - Again, we are not concerened how the payment is made.

Therefore, the correct choice is Option B.

Hope this helps :)

Thanks,
Chiranjeev

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Re: Studies in restaurants shows that the tips left by customers [#permalink]

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New post 29 Mar 2013, 17:53
I originally had B as weakening the argument, and E as the correct answer. After reading the post, I can see why B can be correct, Im still having an issue seeing it in the argument, the question states that many credit card holders willing to spend more because it reminds them.....(first question, is this the conclusion?, second, the effect is there by the use of the logo on the tray, but the tip is less? Can you clarify what the Conclusion, and what the premise is? Maybe I'm confusing the (p) as the (c)?

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By eliminating options, i got option B. But i didn't understand how B is strengthening the conclusion. Can someone explain ?

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Hi,

B supports the argument because it provides more evidence that the credit card logo had an effect.

If it can be shown that people who have debts on credit cards pay less, it would support the fact that those with available credit on cards would pay more...

Does that make sense?

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Re: Studies in restaurants shows that the tips left by customers [#permalink]

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New post 29 Apr 2013, 22:18
plumber250 wrote:
Hi,

B supports the argument because it provides more evidence that the credit card logo had an effect.

If it can be shown that people who have debts on credit cards pay less, it would support the fact that those with available credit on cards would pay more...

Does that make sense?

James



hi,

for options b and e, both support that credit card logo will have some effect on customers, e says, a specific logo increases the sales,
and b says, ppl who have obligations will pay less, but none of them clearly tells, at which point do, ppl pay more tips. though w can infer from option B.
but can this be a reason to eliminate E ???

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I think I'll add my two cents to the discussion.

Let's start with understanding the passage.

Argument Analysis

My very first observation of the given passage is that it is a causal argument. A causal argument is one in which we attribute the cause of some past event, say X, to some past event or a rule or something else, say Y. In other words, we say that X has caused Y or that X led to Y

In the given argument, we have

Y: 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
X: 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

As we can see, even X has a causal structure and can be written as:
Credit card reminds credit card holders that their spending power exceeds the cash they have immediately available ---->> (leads to) seeing a credit-card logo makes many credit-card holders willing to spend more ---->>> the tips left by customers who pay their bill in cash is larger when the bill is presented on a tray that bears a credit-card logo

In essence, the hypothesis is that that credit card reminds people of their high spending power - this leads them to spend more - this leads in higher tips.

Prethinking

This is a strengthen question, as is clear from the question stem. We need to strengthen the psychologist's hypothesis. Since this is causal argument where we say that X is the reason for Y, we can strengthen it by saying that
1. There is no Z which can be the reason for Y OR
2. If we increase X while keeping everything else same, we'll increase Y - This could be indicated by saying that when customer see the credit card logo of the company they hold credit card of, they tip more than that when they see credit card logos of other companies.
3. IF we remove X while keeping everything else same, we'll not have Y - i.e. if the credit card logo doesn't remind people of their higher purchasing power, they would not tip higher.

With this pre-thinking, let's move over to the option statements:

Analysis of option statements

A. The effect noted in the studies is not limited to patrons who have credit cards. - Ok. But do people who don't have credit cards tip higher or lower than people with credit cards? The option statement doesn't provide this. Without this information, this statement doesn't have an impact on the hypothesis. If it had stated that people without credit cards tip lower than others when presented with trays with credit card logo, then it would have strengthened the hypothesis.

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. - This is interesting. This says that guys under credit card obligations tend to tip less when presented with trays with credit card logo. This kind of guy has lesser spending power than his available cash, exactly opposite to the case considered in the argument and this guy tips less, which is also exactly opposite the case in the argument. This kind of behavior is expected if the hypothesis holds. Since the hypothesis says that credit card logo reminds one of his spending power - a guy with good credit limit and low credit card obligations is expected to spend more and a guy with high credit card obligations is expected to spend less. Therefore, the given statement provides an evidence that the hypothesis holds in a different scenario. Therefore, this is the CORRECT option.

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. - This is irrelevant comparison. We are not concerned with the payment method here.

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. - Again, we are not concerened how the payment is made.

Therefore, the correct choice is Option B.

Hope this helps :)

Thanks,
Chiranjeev
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 13 Oct 2013, 07:35
Studies in restaurants show thatthe 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 a credit-card logo than when the tray has no logo.
(0 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 whopay 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 presented.

Can anyone explain the solution with the reasoning ?
Thanks in advance
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 13 Oct 2013, 08:17
This question has already been discussed very nicely by e-gmat and Karishma in the following thread:

studies-in-restaurants-show-that-the-tips-left-by-customers-53061.html
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Re: Studies in the resturants show that the tips left by [#permalink]

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

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New post 07 Apr 2014, 04:47
kedusei wrote:
I dont understand B, if someone sees the credit card logo then decides to tip less, how does that strengthen the argument.


I have explained it here: studies-in-restaurants-show-that-the-tips-left-by-customers-53061.html#p1195719
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 07 Sep 2014, 04:48
This question goes beyond normal reasoning. If you don't have money, or have some financial pressure, it's not important wether you see that logo or not, it doesn't change the fact that you're out of money......... just a weird question

Update 2015 :-D :
I still don't like this question, but this time I've picked the correct answer by the method of elimination:

A. The effect noted in the studies is not limited to patrons who have credit cards --> Weakens the 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 --> still don't have a 100% understanding for this answer, but other choices had just blatant errors...... It's just not a clear answer, we need to make 1 more assumtion to make it sound....[that person has lesser spending power than his available cash] / if you have -100$ (with 500$ Limit) and 5$ in the pocket, then, your spending power can still exceed your cash in the pocket 400$>100$. I have not found any reasonable explanation for (B) anywhere.[/color]

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards --> weakens the argument

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card --> weakens the argument

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--> nobody talks about a particular brand in the argument.
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