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12 Aug 2019, 11:08
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I chose D and not C and my reasoning was that the sample must be representative of the actual population.
D says that - In the sample, it might very well be the case that those 10% are responsible for 50% of the fraudulent cases (even monetarily) but if in the real world those 10% actually accounted for only 1%. Then, of course, they wouldn't be responsible for the "MAJORITY" of the cases.
Yes, it is important to know the average tax fraud they commit if even if you do know the average fraud they commit, it is impossible to say that they are responsible for the majority of the tax fraud without knowing their representation in the real world.
I don't know - I don't think the GMAT would draft such a question. At least I hope not. In any case, I would like to know where I am off with my thought process.
Thanks
Anudeep
D says that - In the sample, it might very well be the case that those 10% are responsible for 50% of the fraudulent cases (even monetarily) but if in the real world those 10% actually accounted for only 1%. Then, of course, they wouldn't be responsible for the "MAJORITY" of the cases.
Yes, it is important to know the average tax fraud they commit if even if you do know the average fraud they commit, it is impossible to say that they are responsible for the majority of the tax fraud without knowing their representation in the real world.
I don't know - I don't think the GMAT would draft such a question. At least I hope not. In any case, I would like to know where I am off with my thought process.
Thanks
Anudeep
12 Aug 2019, 11:09
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egmat
I chose D and not C and my reasoning was that the sample must be representative of the actual population.
In the sample, it might very well be the case that those 10% are responsible for 50% of the fraudulent cases (even monetarily) but if in the real world those 10% actually accounted for only 1%. Then, of course, they wouldn't be responsible for the "MAJORITY" of the cases.
Yes, it is important to know the average tax fraud they commit but then, even if you do know the average fraud they commit, it is impossible to say that they are responsible for the majority of the tax fraud without knowing their representation in the real world.
I don't know - I don't think the GMAT would draft such a question. At least I hope not. In any case, I would like to know where I am off with my thought process.
AjiteshArun, daagh, Magoosh, GMATNinja
Thanks
Anudeep
13 Aug 2019, 02:06
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Anud
Let's look at it this way. The 10% and 50% figures are just ratios and do not help us much. After all if 1000 SMEs dodge tax to the extent of , say, 2000 crores, this is just a fraction of two jewelers defrauding the county for more than 20,000 crores. Therefore, to know the extent of loss, we must be able to convert all the percentages to absolute money. For that sake, we need a bridge that gives the average fraud money by these swindlers and we can now multiply this average by the total number of people indulging in the scandal. Choice C gives this bridge.
All other things that do not focus on arriving at the quantum of absolute money are out of scope. Aren't they?
I think a reasonably sample is good enough to know the trend and extrapolate to a larger scale. A national sample may not be required. Now that we know who the culprits are, we can squeeze them to make them pay up the due tax together with penal fines. This is the rationale behind this question IMO.
Let's look at it this way. The 10% and 50% figures are just ratios and do not help us much. After all if 1000 SMEs dodge tax to the extent of , say, 2000 crores, this is just a fraction of two jewelers defrauding the county for more than 20,000 crores. Therefore, to know the extent of loss, we must be able to convert all the percentages to absolute money. For that sake, we need a bridge that gives the average fraud money by these swindlers and we can now multiply this average by the total number of people indulging in the scandal. Choice C gives this bridge.
All other things that do not focus on arriving at the quantum of absolute money are out of scope. Aren't they?
I think a reasonably sample is good enough to know the trend and extrapolate to a larger scale. A national sample may not be required. Now that we know who the culprits are, we can squeeze them to make them pay up the due tax together with penal fines. This is the rationale behind this question IMO.
