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# The restaurant business wastes more energy than any other

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29 Apr 2013, 11:35
The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the
\$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment.
At the same time, approximately 70 percent of restaurants in the United States are small businesses that are
usually too cash poor to invest in energy-efficient technology. Which of the following statements draws the most
reliable conclusion from the information above?

1. The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately
30 percent.

2. No industry in the United States spends greater than \$10 billion each year on energy.

3. By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will
a large restaurant.

4. Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered.

5. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant
industry.
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Updated on: 30 Apr 2013, 14:55
1
Fact: The restaurant business wastes more energy than any other industry
Fact: 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment
Fact: 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology

1. The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.
Wrong. No information to conclude that restaurant industry can save 30% energy cost.

2. No industry in the United States spends greater than \$10 billion each year on energy.
Wrong. The stimulus only says: The restaurant business wastes more energy than any other industry in the United States ==> wastes # spend

3. By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.
Wrong. small restaurants account for 70% of total restaurant. It doesn't mean they account for larger percentage of energy costs.

4. Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
Wrong. Shell game. 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. KEY WORDS.
It means energy by the restaurant industry each year is also squandered by other reasons. ==> the amount of energy that is not squandered should be less than \$2 billion.

Be very careful with this kind of trap.
Example:
80% of income is spent for food --> 20% of income is not spent ==> Totally wrong.

5. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.
Correct.

Hope it helps.
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Originally posted by pqhai on 29 Apr 2013, 23:05.
Last edited by pqhai on 30 Apr 2013, 14:55, edited 2 times in total.
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30 Apr 2013, 06:07
All duplicate threads on this topic have been merged.

Please check and follow the Guidelines for Posting in Verbal GMAT forum before posting anything in the forum.
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30 Apr 2013, 06:39
I think D because " replacement" is out of the context.
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30 Apr 2013, 07:01
Remember in these situations you have to be able to infer something that "must be true". This one is tricky as E is correct but D is very tempting as well, but let's look for scenarios that could still be true given the (relevant) information:

The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the
\$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment
...
D. Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
E. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.

For D, could you imagine a scenario in which 80% of the \$10B is squandered by the use of inefficient equipment and say 5% is squandered on something else, say paying environmental fees or licensing for your equipment? Sure, why not? This money could still be squandered even if it wasn't spent on inefficient equipment. Tempting, but this answer choice doesn't HAVE to be true.

For E, since we know the restaurant industry spends \$10B on energy every year, if we could save 5,000,000,001\$ we know this would be the greatest amount it could possibly save, i.e. 50%+1. If a sector is over 50%, it must necessarily represent the largest possible savings. Thus E must be true.

On questions like this you will often be torn between two choices. Carefully considering all options will usually lead you to discovering the difference between the two choices and at least one case in which the incorrect answer could be falst.

Hope this helps!
-Ron
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30 Apr 2013, 11:09
pmenon wrote:
The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. At the same time, approximately 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology.

Which of the following statements draws the most reliable conclusion from the information above

(A) The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.
(B) No industry in the United States spends greater than \$10 billion each year on energy.
(C) By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.
(D) Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
(E) The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.

I don't go with E:
We have no idea about other potential sources of energy savings. None of them are mentioned, and what if the industry squanders more on petrol or inefficient advertising?

As for D (which I've chosen):
The argument states that 8 out of 10 million spent on energy is squandered. The D says that 2 out of 10 million spent on energy is not squandered. If there was no restriction to the area of squander, D would be false. But IMO D is restricted more than E, thus my choice.
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30 Apr 2013, 11:32
VeritasPrepRon wrote:
For E, since we know the restaurant industry spends \$10B on energy every year, if we could save 5,000,000,001\$ we know this would be the greatest amount it could possibly save, i.e. 50%+1. If a sector is over 50%, it must necessarily represent the largest possible savings. Thus E must be true.

What if the industry spends \$100B on lawn mowers each year? Of which 90% is squandered due to lack of lawns?

What is the difference between the logic in above contest and in this reasoning:
VeritasPrepRon wrote:
For D, could you imagine a scenario in which 80% of the \$10B is squandered by the use of inefficient equipment and say 5% is squandered on something else, say paying environmental fees or licensing for your equipment? Sure, why not? This money could still be squandered even if it wasn't spent on inefficient equipment. Tempting, but this answer choice doesn't HAVE to be true.

I could manipulate:
Quote:
For E, could you imagine a scenario in which 80% of the \$100B is squandered by the use of inefficient lawn mowers and say 90% could be saved? Sure, why not? This money could also be saved and would amount much greater than potential energy savings. Tempting, but this answer choice doesn't HAVE to be true.

What am I missing?
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30 Apr 2013, 11:44
1
Hi HumptyDumpty, the entire sentence is important, and answer choice E says "The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry."

They could save \$100B on lawns, but that doesn't have anything to do with a source of energy savings. Since the question has given us 80% of the amount of energy spent on the budget, this must necessarily be where the majority of the savings can come from.

Beware logic like "D is more restrictive than E", inference questions must be true, 100% of the time. If you find one scenario that doesn't work for D and 2 that don't work for E, that doesn't mean D is better. If you can find faults in two different choices, you may need to try looking at them the right way because there's a missing piece of information or an extra assumption that is erroneous.

Hope this helps!
-Ron
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23 Sep 2013, 10:54
sanjay_gmat wrote:
pmenon wrote:
The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. At the same time, approximately 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology.

Which of the following statements draws the most reliable conclusion from the information above

A. The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.

B. No industry in the United States spends greater than \$10 billion each year on energy.

C. By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.

D. Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered.

E. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.

I think D is more reliable than E.

The question said that 80% (or 8 bn) is squandered "by inefficient equipment". This doesn't mean that the other 20% (or\$ 2 bn) is NOT squandered. it could have been squandered by something else, other than inefficient equipment.
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23 Sep 2013, 21:03
pmenon wrote:
The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. At the same time, approximately 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology.

Which of the following statements draws the most reliable conclusion from the information above

(A) The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.
(B) No industry in the United States spends greater than \$10 billion each year on energy.
(C) By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.
(D) Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
(E) The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.

As with any CR question, listing down the premises:

i) The restaurant business wastes more energy than any other industry in the US.
ii) Majority of amount spent on energy is squandered due to inefficient equipment use.
iii) As such, Majority of restaurants being poor can't invest in energy efficient technology.

Options and POE:

(A) - No premises support this conclusion - eliminated.
(B) - The premises state that the restaurant wastes[ more energy - eliminated.
(C) - The premises do not support this conclusion - eliminated.
(D) - Too obvious a conclusion; but does not take in to account other premise - eliminated.
(E) - Yes. All 3 premises can lead to this conclusion reasonably. - IMO E.
Pretty straightforward question, IMO. Any thoughts - do reply; would love to discuss!
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28 Sep 2013, 07:46
dkverma wrote:
I went for D.

E,

Why D, the entire 10 billion is squandered, its just that 80 percent of it stems from inefficient usage of energy. So most of the saving can be achieved by investing in energy efficient appliances for the restaurant industry.

Hence E.
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09 Sep 2014, 17:08
Its E for sure...
The option D is just the reiteration of what has been already mentioned in the argument.

For ex.: Stating "80% of 10 is wasted" is also the same as stating "20% is not wasted".
So option D cannot be a conclusion.
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06 Nov 2016, 20:29
pmenon wrote:
The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. At the same time, approximately 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology.

Type - Inference
Boil it down - restaurant business wastes most energy
-80 % of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment
-70% of the restaurants are small businesses that are too poor to invest in energy efficient tech

(A) The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent. - Incorrect - no such information is provided
(B) No industry in the United States spends greater than \$10 billion each year on energy. - Out of scope - we are only told that restaurant business wastes most energy . There might be other industries that spend more than 10\$ billion per year and are energy efficient.
(C) By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant. - Out of scope
(D) Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered. Incorrect - the remaining 2 billion \$ might be squandered by other means
(E) The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry. Correct

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29 Mar 2017, 20:33
80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment

Hence E
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30 Jun 2017, 17:15
This is still an inference question.
D is not correct because out of the other 2 billion, some money will still be squandered by something other than the equipment.
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07 Jul 2017, 09:25
Imo E
It is only inference that is 100 % true hence it is the only possible solution.
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19 Dec 2017, 23:45
Is not E an extreme answer choice? I didn't select E as potential answer choice ( I selected D ) bcz it used 'Largest'. So what is the explanation for that ?
Re: The restaurant business wastes more energy than any other &nbs [#permalink] 19 Dec 2017, 23:45

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