gmat1393
Penta Airlines and Hexa Airlines are the two largest airlines in Miambi and are also very close competitors. Lately, Penta has been gaining market share because of the increasing customer focus on on-time performance, in which Penta is much better than Hexa. Taking a serious view of the decline in market share, Hexa recently implemented a slew of measures to improve its on-time performance. The last month statistics for on-time performance show that the difference between Hexa and Penta has narrowed down, indicating that recently implemented measures have been successful.
Which of the following is an assumption made by the author of the above argument?
A. The difference between the number of flights of Hexa and the number of flights of Penta did not reduce in the last month.
B. The market share of Hexa increased in the last month
C. Penta’s on-time performance did not decline in the last month.
D. The recently implemented measures by Hexa in order to increase the on-time performance were praised by the analysts, leading to a jump in the stock price.
E. The rewards of the top management at Hexa are linked to the on-time performance of the airline.
Penta has better on time performance than Hexa. (So say 90% of Penta's flights are on time while only 82% of Hexa's flights are on time)
Hexa's market share was hit because of this so it brought in improvements.
Last month, diff between on time performance (the 8% difference) has narrowed (and become, say 5%)
Conclusion: Hexa's measure worked.
(Implying that Hexa's on time performance improved so perhaps it went up to 85%)
But what if the reduction in difference was because of reduction in Penta's performance? What if actually Penta's performance had gone down to 87%? Then Hexa's measures may not have worked.
This is what (C) says
C. Penta’s on-time performance did not decline in the last month.
To say that Hexa's measures worked, we are assuming that Penta's performance did not decline.
Answer (C)
A. The difference between the number of flights of Hexa and the number of flights of Penta did not reduce in the last month.
The actual number of flights they have is irrelevant. On time performance cannot depend on how many flights there are. It gives us some measure of punctuality of the airline such that you can compare it with the same metric of other airlines. Hence, it cannot depend on the number of flights each airline works. The point is - of the flights they have, what fraction reaches on time.
B. The market share of Hexa increased in the last month
We need to assume that. All we know is that the diff between the stats of the two airlines decreased. What happened to market share is irrelevant.
D. The recently implemented measures by Hexa in order to increase the on-time performance were praised by the analysts, leading to a jump in the stock price.
Irrelevant
E. The rewards of the top management at Hexa are linked to the on-time performance of the airline.
Irrelevant
Answer (C)