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# The restaurant business wastes more energy than any other

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VP
Joined: 28 Dec 2005
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07 Aug 2008, 05:27
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Difficulty:

75% (hard)

Question Stats:

57% (02:02) correct 43% (01:59) wrong based on 1443 sessions

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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.
Director
Joined: 10 Sep 2007
Posts: 892

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07 Aug 2008, 06:04
2
Premise 1: The restaurant business wastes more energy than any other industry in the United States.
Premise 2: Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment.
Premise 3: 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.

A. The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.
Passage does not support that energy will be reduced by 30% although squandering will be reduced by energy efficient equipments, by what percentage it is not clear.

B. No industry in the United States spends greater than \$10 billion each year on energy.
Premise 1 says this industry is largest squanderer not that it is the largest user.

C. By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.
Again no support in the passage.

D. Approximately \$2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
Premise 2 says 80% of energy is squandered because of inefficient equipments, however, it does not say that rest 20% is efficiently used. Maybe there are other factors also but they may be small as compared to the main factor sited in the passage.

E. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.
Seems Correct. Because 80% of energy wastage is attributed to inefficient equipments.
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Joined: 06 Jul 2007
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08 Aug 2008, 23:30
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.
Intern
Joined: 26 May 2008
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09 Aug 2008, 02:00
imo D since "replacement" in E is out of scope
VP
Joined: 28 Dec 2005
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09 Aug 2008, 06:50
i had picked D as well, but apparently the OA is E
Manager
Joined: 06 Jul 2007
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09 Aug 2008, 18:37
pmenon wrote:
i had picked D as well, but apparently the OA is E

what's the source?

The structure of Official CR is such that one must be able to negate four choices. I believe both D and E can be the answers, But, if i have to pick one, D should be it (since it's in numbers, so you can't negate that). those who think that E is better than D, could you please give us reasons for striking D out?
Manager
Joined: 23 Jul 2008
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10 Aug 2008, 08:57
1
Although I picked D but carefully examining the question stem I feel E is correct [b]Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment.[/b]
There is a possibility that some other source may have led to further squandering of energy resources hence E is the best answer choice
Manager
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10 Aug 2008, 15:28
pmenon wrote:
i had picked D as well, but apparently the OA is E

What's the source of this question?
VP
Joined: 28 Dec 2005
Posts: 1462

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10 Aug 2008, 17:27
i got the question off another forum; i dont recall them posting a source for it though
Manager
Joined: 18 Jun 2010
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20 Sep 2010, 05:30
How can we conclude on the basis of premise that the replacement represents the LARGEST potential source of energy saving? Premise doesn't say anything about this except for giving a percentage, 80%. If E is correct, then we are convieniently assuming that there's nothing which can affect energy saving MORE THAN inefficient equipments.

IMO, on this front, D atleast conforms with the premise (a 80-20 split holds true in this option!).
Intern
Joined: 14 Sep 2010
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Location: Budapest, Hungary
Schools: LBS, INSEAD, Harvard, Stanford, IE

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20 Sep 2010, 08:46
2
D can not be the answer since the original phrase does not say anything about the remaining 2 billion USD. It might happen that let's say 1 billion is squandered by the inappropriate use of energy efficient technology in the newly equipped restaurants by the restaurants' staff )

So I agree with E. This is the only right choice.
Intern
Joined: 16 Sep 2010
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20 Sep 2010, 12:16
1
E seems good:)
E it is then
Manager
Joined: 13 Apr 2010
Posts: 131
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20 Sep 2010, 17:13
+1 for E, Cause it represents the entire CR and

The restaurant business wastes more energy than any other industry in the United States.(restaurant business wastes energy)

Nearly 80 percent of the \$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment.(wastes energy due to 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.(wastes energy lack of energy-efficient technology)

Overall, energy can be saved by energy-efficient equipment
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Intern
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20 Sep 2010, 23:44
i have chose "D" at first, but after thinking again, i think it is wrong,

the paragraph mentioned that 80% of waste caused by inefficient equipments, but may be there are another sources of waste

so i move to the answer "E"
Senior Manager
Joined: 06 Jun 2009
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21 Sep 2010, 10:51
1
anunayg wrote:
imo D since "replacement" in E is out of scope

Actually, D is definitely wrong. Just because the remaining 20% is not squandered in efficient equipment, doesn't mean it is not squandered. Maybe part of the 20% is squandered in keeping food hot ............ or something like that. Concluding the that remaining 20% is not squandered is out of scope.

The replacement in E is not really out of scope because the question is asking for a CONCLUSION. However, what is out of scope in E is that fact the replacement is the LARGEST source of savings.

A little sub-standard question. Hopefully GMAT should not have anything like this. Still, if you come across something like this, use POE. Used POE and was left with E (not the best choice though).
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21 Sep 2010, 17:25
anunayg wrote:
imo D since "replacement" in E is out of scope

Actually, D is definitely wrong. Just because the remaining 20% is not squandered in efficient equipment, doesn't mean it is not squandered. Maybe part of the 20% is squandered in keeping food hot ............ or something like that. Concluding the that remaining 20% is not squandered is out of scope.

The replacement in E is not really out of scope because the question is asking for a CONCLUSION. However, what is out of scope in E is that fact the replacement is the LARGEST source of savings.

A little sub-standard question. Hopefully GMAT should not have anything like this. Still, if you come across something like this, use POE. Used POE and was left with E (not the best choice though).

How so? The premise states that 80% of \$10 billion is squandered by the use of inefficient equipment, then it goes on and reinforces that 70% of small restaurants are too cash strapped to invest in energy-efficient technology, so its clear that the replacement would be the largest energy savings for the restaurant industry? I seeing it from a #'s perspective...
Senior Manager
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22 Sep 2010, 08:04
My bad - I didn't realize it was LARGEST ENERGY SAVINGS. So that means E doesn't have any flaw after all.

All said and done only E makes any sense.
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Intern
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22 Sep 2010, 08:33
D is a stat but there is no reliable info that 2billion was efficiently used. However E is reasonable generic and acceptable reliable safe conclusion. All other answer choices are irrelevant
Intern
Joined: 02 Apr 2010
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25 Sep 2010, 05:27
I went with D, but apparently E is answer although 'replacement' in E seems out of scope.
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Manager
Joined: 20 Nov 2010
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22 Sep 2011, 09:27
Same mistake D was catchy due to 20% - 80% split and hence went for it.
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CR notes
http://gmatclub.com/forum/massive-collection-of-verbal-questions-sc-rc-and-cr-106195.html#p832142
http://gmatclub.com/forum/1001-ds-questions-file-106193.html#p832133
http://gmatclub.com/forum/gmat-prep-critical-reasoning-collection-106783.html
http://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html
http://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html?hilit=chineseburned

Re: The restaurant business wastes more energy than any other &nbs [#permalink] 22 Sep 2011, 09:27

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