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# The restaurant business wastes more energy than any other

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26 Dec 2011, 02:52
E

If you do POE
Then (A,B,C) goes off D also but had it said 2 billion on ‘electricity wastage’ then it would be right,
E is perfect as it state the obvious choice to save electricity wastage , concluding the statement.

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26 Dec 2011, 04:25
+1 for E

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12 May 2012, 00:16
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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.
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17 May 2012, 22:06
E it is - if 80% of the energy spend of the restaurant industry is being squandered by inefficient equipment, it is clear that the replacement of inefficient equipment represents the largest potential resource of energy savings for the restaurant industry
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28 Aug 2012, 10:30
"E" can be wrong.
It says that "The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry."

The arguement says that Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. Suppose this 80 % can be reduced to zero also by doing modifications in the inefficient equipments. In that case both Replacement and Modification represents the equally large potential source of energy savings for the restaurant industry. Replacement will not be the largest source then.

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29 Aug 2012, 21:14
though i picked e

other options look like giving a good competition to the answer choice

can anyone explain individual answer choice with explanation
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30 Aug 2012, 05:20
A- The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent. We cannot conclude that we will save 30% it can be more than 30% also

B- No industry in the United States spends greater than \$10 billion each year on energy. --. the arguments talking abt restaurant industy and not abt all industry so this cannot be the conclusion.

C- By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant. --> the argument is discussing energy wastage and not abt expenses.. So incorrect...

D- Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered. --> the argument states 80% is wasted by use of inefficient equipment and 20% can we wasted in other ways... so we cannot conclude that \$2 billion is used efficiently...

E- The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry. --> from the argument we know 8 billion money spent is squandered by inefficient use of equipments. So by replcaing the equipments we can save enery.. therfore correct.

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25 Sep 2012, 09:18
I think the answer is C. The answer E uses extreme language. D is not mentioned in the question stem.

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29 Oct 2012, 03:11
its a good point raised by Jiten. But one should remember that he/she has to draw the most reliable conclusion of the above. All others apart from E are incorrect.
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17 Dec 2012, 16:59
I like E for the conclusion question. But, what would be the answer if it had been an inference question? I still don't get how inference is different from conclusion. My understanding is that a conclusion would summarize what is being said in the stimulus and E does the job for a conclusion question. But, regarding inference, does one need to analyse the arguement? Help will be appreciated.

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17 Dec 2012, 19:28
sharmila79 wrote:
I like E for the conclusion question. But, what would be the answer if it had been an inference question? I still don't get how inference is different from conclusion. My understanding is that a conclusion would summarize what is being said in the stimulus and E does the job for a conclusion question. But, regarding inference, does one need to analyse the arguement? Help will be appreciated.

Dear Sharmila79,

Inference is anything that would logically follow given the argument and it is something that is not explicitly stated in the argument. A conclusion, on the other hand is something that logically follows from the premises. A conclusion is the whole point which the author of the argument wants to make.
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17 Dec 2012, 20:11
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.

Premise of the argument: "Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment"

Conclusion of the argument is something which is drawn from the premises. Only Choice E can be concluded from the premise because any squandering of money that is more than 50% definitely represents the largest potential source of savings.

Choice D is wrong because , 80% of money that is squandered is based only on one factor i.e., use of inefficient equipment. There may be other factors which may also be squandering of money.
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17 Dec 2012, 20:57
For (E) I doubt the phrase "largest potential source" . To me , "largest" is extreme .We have no idea whether there can be some other potential source, say a new innovation , which can do a better energy savings .

The source of this question is doubtful .
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17 Dec 2012, 21:01
Practicegmat wrote:
For (E) I doubt the phrase "largest potential source" . To me , "largest" is extreme .We have no idea whether there can be some other potential source, say a new innovation , which can do a better energy savings .

The source of this question is doubtful .

The question is which one is the most reliable conclusion. So the answer should based on what is given. Other choices are definitely not reliable. Choice E only is reliable based on the facts stated.
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29 Apr 2013, 12:35
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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30 Apr 2013, 00:05
1
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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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Last edited by pqhai on 30 Apr 2013, 15:55, edited 2 times in total.

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30 Apr 2013, 07:07
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, 07:39
I think D because " replacement" is out of the context.

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30 Apr 2013, 08:01
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!
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30 Apr 2013, 12:09
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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Re: The restaurant business wastes more energy than any other   [#permalink] 30 Apr 2013, 12:09

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