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Re: GMAT Club Around The World!!! Charities will soon start scrutinizing [#permalink]
Charities will soon start scrutinizing major donors for any signs of financial wrongdoing. Even though the screening processes are estimated to disqualify up to ten percent of all prospective donors, they will still fail to identify one-third of all donors who have committed financial maleficence. Therefore, about five percent of actual donors will still provide unethically sourced money.

Which of the following inferences about the consequences of instituting the new screening processes is best supported by the passage above?

Solution: We can take some numbers and verify the percentages but it's not required as we will soon find out from the answer options. Just keep in mind that 10% of prospective donors will be excluded.

A. Incidences of financial wrongdoing are likely to rise by five percent.: We cannot say that. We don't know about the rate or number of incidences of financial wrongdoing. We only know of all donors 10% who commit financial wrongdoing will be excluded but how many wrongdoers are there or what number is not of our concern.

B. The amount of money available to charities is likely to decrease.: If the % or the number of prospective donors decreases, so will the total donation. Correct

C. The funding for social initiatives by charities is likely to fluctuate across a wider range.: We cannot say for sure. Even if the total donation is reduced, the funding for social initiatives by charities can be kept the same while reducing some other expense.

D. Donations made solely for the benefit of the donor are likely to become rarer.: What does benefit to donor mean, like tax benefit? We don't know. Nothing is mentioned in the passage regarding that.

E. Potential first-time donors are likely to increase in number by ten percent.: Nothing of the sort is mentioned nor can we infer it.
GMAT Club Bot
Re: GMAT Club Around The World!!! Charities will soon start scrutinizing [#permalink]
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