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07 Oct 2021, 08:00
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The Vice President of a grocery chain released the following statement in 1990
In recent years, we've seen the prices from our wholesale suppliers increase sharply. The current wholesale prices we pay per ounce for vegetables, for instance, is double the price per ounce we paid five years ago. We are proud to announce that we have reached a new agreement with our suppliers to keep this price increase under control. Over the next ten years, our suppliers will only increase prices by 5% per year. Thus, this agreement will ensure that, in the long term, our wholesale costs will stay below market price.
In recent years, we've seen the prices from our wholesale suppliers increase sharply. The current wholesale prices we pay per ounce for vegetables, for instance, is double the price per ounce we paid five years ago. We are proud to announce that we have reached a new agreement with our suppliers to keep this price increase under control. Over the next ten years, our suppliers will only increase prices by 5% per year. Thus, this agreement will ensure that, in the long term, our wholesale costs will stay below market price.
The grocery chain's wholesale costs are currently well above market value.: Weaken
The market price of wholesale groceries will not decrease at some point during the next ten years.: Not Weaken
The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products.: Not Weaken
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
50% (02:47) correct
50%
(02:46)
wrong
based on 959
sessions
History
Date
Time
Result
Not Attempted Yet
1. For each of the following statements, select Weaken if the statement would weaken the claim in the Vice President's proposal. Otherwise, select Not Weaken.
| Weaken | Not Weaken | |
| The grocery chain's wholesale costs are currently well above market value. | ||
| The market price of wholesale groceries will not decrease at some point during the next ten years. | ||
| The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. |
ShowHide Answer
Official Answer
The grocery chain's wholesale costs are currently well above market value.: Weaken
The market price of wholesale groceries will not decrease at some point during the next ten years.: Not Weaken
The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products.: Not Weaken
In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990.: No
For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%.: No
From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%.: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
28% (01:35) correct
72%
(01:22)
wrong
based on 1079
sessions
History
Date
Time
Result
Not Attempted Yet
2. Consider each of the following statements. Does the information provided support the inference as stated?
| Yes | No | |
| In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. | ||
| For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%. | ||
| From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%. |
ShowHide Answer
Official Answer
In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990.: No
For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%.: No
From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%.: Yes
\(\frac{16}{25}\)
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
71% (01:22) correct
29%
(01:23)
wrong
based on 725
sessions
History
Date
Time
Result
Not Attempted Yet
3. The market price of groceries in 1990 was what fractional part of the market price of groceries in 2000?
| \(\frac{1}{2}\) | |
| \(\frac{16}{25}\) | |
| \(\frac{2}{3}\) | |
| \(\frac{3}{2}\) | |
| \(\frac{5}{4}\) |
ShowHide Answer
Official Answer
\(\frac{16}{25}\)
07 Oct 2021, 21:14
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Let vegetable wholesale prices in the year 1990 be 200, so vegetable price will follows as below
Price in 1985 100
Price in 1990 200
Price in 1995 255
Price in 2000 325
From 1990 to 2000 there is an increase of 5% every year.
q.1 The grocery chain's wholesale costs are currently well above market value.
As 325 (price wholesale in 2000) is greater than market price (300) for price in 2000. This will weaken the argument.
The market price of wholesale groceries will not decrease at some point during the next ten years. May or may not be true, but if it's true it will strengthen hence it will not weaken the claim.
The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. The consistency is not maintained as one is moving in simple interest one in compound interest, hence weaken the argument
Q.2
In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. True
For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%. False, as total increase for 5 year is 25% which is less than 5% increase in each year as compound interest is greater than simple interest.
From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%.This may or may not be true, hence false.
q.3 using the above data we get 200/300 so ratio will be 2/3.
Price in 1990 200
Price in 1992 250
Price in 2000 300
Price in 1985 100
Price in 1990 200
Price in 1995 255
Price in 2000 325
From 1990 to 2000 there is an increase of 5% every year.
q.1 The grocery chain's wholesale costs are currently well above market value.
As 325 (price wholesale in 2000) is greater than market price (300) for price in 2000. This will weaken the argument.
The market price of wholesale groceries will not decrease at some point during the next ten years. May or may not be true, but if it's true it will strengthen hence it will not weaken the claim.
The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. The consistency is not maintained as one is moving in simple interest one in compound interest, hence weaken the argument
Q.2
In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. True
For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%. False, as total increase for 5 year is 25% which is less than 5% increase in each year as compound interest is greater than simple interest.
From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%.This may or may not be true, hence false.
q.3 using the above data we get 200/300 so ratio will be 2/3.
Price in 1990 200
Price in 1992 250
Price in 2000 300
07 Oct 2021, 23:49
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Given,
TAB 1
prices from wholesale suppliers increase sharply. current wholesale prices = double the price of five years ago price. New agreement with suppliers. For 1990-2000, suppliers will only increase prices by 5% per year.
TAB 2
In 1995, wholesale price increased by 25% of what it had been in 1990.
In 2000, wholesale price increased by an additional 25% from what it had been in 1995.
From 1995 to 2000, the market wholesale price increased by the same percent each year.
Q Weaken / Not Weaken the Conclusion: "this agreement will ensure that, in the long term, our wholesale costs will stay below market price"
1a) The grocery chain's wholesale costs are currently well above market value. (even considering - In 1990, WP=100, MP=99- shows that WP(162 in 2000) will be > MP (154 in 2000)) Not Weaken
1b) The market price of wholesale groceries will not decrease at some point during the next ten years. (MP after continuous increase or stagnation for some years depends hugely on initial value of MP. But probably 'no decrease' will only weaken the director's claim. Weaken
1c) The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. (As per Tab 1, this already seems to be known to the director while he made the claim) Not Weaken
Q Does the information provided support the inference as stated?
2a) In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. They actually paid 27.6% more, Hence NO
2b) For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%.No info about increase. decrease of MP given, hence can't be inferred. NO
2c) From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%. The actual price change is 10.25%, Hence YES
Q3) The market price of groceries in 1990 was what fractional part of the market price of groceries in 2000?
A3) the market price of groceries in 1990 = 100 (assume)
Then, the market price of groceries in 2000 = 156.25 {(100*1.25)*1.25}
So ratio, 100/156.25 = 0.64 = 16/25
Option B
TAB 1
prices from wholesale suppliers increase sharply. current wholesale prices = double the price of five years ago price. New agreement with suppliers. For 1990-2000, suppliers will only increase prices by 5% per year.
TAB 2
In 1995, wholesale price increased by 25% of what it had been in 1990.
In 2000, wholesale price increased by an additional 25% from what it had been in 1995.
From 1995 to 2000, the market wholesale price increased by the same percent each year.
Q Weaken / Not Weaken the Conclusion: "this agreement will ensure that, in the long term, our wholesale costs will stay below market price"
1a) The grocery chain's wholesale costs are currently well above market value. (even considering - In 1990, WP=100, MP=99- shows that WP(162 in 2000) will be > MP (154 in 2000)) Not Weaken
1b) The market price of wholesale groceries will not decrease at some point during the next ten years. (MP after continuous increase or stagnation for some years depends hugely on initial value of MP. But probably 'no decrease' will only weaken the director's claim. Weaken
1c) The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. (As per Tab 1, this already seems to be known to the director while he made the claim) Not Weaken
Q Does the information provided support the inference as stated?
2a) In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. They actually paid 27.6% more, Hence NO
2b) For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%.No info about increase. decrease of MP given, hence can't be inferred. NO
2c) From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%. The actual price change is 10.25%, Hence YES
Q3) The market price of groceries in 1990 was what fractional part of the market price of groceries in 2000?
A3) the market price of groceries in 1990 = 100 (assume)
Then, the market price of groceries in 2000 = 156.25 {(100*1.25)*1.25}
So ratio, 100/156.25 = 0.64 = 16/25
Option B
