NEW HERE? LEARN MORE
closeclose
Last visit was: 27 Apr 2024, 11:31 It is currently 27 Apr 2024, 11:31
Decision Tracker
My Rewards
New posts
New comers' posts

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

When mobile phone companies, used to reporting several million new

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 92955
Own Kudos [?]: 619454 [6]
Given Kudos: 81611
Send PM
CAT Tests Forum Quiz Mode
When mobile phone companies, used to reporting several million new [#permalink] New post   27 Apr 2023, 01:30
6
Bookmarks
Expert Reply
00:00
A
B
C
D
E

Difficulty:

55% (hard)

Question Stats:

55% (01:40) correct 45% (01:53) wrong based on 157 sessions
Hide Show timer Statistics
Which of the following best completes the passage below?

When mobile phone companies, used to reporting several million new customers in a month, do the opposite and report a sharp fall in that number, you know that the country’s most dynamic industry has entered a new, more troubled phase. However, this statistic may not necessarily be as much of a cause for concern as it looks because ________________________.


(A) mobile phone companies have huge cash reserves so they will not face the problem of cash flow for a few months at least

(B) inflated claims about new customer acquisition have been very much a part of the industry story so far

(C) the sales of mobile phone handsets hasn’t fallen down appreciably

(D) other competitors have not entered the market in huge numbers

(E) mobile phone companies are making huge investments in widening their network coverage

ShowHide Answer
Official Answer
B
User avatar
B
SidhantGupta04
Intern
Intern
Joined: 06 Oct 2022
Posts: 15
Own Kudos [?]: 11 [0]
Given Kudos: 53
Send PM
Re: When mobile phone companies, used to reporting several million new [#permalink] New post   28 Apr 2023, 10:05
I chose B because it addressed the information about companies announcing millions of new customers every month.

Could you provide official explanation for this?
User avatar
S
hloonker
Manager
Manager
Joined: 12 Feb 2019
Posts: 91
Own Kudos [?]: 35 [0]
Given Kudos: 43
Send PM
Re: When mobile phone companies, used to reporting several million new [#permalink] New post   30 Apr 2023, 01:24
I chose B because it simply gives a story to the fact that the earlier increasing number was legit or not. And I did not chose C because of the extreme word being used' appreciably' and also because the number of cell phone acquisitions did not seem relevant as its a one time purchase.

Could you provide official explanation for this?
User avatar
L
pintukr
VP
VP
Joined: 03 Jul 2022
Posts: 1239
Own Kudos [?]: 799 [1]
Given Kudos: 21
GMAT 1: 680 Q49 V34
Send PM
Reviews Badge CAT Tests Forum Quiz Mode
When mobile phone companies, used to reporting several million new [#permalink] New post   30 Apr 2023, 09:01
1
Kudos
Which of the following best completes the passage below?

When mobile phone companies, used to reporting several million new customers in a month, do the opposite and report a sharp fall in that number, you know that the country’s most dynamic industry has entered a new, more troubled phase. However, this statistic may not necessarily be as much of a cause for concern as it looks because ________________________.


(A) mobile phone companies have huge cash reserves so they will not face the problem of cash flow for a few months at least
Cash reserves not deliberated for justifying the troubled phase or otherwise..the argument is related to fall in the number of new customers !!

(B) inflated claims about new customer acquisition have been very much a part of the industry story so far
If the earlier claims were inflated, it surely hints at the 'inflated' numbers getting moderated now (may be due to more checks, regulations etc) -- and so clearly not hinting at fall in the number of new customers --so, not a cause for concern..CORRECT answer

(C) the sales of mobile phone handsets hasn’t fallen down appreciably
additional handsets' purchase may or may not be correlated to new customers, since new customers may or may not purchase new handsets

(D) other competitors have not entered the market in huge numbers
relates to the argument in the desired manner towards justifying the conclusion, however not as strong as option (B)

(E) mobile phone companies are making huge investments in widening their network coverage
Increasing investments may or may not result in new customers; also not directly related to the statistic highlighted in the stimulus



(B) is the CORRECT answer
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 92955
Own Kudos [?]: 619454 [0]
Given Kudos: 81611
Send PM
CAT Tests Forum Quiz Mode
Re: When mobile phone companies, used to reporting several million new [#permalink] New post   06 May 2023, 13:30
Expert Reply
Bunuel wrote:
Which of the following best completes the passage below?

When mobile phone companies, used to reporting several million new customers in a month, do the opposite and report a sharp fall in that number, you know that the country’s most dynamic industry has entered a new, more troubled phase. However, this statistic may not necessarily be as much of a cause for concern as it looks because ________________________.


(A) mobile phone companies have huge cash reserves so they will not face the problem of cash flow for a few months at least

(B) inflated claims about new customer acquisition have been very much a part of the industry story so far

(C) the sales of mobile phone handsets hasn’t fallen down appreciably

(D) other competitors have not entered the market in huge numbers

(E) mobile phone companies are making huge investments in widening their network coverage

This is a CR Butler Question



Official Explanation:



Answer: B

We have to somehow show that the statistics are not a sign for worry. B does this best by stating that the original statistics were most likely inflated so the fall in numbers may not actually be as steep as it looks.

(A) But what about after a few months? This would still be a worrying sign for the companies.

(B) The correct answer.

(C) There is no real connection between the sale of mobile phone handsets and how many subscribers join mobile phone companies every month.

(D) If despite this fact the numbers are going down, then there must be some problem.

(E) Irrelevant to the argument.
User avatar
P
sanjayparihar16
Manager
Manager
Joined: 12 Apr 2018
Posts: 170
Own Kudos [?]: 137 [0]
Given Kudos: 426
Send PM
Re: When mobile phone companies, used to reporting several million new [#permalink] New post   06 May 2023, 13:58
Hi Bunuel,
I partially agree with the explanation for choice B.
The reason I am not fully satisfied with choice B is the fact that it is discarding the premise, and we know that we take premise as true. So, now if any answer choice would just discredit the premise then definitely that choice will be a clear weakener.

Can you please guide me more on this topic about what kind of premise can be denied/discredited and what should be the approach ?

Posted from my mobile device
GMAT Club Bot
gmatclubot
Re: When mobile phone companies, used to reporting several million new [#permalink]
06 May 2023, 13:58
Moderators:
GMATNinja
GMAT Club Verbal Expert
6923 posts
GMATNinjaTwo
GMAT Club Verbal Expert
238 posts
mysterymanrog
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions