The restaurant business wastes more energy than any other industry in

Question

The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the
$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment
...
D. Approximately $2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
E. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.

Which of the following statements draws the most reliable conclusion from the information above

(A) The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.

(B) No industry in the United States spends greater than $10 billion each year on energy.

(C) By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.

(D) Approximately $2 billion of the amount spent on energy each year by the restaurant industry is not squandered.

(E) The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.

abhijit_sen · Accepted Answer

Premise 1: The restaurant business wastes more energy than any other industry in the United States. 
Premise 2: Nearly 80 percent of the $10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. 
Premise 3: At the same time, approximately 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology.

A. The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.
Passage does not support that energy will be reduced by 30% although squandering will be reduced by energy efficient equipments, by what percentage it is not clear.

B. No industry in the United States spends greater than $10 billion each year on energy.
Premise 1 says this industry is largest squanderer not that it is the largest user.

C. By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.
Again no support in the passage.

D. Approximately $2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
Premise 2 says 80% of energy is squandered because of inefficient equipments, however, it does not say that rest 20% is efficiently used. Maybe there are other factors also but they may be small as compared to the main factor sited in the passage.

E. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.
Seems Correct. Because 80% of energy wastage is attributed to inefficient equipments.

Bunuel · Answer

OFFICIAL EXPLANATION

The passage provides two pieces of statistical information about the restaurant business in the United States. Both pieces of information are framed in terms of percentages. To draw a proper GMAT conclusion, we will need to find an answer choice that is directly in line with the statistical data cited in the passage.

(A) The passage makes no connection between the availability of energy-efficient equipment and a 30 percent reduction in energy costs.

(B) The passage provides no information about the annual energy costs of any industry except the restaurant business. While the passage states that the restaurant business wastes more energy than any other industry in the United States, it makes no claim about the amount spent on energy by the restaurant industry relative to other industries.

(C) The difference in relative energy savings accrued by a small restaurant as compared to that of a large restaurant is not addressed in the passage.

(D) According to the passage, $8 billion (80% of the $10 billion spent on energy each year) is squandered on inefficient equipment. This leaves $2 billion unaccounted for in the passage. This does not necessarily mean that some of this $2 billion is not squandered; it simply means that it is not squandered on inefficient equipment. It might, for example, be squandered on employees who forget to turn off the lights after closing.

(E) CORRECT.  Since the waste attributed to the use of inefficient equipment accounts for 80% of the $10 billion spent on energy each year, savings from other sources could account for, at most, 20% of the $10 billion spent. Thus, the replacement of inefficient equipment represents – by far – the largest potential source of energy savings.

szaszka · Answer

D can not be the answer since the original phrase does not say anything about the remaining 2 billion USD. It might happen that let's say 1 billion is squandered by the inappropriate use of energy efficient technology in the newly equipped restaurants by the restaurants' staff

)

So I agree with E. This is the only right choice.

) So I agree with E. This is the only right choice.

nrgmat · Answer

Ans:E
The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the $10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment. At the same time, approximately 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology.

Which of the following statements draws the most reliable conclusion from the information above

(A) The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.
 The question doesnt give any information on how much energy efficient equipment will reduce the energy costs by.

(B) No industry in the United States spends greater than $10 billion each year on energy.
 Extreme answer/Out of scope

(C) By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant. 
The question does not compare expenses of a small and large restaurants.

(D) Approximately $2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
 Question says $8billion is squandered on energy costs. It does not specify if the remaining $2billion is a justified expense or is squandered on something else.

(E) The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry. 
 Correct answer.

GyanOne · Answer

E it is - if 80% of the energy spend of the restaurant industry is being squandered by inefficient equipment, it is clear that the replacement of inefficient equipment represents the largest potential resource of energy savings for the restaurant industry

SVaidyaraman · Answer

Premise of the argument: "Nearly 80 percent of the $10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment"

Conclusion of the argument is something which is drawn from the premises. Only Choice E can be concluded from the premise because any squandering of money that is more than 50% definitely represents the largest potential source of savings.

Choice D is wrong because , 80% of money that is squandered is based only on one factor i.e., use of inefficient equipment. There may be other factors which may also be squandering of money.

Practicegmat · Answer

For (E) I doubt the phrase "largest potential source" . To me , "largest" is extreme .We have no idea whether there can be some other potential source, say a new innovation , which can do a better energy savings .

The source of this question is doubtful .

The source of this question is doubtful .

SVaidyaraman · Answer

The question is which one is the most reliable conclusion. So the answer should based on what is given. Other choices are definitely not reliable. Choice E only is reliable based on the facts stated.

pqhai · Answer

Fact: The restaurant business  wastes more energy  than any other industry 
Fact: 80 percent of the $10 billion spent on energy by the restaurant industry each year is squandered  by the use of inefficient equipment 
Fact: 70 percent of restaurants in the United States are small businesses that are usually too cash poor to invest in energy-efficient technology

1. The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent.
 Wrong.  No information to conclude that restaurant industry can save 30% energy cost.

2. No industry in the United States spends greater than $10 billion each year on energy.
 Wrong.  The stimulus only says: The restaurant business   wastes   more energy than any other industry in the United States ==> wastes # spend

3. By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant.
 Wrong.  small restaurants account for 70% of total restaurant. It doesn't mean they account for larger percentage of energy costs.

4. Approximately $2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
 Wrong.    Shell game.   80 percent of the $10 billion spent on energy by the restaurant industry each year is squandered   by the use of inefficient equipment  . KEY WORDS.
It means energy by the restaurant industry each year  is also squandered by other reasons . ==> the amount of energy that is not squandered should be  less than $2 billion .

Be very careful with this kind of trap .
Example:
  80% of income is spent  for food  --> 20% of income is not spent ==> Totally wrong.

5. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.
  Correct.

Hope it helps.

VeritasPrepRon · Answer

Remember in these situations you have to be able to infer something that "must be true". This one is tricky as E is correct but D is very tempting as well, but let's look for scenarios that could still be true given the (relevant) information:

The restaurant business wastes more energy than any other industry in the United States. Nearly 80 percent of the
$10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment
...
D. Approximately $2 billion of the amount spent on energy each year by the restaurant industry is not squandered.
E. The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry.

For D, could you imagine a scenario in which 80% of the $10B is squandered by the use of inefficient equipment and say 5% is squandered on something else, say paying environmental fees or licensing for your equipment? Sure, why not? This money could still be squandered even if it wasn't spent on inefficient equipment. Tempting, but this answer choice doesn't HAVE to be true.

For E, since we know the restaurant industry spends $10B on energy every year, if we could save 5,000,000,001$ we know this would be the greatest amount it could possibly save, i.e. 50%+1. If a sector is over 50%, it must necessarily represent the largest possible savings. Thus E must be true.

On questions like this you will often be torn between two choices. Carefully considering all options will usually lead you to discovering the difference between the two choices and at least one case in which the incorrect answer could be falst.

Hope this helps!
-Ron

HumptyDumpty · Answer

I don't go with E:
We have no idea about other potential sources of energy savings. None of them are mentioned, and what if the industry squanders more on petrol or inefficient advertising?

As for D (which I've chosen):
The argument states that 8 out of 10 million spent on energy is squandered. The D says that 2 out of 10 million spent on energy is not squandered. If there was no restriction to the area of squander, D would be false. But IMO D is restricted more than E, thus my choice.

HumptyDumpty · Answer

What if the industry spends $100B on lawn mowers each year? Of which 90% is squandered due to lack of lawns?

What is the difference between the logic in above contest and in this reasoning:

I could manipulate:

What am I missing?

VeritasPrepRon · Answer

Hi HumptyDumpty, the entire sentence is important, and answer choice E says "The replacement of inefficient equipment represents the   largest potential source of energy savings  for the restaurant industry."

They could save $100B on lawns, but that doesn't have anything to do with a source of energy savings. Since the question has given us 80% of the amount of energy spent on the budget, this must necessarily be where the majority of the savings can come from.

Beware logic like "D is more restrictive than E", inference questions must be true, 100% of the time. If you find one scenario that doesn't work for D and 2 that don't work for E, that doesn't mean D is better. If you can find faults in two different choices, you may need to try looking at them the right way because there's a missing piece of information or an extra assumption that is erroneous.

Hope this helps!
-Ron

Skywalker18 · Answer

Type - Inference 
Boil it down - restaurant business wastes most energy 
-80 % of the $10 billion spent on energy by the restaurant industry each year is squandered by the use of inefficient equipment
-70% of the restaurants are small businesses that are too poor to invest in energy efficient tech

(A) The availability of energy-efficient equipment will reduce the energy costs of the restaurant industry by approximately 30 percent. - Incorrect - no such information is provided 
(B) No industry in the United States spends greater than $10 billion each year on energy. - Out of scope - we are only told that restaurant business wastes most energy . There might be other industries that spend more than 10$ billion per year and are energy efficient.
(C) By using energy-efficient technology, a small restaurant will reduce its expenses by a greater percentage than will a large restaurant. - Out of scope 
(D) Approximately $2 billion of the amount spent on energy each year by the restaurant industry is not squandered. Incorrect - the remaining 2 billion $ might be squandered by other means
(E) The replacement of inefficient equipment represents the largest potential source of energy savings for the restaurant industry. Correct

Answer E

adarsh1993 · Answer

a) wrong since we don't know how much the new equipment will be able to save - we just know how much is being squandered now
b) wrong - no idea abt other industries
c) wrong - again cant assume this 
d) wrong - we know that approx 80 percent that is 8 billion is squandered due to inefficient equipment but we dont know whether the rest 20 percent is being squandered or how much of that 20 percent is not squandered due to other reasons
e) correct

TheGraceful · Answer

Good explanation.
Although, most explanations, counter explanations, all were good, Liked the clear and crisp explanation though this thought process.
Learnt to save time through such process.

VerbalBot · Answer

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The restaurant business wastes more energy than any other industry in

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The restaurant business wastes more energy than any other industry in

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