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

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

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19 Jun 2015, 03:35
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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 a 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 presented.

Last edited by hazelnut on 29 Apr 2017, 01:08, edited 3 times in total.
Edited the title of the question

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

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19 Jun 2015, 03:59
The question was already discessed here studies-in-the-resturants-show-that-the-tips-left-by-78782.html

Use a proper title to identify the question
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Re: Studies in the resturants show that the tips left by [#permalink]

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28 Oct 2015, 13:14
Claim:.....because it reminds them that their spending power exceeds the cash they have immediately available.

B refutes the claim. If the conclusion would say credit card logo influences his tendency of tips, then B would be sufficient. Unfortunately it is not, and we cannot ASSUME sth from the conclusion.

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

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13 Dec 2015, 10:27
I picked B.

If patrons spend more on tips when paying with credit card because they know that "it reminds them that their spending power exceeds the cash they have immediately available", then when they have financial problems, they will definitely give fewer bucks as tips.

B perfectly explains this situation.

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

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15 Feb 2016, 19:12
mayankgnv 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 a 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 presented.

the psychologist says that consumers spend more because the spending power > cash they have.
in this case, when people have financial problems, they will not give a lot \$ as tips.

A. but we speak about credit cards. thus this one is irrelevant.
B. looks good. are pressed financially by CC-> tip less when logo for CC. they remind themselves that the spending power does not actually exceed the cash they have.
C. those without credit cards/cash are out of scope.
D. compares cash with CC. out
E. specific brand - irrelevant.

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

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26 Mar 2016, 13:38
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

Awesome Explanation, now i am able to solve almost all causal and effect questions. Thanks a lot. :
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Re: Studies in restaurants show that the tips left by customers who pay th [#permalink]

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30 Mar 2016, 23:44
mayankgnv 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 a 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 presented.

For question using causation, the following would hold true and hence can be used as a strengthener. It is one of the correct answer choice out of many correct standard answer choices for cause&effect reasoning questions.

(Cause)Larger tip (when presented bill with Credit card logo) -----> spending power(effect)

(No effect) No Spending power ----> (No cause) lesser tip (when presented bill with Credit card logo)

Only choice B does that.
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Studies in restaurants show that the tips left by customers [#permalink]

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16 Apr 2016, 05:01
I have read all the explanation on this forum but still option B does not make sense.

Q) 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.

Background: OG 15 - in strengthen questions - I have 16 Correct and 1 wrong.

My understanding of this question?

Conclusion says: Credit Card Logo ---> More Tip as compared to one's capacity when presented with a bill with a credit-card logo (because it gives more spending power when they look at logo).

Now look at option B:

X Person: Tip Less -> when presented with a bill with a credit-card logo Vs NO LOGO --> Clearly opposite of the conclusion -> Weakening the argument.

Reasoning: No where in the argument, its mentioned they have financial debt or crises - it simply states people tend to spend more that their capacity when see logo vs no logo.

Can anyone please explain with logical reasoning?

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

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17 Apr 2016, 23:23
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optmistic2016 wrote:
I have read all the explanation on this forum but still option B does not make sense.

Q) 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.

Background: OG 15 - in strengthen questions - I have 16 Correct and 1 wrong.

My understanding of this question?

Conclusion says: Credit Card Logo ---> More Tip as compared to one's capacity when presented with a bill with a credit-card logo (because it gives more spending power when they look at logo).

Now look at option B:

X Person: Tip Less -> when presented with a bill with a credit-card logo Vs NO LOGO --> Clearly opposite of the conclusion -> Weakening the argument.

Reasoning: No where in the argument, its mentioned they have financial debt or crises - it simply states people tend to spend more that their capacity when see logo vs no logo.

Can anyone please explain with logical reasoning?

You missed one important point in the explanation:

The psychologists' interpretation is this: 'seeing a logo reminds people of their own credit status'

It is not just "seeing a logo reminds people of additional ability to spend". People who have a huge credit card debt will not be reminded of additional ability. In fact, they would know that even the cash they have in pocket belongs to the credit card company. So they will tip less. This is an official 700 level question. At this level, you need to go deeper in the argument and understand it really well.

Let me again quote a simpler example I discussed in the previous post:

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

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17 Apr 2016, 23:46
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optmistic2016 wrote:
I have read all the explanation on this forum but still option B does not make sense.

Q) 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.

Background: OG 15 - in strengthen questions - I have 16 Correct and 1 wrong.

My understanding of this question?

Conclusion says: Credit Card Logo ---> More Tip as compared to one's capacity when presented with a bill with a credit-card logo (because it gives more spending power when they look at logo).

Now look at option B:

X Person: Tip Less -> when presented with a bill with a credit-card logo Vs NO LOGO --> Clearly opposite of the conclusion -> Weakening the argument.

Reasoning: No where in the argument, its mentioned they have financial debt or crises - it simply states people tend to spend more that their capacity when see logo vs no logo.

Can anyone please explain with logical reasoning?

Hi,

Consumer psychologists hypothesize that simply seeing a credit-card logo makesmany credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.

there are two things you are missing in the given argument...
1) The argument never says that ALL customers tend to pay more. It says MANY, so there are few who do not pay extra..
2) The argument is NOT ONLY to do with people spending more seeing the Credit card LOGO, BUT ALSO to do withthe effect this logo on their mind...

so--
A) Many of the card holders are reminded of their status as capable of spending more than what they have in their pockets, so they spend more..
B) choice B tells us that there are few customers, who are in financial pressure towards these credit card companies and get reminded of this by seeing the LOGO and tend to give lesser tip..
YES, as you say these customers do exactly opposite of what is being conveyed in argument BUT it follows the same effect and logic on the mind of the customers in different financial situation..

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

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18 Apr 2016, 03:48
Hi Chetan & Karishma,

Thank you both of you. Now it makes more sense after reading both of your comments. I was missing small details - which need more attention and need to think a bit deep with reasoning.

So whats the best strategy to tackle +700 difficulty questions? Practice? Currently, I have 100 % accuracy on OG 600-700 questions but after 700 questions gets tricky and somehow I make mistakes. Can this be improved only with practice or need to apply some magic strategy or practice LSAT questions?

Thanks!

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

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24 Jun 2016, 21:11
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Re: Studies in the resturants show that the tips left by [#permalink]

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15 Jul 2016, 05:59
Premise 1) Show Credit card logo and get more tip.
Conclusion ) Credit card logo reminds "MANY" people about the good state of their financial status. (FROM ARGUMENT:- "many" credit card holders spend more because it reminds them that their spending power exceeds the cash they have immediately available

Support for the conclusion :- OPTION B
Just as seeing credit card logo makes some people realise they have money. It can also make some people realise they don't have enough money.
B) Patrons who are under financial pressure from their credit card obligations tend to tip less when presented with a bill with a credit card logo. (Because they immediately remember that they afford higher tips because they are in debt)

gmatprep09 wrote:
Studies in the restaurants show that the tips left by customers 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 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 notes in the studies is not limited to patrons who have credit cards.
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.
C) In virtually all of the cases in the studies, the patrons who paid bills in cash did not posses s credit card.
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 presented.

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

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21 Sep 2016, 06:57
B is correct.

Had it down to B and E - E is incorrect because it states that it has to be the card logo of the card being used which is not true and going outside the bounds of the argument

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

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07 Oct 2016, 12:53
Studies in the 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 notes 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.
C) In virtually all of the cases in the studies, the patrons who paid bills in cash did not posses s credit card.
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 presented.

I agree with the OA .The issue here is actually the correlation between CC logo and Consumer behaviour . What I did wrong was, looking for an option that supports the point which says "CC logo would increase the cash tip". I couldn't find any options and ended up selecting E , without even reading. I thought B is actually weakening the argument as CC logo causes a decrease in the tip,but here increase/decrease is irrelevant. The point is to find correlation which works both ways. Good pattern! to keep in mind when something is asked about Hypothesis/theory.

I wrote this just to clear the doubts of the people in the same boat as I am in.
Hope this helps!

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

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19 Oct 2016, 06:15
gmatprep09 wrote:
Studies in the restaurants show that the tips left by customers 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 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 notes in the studies is not limited to patrons who have credit cards.
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.
C) In virtually all of the cases in the studies, the patrons who paid bills in cash did not posses s credit card.
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 presented.

- Main element here is that the assumption is that more x -> more y (positive correlation + causality).
- to strengthen the argument we can show the more x->more y or less x -> less y
- the relevant assumption is: more logo-> more reminds spending power-> more tip
- the correct answer choice C says: less logo->less reminds spending power (or reminds limited spending power)->less tip.

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

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11 Mar 2017, 20:30
to me it's B
my reasoning: when customer sees a credit card logo, he tends to spend more but tends to tip less as he knows that he has already spent more so he reduces the tip size , and when a customer sees a bill without a credit card logo he tends to spend more on tips as he know he hasn't spent that much so increases the tip size as well. so option B clearly nails it.

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

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11 Mar 2017, 21:48
Quote:
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.

I would like to disagree. Here the patron has financial pressure and two situations are compared. First situation: he is presented with the bill on a tray with logo-----> he spends less
Second situation: He is presented with bill on a tray without logo----->He spends more

But psychologists says
Quote:
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.
and this should be true always.Situation 1 actually weakens the the argument ,saying that "they spend less"

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

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17 Mar 2017, 18:57
I'm still not a huge fan of the explanation, though I somewhat understand it. I eliminated B because I feel that even someone under "financial pressure" (an ambiguous term, by the way), could be motivated to tip more.

The prompt question says that credit card holders who see a logo are willing to spend more, but it doesn't limit this finding to credit card holders who are not in debt. Many credit card holders carry some level of debt quite regularly and the prompt makes it sound like those people would still tip higher, because they're reminded of their total available spending power (which would include the rest of their credit allocation, for example).

Did anyone else struggle with this?

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

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23 Mar 2017, 05:42
tymon wrote:
I'm still not a huge fan of the explanation, though I somewhat understand it. I eliminated B because I feel that even someone under "financial pressure" (an ambiguous term, by the way), could be motivated to tip more.

The prompt question says that credit card holders who see a logo are willing to spend more, but it doesn't limit this finding to credit card holders who are not in debt. Many credit card holders carry some level of debt quite regularly and the prompt makes it sound like those people would still tip higher, because they're reminded of their total available spending power (which would include the rest of their credit allocation, for example).

Did anyone else struggle with this?

No mate, youu made a mistake here.

Conclusion of the argument is saying the logo reminds them of something and thus those customers are paying more tips.

To strengthen we need to point out that the logo does play an important role.

Option B clearly states that this logo sometimes reminds them of huge debts and thus in that case those customers are not actually paying more.

So, We can Logo on the tray is an important part for tips payment. Hence, B is right.

Notice, you didn't understood the conclusion correctly and thus got confused.
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