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The Public Transportation Authority (PTA) cannot fulfill

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BSchool Forum Moderator
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Status: Transforming Educational System
Joined: 21 Sep 2016
Posts: 352

Kudos [?]: 133 [0], given: 54

Location: India
Concentration: Nonprofit, Social Entrepreneurship
GMAT 1: 650 Q50 V27
GRE 1: 319 Q170 V149
WE: Education (Non-Profit and Government)
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The Public Transportation Authority (PTA) cannot fulfill [#permalink]

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New post 03 Nov 2017, 14:11
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

79% (01:28) correct 21% (01:56) wrong based on 57 sessions

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Winston: The Public Transportation Authority (PTA) cannot fulfill its mandate to operate without a budget deficit unless it eliminates service during late-night periods of low ridership. Since the fares collected during these periods are less than the cost of providing the service, these cuts would reduce the deficit and should be made. Transit law prohibits unauthorized fare increases, and fare-increase authorization would take two years.
Ping: Such service cuts might cost the PTA more in lost fares than they would save in costs, for the PTA would lose those riders who leave home during the day but must return late at night. Thus the PTA would lose two fares while realizing cost savings for only one leg of such trips.

Which one of the following, if true, most strongly supports Ping’s conclusion?
(A) Over 23 percent of the round trips made by PTA riders are either initiated or else completed during late-night periods.
(B) Reliable survey results show that over 43 percent of the PTA’s riders oppose any cut in PTA services.
(C) The last time the PTA petitioned for a 15 percent fare increase, the petition was denied.
(D) The PTA’s budget deficit is 40 percent larger this year than it was last year.
(E) The PTA’s bus drivers recently won a new contract that guarantees them a significant cash bonus each time they work the late-night shifts.
[Reveal] Spoiler: OA

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Re: The Public Transportation Authority (PTA) cannot fulfill [#permalink]

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New post 03 Nov 2017, 19:26
Question Type: Strengthen

Ping's conclusion: Thus the PTA would lose two fares while realizing cost savings for only one leg of such trips.

(A) Over 23 percent of the round trips made by PTA riders are either initiated or else completed during late-night periods. - Correct. If over 23% of the round trips are either initiated or completed during late-night periods then PTA will lose 23% of the ridership during morning hours and return late night and vice versa.

(B) Reliable survey results show that over 43 percent of the PTA’s riders oppose any cut in PTA services. - Incorrect. Not related to the conclusion.

(C) The last time the PTA petitioned for a 15 percent fare increase, the petition was denied. - Incorrect. Irrelevant.

(D) The PTA’s budget deficit is 40 percent larger this year than it was last year. - Incorrect. Irrelevant.

(E) The PTA’s bus drivers recently won a new contract that guarantees them a significant cash bonus each time they work the late-night shifts. - Incorrect. PTA is not comprised only of bus drivers.

Answer: A

Kudos [?]: 1181 [0], given: 890

Re: The Public Transportation Authority (PTA) cannot fulfill   [#permalink] 03 Nov 2017, 19:26
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The Public Transportation Authority (PTA) cannot fulfill

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