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# The restaurant business wastes more energy than any other

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07 Aug 2008, 04:27
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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.
[Reveal] Spoiler: OA

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07 Aug 2008, 05:04
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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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20 Sep 2010, 07:46
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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.

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20 Sep 2010, 11:16
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E seems good:)
E it is then

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21 Sep 2010, 09:51
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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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11 May 2012, 23:16
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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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29 Apr 2013, 23:05
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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, 14:55, edited 2 times in total.

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30 Apr 2013, 11:44
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Expert's post
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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07 Aug 2008, 06:14
I also like E.

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07 Aug 2008, 08:27
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.

IMO E)

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08 Aug 2008, 19:46
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. -> 30% is not a correct figure and misleading not a conclution

B. No industry in the United States spends greater than \$10 billion each year on energy. -> not a conclution

C. By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant. -> OOS why are we comparing large industries here .again eve 30% of restraunts are large businesses which might conserve energy by using efficient tech.

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

E. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry. -> this is apt since 70% of restaraunts represent a majority where inefficient equip. exists and these equip lead to wastage of energy.replacing these equip can then improve energy savings

IMO E
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08 Aug 2008, 22:30
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.

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09 Aug 2008, 01:00
imo D since "replacement" in E is out of scope

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09 Aug 2008, 05:50
i had picked D as well, but apparently the OA is E

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09 Aug 2008, 17:37
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?

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10 Aug 2008, 07:57
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

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10 Aug 2008, 14:28
pmenon wrote:
i had picked D as well, but apparently the OA is E

What's the source of this question?

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10 Aug 2008, 16:27
i got the question off another forum; i dont recall them posting a source for it though

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20 Sep 2010, 04:25
IMO E
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20 Sep 2010, 04:30
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!).

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Re: The restaurant business wastes more energy than any other   [#permalink] 20 Sep 2010, 04:30

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