GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 20 Jun 2018, 21:48

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Surveys show that every year only 10 percent of cigarette

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

13 KUDOS received
Manager
Manager
avatar
Joined: 02 May 2008
Posts: 80
Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 15 Jul 2008, 09:20
13
47
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

27% (01:29) correct 73% (01:46) wrong based on 1710 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
9 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 25 Nov 2006
Posts: 251
Re: CR-Cigarette smokers [#permalink]

Show Tags

New post 17 Jul 2008, 06:36
9
1
MamtaKrishnia wrote:
vdhawan1 wrote:
i think E is the correct answer on this one

because it might be possible that the figures ( as in our example) for one company might not reflect the status of the industry


vdhawan1,
The argument says 'manufacturers have been spending' . This means the industry in general not one company.
Also what option E states is
figures for the cigarette industry as a whole and may not hold for a particular company
Which means the concepts that apply to the whole may not always apply to the parts.

This is what confused me too. Because the other way around it makes sense.

In any case OA is E.
But i still understand why :(


Let me try and explain this to you.

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

Break this down.

Conclusion : Inducing cigarette smokers to switch brands did not pay dividends.

Evidence 1 : Surveys show that every year only 10 percent of cigarette smokers switch brands.
Evidence 2 : Cigarette companies would have been no worse off economically if they had dropped their advertising.

What really links the evidence to the conclusion?

1. That the surveys are accurate and that they can be generalised.
2. The companies sales are dependent on the survey(no matter what the company does).

What can turn this around??

Option 1 : Surveys are not accurate
Option 2: Companies sales are not dependent on the survey and they can influence customers to change brands by different strategies.

Option 1 is not there in the answer choices
Option 2 is what E talks about...hence E.

C was close (if 'at any one time' was not present in the answer choice), what it does is weakens what the survey tries to prove, and thus strengthens option 1.
54 KUDOS received
Director
Director
avatar
Joined: 06 Jan 2008
Posts: 525
Re: CR-Cigarette smokers [#permalink]

Show Tags

New post 17 Jul 2008, 07:27
54
2
MamtaKrishnia wrote:
vdhawan1 wrote:
i think E is the correct answer on this one

because it might be possible that the figures ( as in our example) for one company might not reflect the status of the industry


vdhawan1,
The argument says 'manufacturers have been spending' . This means the industry in general not one company.
Also what option E states is
figures for the cigarette industry as a whole and may not hold for a particular company
Which means the concepts that apply to the whole may not always apply to the parts.

This is what confused me too. Because the other way around it makes sense.

In any case OA is E.
But i still understand why :(


Paraphrasing the argument:
Inspite of spending large amounts of money, only 10% switched brands. (in the entire industry)
So, why to spend so much money when you see only 10% results?

Sounds reasonable. But there is a problem.

Lets say the entire smoking industry consists of 2 companies A and B with 50 customers each.
And each company spends money to make customers switch the brand.
So total industry smokers = 100.

After 1 year, lets say 10 smokers from A switched to B.
So, A = 40, B = 60. So we can say in the entire industry, 10 % swithced the brand.
BUT, lets see what B's CEO thinks. TO him, the increase is 20%. ( last year = 50, this year = 60, percentage of increase = 20).
And if you tell him "why to spend so much money when you see only 10% results?" he will not accept it.Because he is seeing good results.
But at the same time, A's CEO may accept the above statement.

So now, the fact(10% swithched brands) which is true to the entire industry is NOT true to the company B. (due to +ve change)

And thats exactly what option E is saying.
nice question. +1 to you.
Intern
Intern
avatar
B
Joined: 02 Feb 2018
Posts: 3
Re: Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 09 Mar 2018, 12:35
Hi.. can you please help me with eliminating option c?
1 KUDOS received
Board of Directors
User avatar
V
Status: Stepping into my 10 years long dream
Joined: 18 Jul 2015
Posts: 3649
Premium Member Reviews Badge CAT Tests
Re: Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 11 Mar 2018, 04:57
1
anujsp wrote:
Hi.. can you please help me with eliminating option c?


Hey anujsp ,

C is very easy to rule out.

We are already given than 10% of the customers are still switching brands. That means atleast some were there who switched.

But C is saying each smoker was loyal. Isn't that breaking the premise?

Hence, C is wrong.

Does that make sense?
_________________

My GMAT Story: From V21 to V40
My MBA Journey: My 10 years long MBA Dream
My Secret Hacks: Best way to use GMATClub
Verbal Resources: All SC Resources at one place | All CR Resources at one place
Blog: Subscribe to Question of the Day Blog

GMAT Club Inbuilt Error Log Functionality - View More.
NEW VISA FORUM - Ask all your Visa Related Questions - here.

How to use an Error Log? Check out my tips!



Find a bug in the new email templates and get rewarded with 2 weeks of GMATClub Tests for free

Manager
Manager
User avatar
G
Joined: 16 Sep 2016
Posts: 223
WE: Analyst (Health Care)
CAT Tests
Re: Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 11 Mar 2018, 05:52
abhimahna wrote:
anujsp wrote:
Hi.. can you please help me with eliminating option c?


Hey anujsp ,

C is very easy to rule out.

We are already given than 10% of the customers are still switching brands. That means atleast some were there who switched.

But C is saying each smoker was loyal. Isn't that breaking the premise?

Hence, C is wrong.

Does that make sense?


I think we rule out C more so by the fact that it helps strengthen the conclusion rather than weaken it as is the question prompt. Even though you are correct in pointing out that each smoker is not loyal to one brand due to the fact that 10% are changing it.

E was harder to digest as OA.

Is it only by the virtue of " bad among the worst " that E ends up weakening the conclusion?
Board of Directors
User avatar
V
Status: Stepping into my 10 years long dream
Joined: 18 Jul 2015
Posts: 3649
Premium Member Reviews Badge CAT Tests
Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 11 Mar 2018, 06:27
Gladiator59 wrote:
I think we rule out C more so by the fact that it helps strengthen the conclusion rather than weaken it as is the question prompt. Even though you are correct in pointing out that each smoker is not loyal to one brand due to the fact that 10% are changing it.

E was harder to digest as OA.

Is it only by the virtue of " bad among the worst " that E ends up weakening the conclusion?


Hey Gladiator59 ,

I would never jump to the conclusion if I see there is any thing that is breaking the premise. This is strictly not allowed. The moment I see each person is disloyal in option C while 10% disloyal in the premise, I will reject C without a second thought.

E very well explains the weakner. It says it may happen that the survey is for the entire industry while concluding the same thing for each of the cigarette company shouldn't be a good idea.

Does that make sense?
_________________

My GMAT Story: From V21 to V40
My MBA Journey: My 10 years long MBA Dream
My Secret Hacks: Best way to use GMATClub
Verbal Resources: All SC Resources at one place | All CR Resources at one place
Blog: Subscribe to Question of the Day Blog

GMAT Club Inbuilt Error Log Functionality - View More.
NEW VISA FORUM - Ask all your Visa Related Questions - here.

How to use an Error Log? Check out my tips!



Find a bug in the new email templates and get rewarded with 2 weeks of GMATClub Tests for free

Manager
Manager
User avatar
G
Joined: 16 Sep 2016
Posts: 223
WE: Analyst (Health Care)
CAT Tests
Re: Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 11 Mar 2018, 06:32
abhimahna wrote:
Gladiator59 wrote:
I think we rule out C more so by the fact that it helps strengthen the conclusion rather than weaken it as is the question prompt. Even though you are correct in pointing out that each smoker is not loyal to one brand due to the fact that 10% are changing it.

E was harder to digest as OA.

Is it only by the virtue of " bad among the worst " that E ends up weakening the conclusion?


Hey Gladiator59 ,

I would never jump to the conclusion if I see there is any thing that is breaking the premise. This is strictly not allowed. The moment I see each person is disloyal in option C while 10% disloyal in the premise, I will reject C without a second thought.

E very well explains the weakner. It says it may happen that the survey is for the entire industry while concluding the same thing for each of the cigarette company shouldn't be a good idea.

Does that make sense?


Hi abhimahna, thanks for writing back.

I realized how E fits in perfectly by reading other answers again.

Also, I get the point you are trying to make. Any option which breaks premise has to be discarded.

Best,
Gladi
Intern
Intern
avatar
B
Joined: 02 Feb 2018
Posts: 3
Re: Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 12 Mar 2018, 08:54
Thanks Abhimahna.. maybe I overthought this one!
Wharton Thread Master
User avatar
D
Joined: 28 Mar 2017
Posts: 1021
Location: India
Concentration: Finance, Technology
GMAT 1: 730 Q49 V41
GPA: 4
Re: Surveys show that every year only 10 percent of cigarette [#permalink]

Show Tags

New post 13 Mar 2018, 01:57
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 --Cost is a cost that the company incurs
(B) past patterns of smoking and may not carry over to the future --The argument doesn't compare future/past patters
(C) the assumption that each smoker is loyal to a single brand of cigarettes at any one time --This doesn't help us in reaching at the conclusion
(D) the assumption that each manufacturer produces only one brand of cigarettes --This doesn't help us in reaching at the conclusion
(E) figures for the cigarette industry as a whole and may not hold for a particular company --Correct. The argument is wrongly comparing 10% figure of ALL the companies and the reaching a conclusion specific to one company
_________________

Kudos if my post helps!

Long And A Fruitful Journey - V21 to V41; If I can, So Can You!!


My study resources:
1. Useful Formulae, Concepts and Tricks-Quant
2. e-GMAT's ALL SC Compilation
3. LSAT RC compilation
4. Actual LSAT CR collection by Broal
5. QOTD RC (Carcass)
6. Challange OG RC
7. GMAT Prep Challenge RC

Re: Surveys show that every year only 10 percent of cigarette   [#permalink] 13 Mar 2018, 01:57
Display posts from previous: Sort by

Surveys show that every year only 10 percent of cigarette

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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®.