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08 Nov 2021, 06:30
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
58% (02:29) correct
42%
(02:17)
wrong
based on 290
sessions
History
Date
Time
Result
Not Attempted Yet
Plan: Concerned about falling sales, the wallet company decided two years ago to increase by 50 percent the expenditures it allocated to advertising on an online search engine.
Result: The wallet company is no better off financially now than it was before the increase.
Further information: The company has not spent any money developing other accessory products and all of the company funded online campaigns have been successfully executed by the online search company.
In light of the further information, which of the following, if true, does most to explain the result that followed implementation of the plan?
(A) The wallet company whose financial position has not improved relies entirely on the online search engine for its advertising.
(B) The online search engine is so inefficient that advertising placement does not occur until as much as four weeks later.
(C) The cost per click on the search engine for the niche keywords relevant to the wallet company has more than doubled in the first year.
(D) The advertising budget increase occurred at a time when the company's cash balance was at an all-time high.
(E) The most recent advertising budget increase was only the second such increase in the last ten years.
Result: The wallet company is no better off financially now than it was before the increase.
Further information: The company has not spent any money developing other accessory products and all of the company funded online campaigns have been successfully executed by the online search company.
In light of the further information, which of the following, if true, does most to explain the result that followed implementation of the plan?
(A) The wallet company whose financial position has not improved relies entirely on the online search engine for its advertising.
(B) The online search engine is so inefficient that advertising placement does not occur until as much as four weeks later.
(C) The cost per click on the search engine for the niche keywords relevant to the wallet company has more than doubled in the first year.
(D) The advertising budget increase occurred at a time when the company's cash balance was at an all-time high.
(E) The most recent advertising budget increase was only the second such increase in the last ten years.
03 Jan 2022, 12:27
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From the passage we know that despite successfully executing the online campaigns the company is not financially better now than it was before.
Pre-thinking -
We have to find a reason that resolves the paradox that despite successful campaign, the company did not improve financially.
We are not told about any of the cost that was associated with the online campaigns. What if the cost increased, then the profits would not have increased as much as expected.
(A) The wallet company whose financial position has not improved relies entirely on the online search engine for its advertising.
Had the company solely rely online search engine for its advertising, then sales should have increased thereby making the company financially better. However, the company was no better off financially now than it was before the increase.
(B) The online search engine is so inefficient that advertising placement does not occur until as much as four weeks later.
We are told that the all of the company funded online campaigns have been successfully executed by the online search company. Also delay of four weeks while may have an impact does not throw much light why the company was not better financially two years since the implementation of the plan.
(C) The cost per click on the search engine for the niche keywords relevant to the wallet company has more than doubled in the first year.
This provides an explanation inline with what we had assumed.
The options resolves the paradox by giving us that extra information regarding the increase in cost occurred since the implementation of the plan. Therefore though the plan had executed as expected, the increased in cost per click on the search engine resulted in additional expenses.
(D) The advertising budget increase occurred at a time when the company's cash balance was at an all-time high.
Out of scope as it does not provide any relevant information to resolved the paradox.
(E) The most recent advertising budget increase was only the second such increase in the last ten years.
Out of scope as it does not provide any relevant information to resolved the paradox.
Pre-thinking -
We have to find a reason that resolves the paradox that despite successful campaign, the company did not improve financially.
We are not told about any of the cost that was associated with the online campaigns. What if the cost increased, then the profits would not have increased as much as expected.
(A) The wallet company whose financial position has not improved relies entirely on the online search engine for its advertising.
Had the company solely rely online search engine for its advertising, then sales should have increased thereby making the company financially better. However, the company was no better off financially now than it was before the increase.
(B) The online search engine is so inefficient that advertising placement does not occur until as much as four weeks later.
We are told that the all of the company funded online campaigns have been successfully executed by the online search company. Also delay of four weeks while may have an impact does not throw much light why the company was not better financially two years since the implementation of the plan.
(C) The cost per click on the search engine for the niche keywords relevant to the wallet company has more than doubled in the first year.
This provides an explanation inline with what we had assumed.
The options resolves the paradox by giving us that extra information regarding the increase in cost occurred since the implementation of the plan. Therefore though the plan had executed as expected, the increased in cost per click on the search engine resulted in additional expenses.
(D) The advertising budget increase occurred at a time when the company's cash balance was at an all-time high.
Out of scope as it does not provide any relevant information to resolved the paradox.
(E) The most recent advertising budget increase was only the second such increase in the last ten years.
Out of scope as it does not provide any relevant information to resolved the paradox.
02 Apr 2026, 12:31
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