GMATNinjaTwo wrote:
adkikani,
Quote:
I chose D with below reasoning:
Although IB and LED arrays costs almost same, since energy consumed by LED arrays is less, this would help in minimizing T's yearly costs. If while increasing no of lights (as suggested in D), they use more LED arrays then my maintenance costs will be lower. What is incorrect with my reasoning?
As stated by
ani007garg, we are asked, "Which of the following would it be most useful to know in determining whether switching to LED arrays would be likely to help
minimize Traverton’s yearly maintenance costs?" Imagine that Traverton currently has 100 traffic signal lights and each of those lights costs $50 per year (ie cost of electricity) using incandescent bulbs (so $5,000 total in energy costs). Switching to LEDs might reduce the annual energy cost per light bulb to $40, bringing the total annual energy costs down to $4,000.
Quote:
(D) Whether Traverton’s city council plans to increase the number of traffic signal lights in Traverton
Now, what if, as suggested in choice D, Traverton increases the number of traffic signal lights from, say, 100 to 200? If they stick with incandescent bulbs, the total annual energy cost will be $10,000, but if they change to LEDs, the total annual energy cost will be $8,000. Yes, it is true that $8,000 is more than the original annual cost using incandescent bulbs ($5,000), but $8,000 is cheaper than $10,000; therefore, based on annual energy costs, switching to LEDs would indeed help minimize Traverton's yearly maintenance costs, regardless of how many bulbs they have (or plan to have in the future). Now, if those LEDs only last half as long as the incandescent bulbs, that means Traverton will have to spend more money replacing bulbs if they convert to LEDs. This additional cost might offset the energy cost savings, in which case switching to LEDs might not help minimize Traverton's yearly maintenance costs.
Hi
GMATNinjaTwo, would you please confirm whether my reasoning is valid.
I thinks D is hard to assess, because D say increase the number of lights, but how many ? we don't know. the prompt does not tell us.
suppose, increase 100 lights, the yearly maintain cost almost same, while increase 101 , the yearly maintain cost increase significant.
then as long as the increases are fewer than 100, then two paths( increase 1 light and increase 100 lights), then both results are almost same, (no matter increase 1or 100, the yearly costs are almost same)
once the increases are more than 100, then the yearly costs are almost same.
Please confirm
Thanks in advance.
>_~