It is currently 17 Dec 2017, 15:37

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Surveys show that every year only 10 percent of cigarette

Author Message
SVP
Joined: 08 Nov 2006
Posts: 1552

Kudos [?]: 211 [0], given: 1

Location: Ann Arbor
Schools: Ross '10
Surveys show that every year only 10 percent of cigarette [#permalink]

### Show Tags

02 Jan 2007, 11:01
00:00

Difficulty:

(N/A)

Question Stats:

100% (00:00) correct 0% (00:00) wrong based on 3 sessions

### HideShow timer Statistics

Surveys show that every year only 10 percent of cigarette smokers switch brands. Yet the manufacturers have been spending an amount equal to 10 percent of their gross receipts on cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to switch brands did not pay, and that cigarette companies would have been no worse off economically if they had dropped their advertising.

Of the following, the best criticism of the conclusion that inducing cigarette smokers to switch brands did not pay is that the conclusion is based on
(A) computing advertising costs as a percentage of gross receipts, not of overall costs
(B) past patterns of smoking and may not carry over to the future
(C) the assumption that each smoker is loyal to a single brand of cigarettes at any one time
(D) the assumption that each manufacturer produces only one brand of cigarettes
(E) figures for the cigarette industry as a whole and may not hold for a particular company

Explanations will be much appreciated.
_________________

My Profile/GMAT/MBA Story
http://www.gmatclub.com/forum/111-t59345

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 211 [0], given: 1

Senior Manager
Joined: 04 Nov 2006
Posts: 257

Kudos [?]: 264 [0], given: 0

Location: California

### Show Tags

02 Jan 2007, 14:09
i feel E..

argument is saying what is true for whole will also be true for the parts.. hence will be a good criticism..

Kudos [?]: 264 [0], given: 0

Director
Joined: 24 Aug 2006
Posts: 743

Kudos [?]: 212 [0], given: 0

Location: Dallas, Texas

### Show Tags

02 Jan 2007, 20:44
I would not have selected E on test day (though OA is E) because of this statement "Yet the manufacturers have been spending an amount equal to 10 percent of their gross receipts". It is just not one company that is spending money; it is definitely a larger segment. Hence the criticism that "what is true for a group may not true for an individual" is not applicable (or at least that is what I thought).

Bottomline : My score is zero on this question.
_________________

"Education is what remains when one has forgotten everything he learned in school."

Kudos [?]: 212 [0], given: 0

Manager
Joined: 03 Dec 2006
Posts: 73

Kudos [?]: 6 [0], given: 0

Location: London

### Show Tags

02 Jan 2007, 22:21
E

The argument implies that cigarette companies have not gained more than what they have lost in costs. This can be criticized by E; some companies may have spent much less than 10% and have therefore gained from their promotion spending.

Kudos [?]: 6 [0], given: 0

Director
Joined: 28 Dec 2005
Posts: 915

Kudos [?]: 59 [0], given: 0

### Show Tags

03 Jan 2007, 03:35
I liked how palihu criticized this question... I chose C for this.

http://www.gmatclub.com/phpbb/viewtopic ... tch+brands

Kudos [?]: 59 [0], given: 0

SVP
Joined: 08 Nov 2006
Posts: 1552

Kudos [?]: 211 [0], given: 1

Location: Ann Arbor
Schools: Ross '10

### Show Tags

03 Jan 2007, 06:55
hsampath wrote:
I liked how palihu criticized this question... I chose C for this.

http://www.gmatclub.com/phpbb/viewtopic ... tch+brands

Agree with hsampath and Swagatalakshmi.

I was not happy with the OA(E) and thats the reason I posed the question. I picked C too because I had to pick one.

Thanks hsampath for the link to pelihu's post.
_________________

My Profile/GMAT/MBA Story
http://www.gmatclub.com/forum/111-t59345

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 211 [0], given: 1

Senior Manager
Joined: 24 Nov 2006
Posts: 349

Kudos [?]: 28 [0], given: 0

### Show Tags

03 Jan 2007, 16:04
With E you are stating clearly that the conclusion is not reliable. IÂ´d say itÂ´s E.

Kudos [?]: 28 [0], given: 0

03 Jan 2007, 16:04
Display posts from previous: Sort by

# Surveys show that every year only 10 percent of cigarette

Moderators: GMATNinjaTwo, GMATNinja

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.