GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

It is currently 11 Jul 2020, 07:28

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.

Close

Request Expert Reply

Confirm Cancel

When new laws imposing strict penalties for misleading corporate discl

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Senior SC Moderator
avatar
V
Joined: 22 May 2016
Posts: 3951
When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 22 Apr 2020, 00:22
21
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

28% (02:00) correct 72% (02:13) wrong based on 485 sessions

HideShow timer Statistics

When new laws imposing strict penalties for misleading corporate disclosures were passed, they were hailed as initiating an era of corporate openness. As an additional benefit, given the increased amount and accuracy of information disclosed under the new laws, it was assumed that analysts' predictions of corporate performance would become more accurate. Since the passage of the laws, however, the number of inaccurate analysts' predictions has not in fact decreased.

Which of the following would, if true, best explain the discrepancy outlined above?


A) The new laws' definition of “misleading information” can be interpreted in more than one way.

B) The new laws require corporations in all industries to release information at specific times of the year.

C) Even before the new laws were passed, the information most corporations released was true.

D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.

E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.

CR56601.02

_________________
Visit SC Butler, here! Get two SC questions to practice, whose links you can find by date.

Our lives begin to end the day we become silent about things that matter. -- Dr. Martin Luther King, Jr.

BLACK LIVES MATTER.
Most Helpful Community Reply
Intern
Intern
User avatar
B
Joined: 08 May 2015
Posts: 42
GMAT 1: 780 Q50 V51
Re: When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 22 Apr 2020, 09:00
4
2
A) is irrelevant because the passage states as a given "the increased amount and accuracy of information disclosed under the new laws". Whether or not they were misinterpreted the argument states very clearly that it increased the amount and accuracy of the info.

B) There is not logical connection from this to the discrepancy between the accuracy of analysts' predictions

C) Whether or not the information most corporations released was true, as in (a), the passage clearly states that the accuracy has increased (at least a little bit)

D) Even still, if just one of their sources (corporate disclosures) increased in accuracy, you would expect this to improve their performance in some way. This doesn't resolve the discrepancy.

E) This directly shows that since the amount of information released increased, the analysts may have had a hard time organizing it in order to make good predictions, even if the information is more accurate.

(e) is the right answer.
_________________
General Discussion
Manager
Manager
User avatar
S
Joined: 05 Jul 2017
Posts: 84
Location: India
Schools: IMD '21
Re: When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 02 May 2020, 22:22
1
fiftyoneverbal wrote:
A) is irrelevant because the passage states as a given "the increased amount and accuracy of information disclosed under the new laws". Whether or not they were misinterpreted the argument states very clearly that it increased the amount and accuracy of the info.

B) There is not logical connection from this to the discrepancy between the accuracy of analysts' predictions

C) Whether or not the information most corporations released was true, as in (a), the passage clearly states that the accuracy has increased (at least a little bit)

D) Even still, if just one of their sources (corporate disclosures) increased in accuracy, you would expect this to improve their performance in some way. This doesn't resolve the discrepancy.

E) This directly shows that since the amount of information released increased, the analysts may have had a hard time organizing it in order to make good predictions, even if the information is more accurate.

(e) is the right answer.


Hi, since you got a V50 . A question for you : How would you rate the difficulty of this question ? 600- or 600+ or 700+ ?

Though this is direct from the info given.
_________________
When nothing seem to help, I would go and look at a Stonecutter hammering away at his rock perhaps a hundred time without as much as a crack showing in it.
Yet at the hundred and first blow it would split in two.
And I knew it was not that blow that did it, But all that had gone Before.
Manager
Manager
avatar
P
Joined: 28 Jan 2017
Posts: 186
WE: Consulting (Computer Software)
Reviews Badge
When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 03 May 2020, 18:11
fiftyoneverbal wrote:
A) is irrelevant because the passage states as a given "the increased amount and accuracy of information disclosed under the new laws". Whether or not they were misinterpreted the argument states very clearly that it increased the amount and accuracy of the info.

B) There is not logical connection from this to the discrepancy between the accuracy of analysts' predictions

C) Whether or not the information most corporations released was true, as in (a), the passage clearly states that the accuracy has increased (at least a little bit)

D) Even still, if just one of their sources (corporate disclosures) increased in accuracy, you would expect this to improve their performance in some way. This doesn't resolve the discrepancy.

E) This directly shows that since the amount of information released increased, the analysts may have had a hard time organizing it in order to make good predictions, even if the information is more accurate.

(e) is the right answer.



Hey, I still dont get why D is bad. Here in D, it is said that "Analysts base their predictions on information they gather from many sources", so why cant any one of those resources be a bad one and can hamper their prediction which can cause this discrepancy.
As in E also, we have to assume that task being a difficult one analysts show this discrepancy.
What is the hard line which is separating D and E.
Intern
Intern
User avatar
B
Joined: 08 May 2015
Posts: 42
GMAT 1: 780 Q50 V51
When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 04 May 2020, 06:58
1
2
800Dreamer wrote:
Hey, I still dont get why D is bad. Here in D, it is said that "Analysts base their predictions on information they gather from many sources", so why cant any one of those resources be a bad one and can hamper their prediction which can cause this discrepancy.
As in E also, we have to assume that task being a difficult one analysts show this discrepancy.
What is the hard line which is separating D and E.


The key is that, even if option D was true, it would have been true even under the old laws. The analysts would have based their predictions on many sources under the old laws, and will continue to base their predictions on many sources under the new laws. The only difference is that under the new laws, corporate disclosures are more accurate. Therefore, when the new laws came into place, you would expect the accuracy to increase (because the only thing that's changed is that the corporate disclosures are more accurate).
_________________
Intern
Intern
User avatar
B
Joined: 08 May 2015
Posts: 42
GMAT 1: 780 Q50 V51
Re: When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 04 May 2020, 06:59
itspC wrote:

Hi, since you got a V50 . A question for you : How would you rate the difficulty of this question ? 600- or 600+ or 700+ ?

Though this is direct from the info given.


I would say this is quite a difficult question (probably 700-level)
_________________
Intern
Intern
avatar
B
Joined: 09 Apr 2020
Posts: 24
Re: When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 03 Jun 2020, 03:04
In correct answer E How can we say that more pieces of information have been released after new law passed?
BSchool Moderator
User avatar
P
Joined: 11 Feb 2018
Posts: 351
Location: India
Concentration: General Management, Finance
GMAT 1: 690 Q47 V37
GMAT 2: 710 Q50 V36
GMAT 3: 750 Q50 V42
Reviews Badge CAT Tests
Re: When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 04 Jun 2020, 16:10
2
Thelionking1234 wrote:
In correct answer E How can we say that more pieces of information have been released after new law passed?


When new laws imposing strict penalties for misleading corporate disclosures were passed, they were hailed as initiating an era of corporate openness. As an additional benefit, given the increased amount and accuracy of information disclosed under the new laws, it was assumed that analysts' predictions of corporate performance would become more accurate. Since the passage of the laws, however, the number of inaccurate analysts' predictions has not in fact decreased.

See the bolded portion
Intern
Intern
avatar
B
Joined: 06 May 2019
Posts: 17
Re: When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 07 Jun 2020, 02:12
fiftyoneverbal wrote:
A) is irrelevant because the passage states as a given "the increased amount and accuracy of information disclosed under the new laws". Whether or not they were misinterpreted the argument states very clearly that it increased the amount and accuracy of the info.

B) There is not logical connection from this to the discrepancy between the accuracy of analysts' predictions

C) Whether or not the information most corporations released was true, as in (a), the passage clearly states that the accuracy has increased (at least a little bit)

D) Even still, if just one of their sources (corporate disclosures) increased in accuracy, you would expect this to improve their performance in some way. This doesn't resolve the discrepancy.

E) This directly shows that since the amount of information released increased, the analysts may have had a hard time organizing it in order to make good predictions, even if the information is more accurate.

(e) is the right answer.


How can we say that bad organisation of Data will lead to Inaccurate prediction ???
Stern School Moderator
User avatar
S
Joined: 26 May 2020
Posts: 271
Concentration: General Management, Technology
WE: Analyst (Computer Software)
CAT Tests
When new laws imposing strict penalties for misleading corporate discl  [#permalink]

Show Tags

New post 07 Jun 2020, 14:25
1
Quote:
When new laws imposing strict penalties for misleading corporate disclosures were passed, they were hailed as initiating an era of corporate openness. As an additional benefit, given the increased amount and accuracy of information disclosed under the new laws, it was assumed that analysts' predictions of corporate performance would become more accurate. Since the passage of the laws, however, the number of inaccurate analysts' predictions has not in fact decreased.

Which of the following would, if true, best explain the discrepancy outlined above?


A) The new laws' definition of “misleading information” can be interpreted in more than one way.

B) The new laws require corporations in all industries to release information at specific times of the year.

C) Even before the new laws were passed, the information most corporations released was true.

D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.

E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.

E , IMO .
Below is my reasoning .

Conclusion :
1. It was assumed that analysts' predictions of corporate performance would become more accurate.

Premise :
1. After new laws imposing strict penalties for misleading corporate disclosures were passed , the amount and accuracy of information disclosed under the new laws were increased .
Actual result :
1. Since the passage of the laws, however, the number of inaccurate analysts' predictions has not in fact decreased.

Question :
Which of the following would, if true, best explain the discrepancy outlined above?

So the paradox here is
It was assumed that analysts' predictions of corporate performance would become more accurate.
but in reality
the number of inaccurate analysts' predictions has not in fact decreased.
We need to resolve this paradox .
Lets' analyse , what if the
the increased amount and accuracy of information disclosed under the new laws were not befitting the analyst in their evaluation . In that case even if they are getting more quality information , it may not help them in overall result .

With this understanding , lets go for POE .

A) The new laws' definition of “misleading information” can be interpreted in more than one way.
--Not impacting the paradox , Irrelevant .


B) The new laws require corporations in all industries to release information at specific times of the year.
-- Even if info is available at specific time of the year , with increased accuracy it is expected to increase the overall accuracy . So not resolving the paradox -so Out

C) Even before the new laws were passed, the information most corporations released was true.
-- Its a tempting choice , however , in premise it clearly says that as a part of the law the amount and accuracy of the info increased . So if earlier analysts were getting X info . Now they are getting x + 10 info . So with increased accuracy and info , theirs overall accuracy should have increased . So not resolving the paradox -so Out


D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.
-- Lets think analysts were getting info from 5 sources total . Now after this law the info from one sources is increased and more accurate . So the overall accuracy should have increased . . So not resolving the paradox -so Out

E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.

-- Yes this choice is saying that with more information , it is more difficult to manage and organize . Hence without manage and organizing data, it is unlikely to add value to the overall accuracy of the analyst. So this choice is actually trying to provide a possible reason to resolve the paradox as we thought during our analysis phase .

Hence E is my ans .

_________________
Thank you.
Regards,
Ashish A Das.

The more realistic you are during your practice, the more confident you will be during the CAT.
GMAT Club Bot
When new laws imposing strict penalties for misleading corporate discl   [#permalink] 07 Jun 2020, 14:25

When new laws imposing strict penalties for misleading corporate discl

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





cron

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne