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With a record number of new companies starting up in Derderia and with

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With a record number of new companies starting up in Derderia and with [#permalink]

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With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.

Which of the following is an assumption on which the argument relies?

(A) Each year, new companies starting up create more new jobs overall than do previously established companies.

(B) Companies established last year will not add a greater number of jobs overall this year than they did last year.

(C) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.

(D) This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies.

(E) The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year.
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With a record number of new companies starting up in Derderia and with [#permalink]

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With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.


a) Each year, new companies starting up create more new jobs overall than do previously established companies.

If they do so, it is possible that D will have more jobs created this year but our conclusion says otherwise.

b) Companies established last year will not add a greater number of jobs overall this year than they did last year.


Isn't this already stated in the stimulus?

c) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.

IMO, Correct. Negate this. New Companies will provide substantially more jobs per company than did new companies last year. So There is a chance that the new jobs this year will break the last year's record. If we look at the stimulus it reaches the conclusion that total number of jobs created will be less than last year based on the lesser number of jobs created by established companies. So the missing piece is the new start ups will not hire massively to set a new record.


d) This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies.

Unrelated. we are not talking about the net jobs and whether the net jobs (created-lost) is positive or negative

e) The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year.

Unrelated.


I say C
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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The correct answer is C.

This one tastes like a GMAT question, although the waiter came along and sprinkled plenty of freshly ground LSAT on top. If we put the conclusion into a more normal grammatical order (which does NOT change its logical meaning!!), it becomes "Derderia will not break its record for new jobs created unless a record number of companies start up this year." Logically, the structure "not A unless B" means exactly the same thing as "If A, then B" (one of the useful points we teach in the Kaplan LSAT course).

So the conclusion actually means "If Derderia breaks its record for new jobs created, a record number of companies must have started up", or, contrapositively, "If a record number of companies do not start up, Derderia will not break its record."

What's the evidence? Only two facts: New jobs are created by previously established companies adding jobs and by new companies starting up; and this year's previously established companies are not going to add as many jobs as last year's established companies did.

What is missing? In order to prove the conclusion, we need to prove that if the evidence is true and IF a record number of companies do not start up, then the TOTAL number of new jobs created this year will be fewer than last year. The evidence tells us that the established companies will create fewer jobs. In order to show that the total number of new jobs will be smaller, we also need to know that the startups will create fewer jobs.

The "if" part of the conclusion tells us that there will be fewer startup COMPANIES -- but that is not what we need. We need fewer JOBS. Therefore, the missing assumption is that fewer startup COMPANIES necessarily means fewer JOBS. Answer choice C guarantees that this will be true, and so it is correct.
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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tarek99 wrote:
With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.

Which of the following is an assumption on which the argument relies?

a) Each year, new companies starting up create more new jobs overall than do previously established companies.

b) Companies established last year will not add a greater number of jobs overall this year than they did last year.

c) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.


d) This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies.

e) The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year.



Please explain your answer and also the reason why each of the other answer choices are wrong.

Thanks!




Correct Answer Should be C


Conclusion: Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.
New jobs must NOT be created by some alternate way.

The conclusion talks about the number of companies .

For Derdia to break its record for new jobs created and the number of companies to start up this year to be atleast equal to last year, the number of jobs created per company should be more.

Derdia break its record for new jobs:
Last year 4 companies 3 jobs per company= 12 jobs
1. Increase in number of companies and same number of jobs = 6 companies and 3 jobs per company = 18 jobs(Record Broken)Already stated in Conclusion
OR
2.Same number of companies and increase in number of jobs = 4 companies and 5 jobs per company = 20 jobs
(Record Broken) Alternate way mentioned in C
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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new jobs created = jobs created by new companies + new jobs added by established companies

The stimulus says that the established companies will not be adding as many new jobs as they did last year. Hence for the number of new jobs created this year to be greater than that created last year, number of jobs created by new companies this year should be greater than that created by the new companies last year.
The argument concludes that this can be possible only if number of new companies this year is greater than the number of new companies last year. The conclusion can hold only if we assume that the new companies starting up will not provide substantially more jobs per company than did new companies last year.

Hence C.
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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It cannot be A because there is no clear statement anywhere in the passage saying new companies create more jobs than the established companies on a given year when they are equal in numbers .

To be more precise, the number of jobs created between old and new companies was never compared or discussed. When the old companies don't create more jobs , it says that "unless a record number of new companies start this year" . So it means the number of new companies should be more than the previous year . Say there were
Last year = 5 new companies --- > 50 new jobs | 10 jobs per comp
This year = same 5 new new companies --> 60 new jobs | 12 jobs per comp
But the argument states that the new companies should be more to create more jobs , so the assumption is average number of jobs per company does not increase. ( If it increases , then the number of new companies need not be more than the previous year to achieve more new jobs ) - Option C

Hope I 've not confused you any further :)
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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+1 C

Check my explanations below 8-)

monikaleoster wrote:
With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for the new jobs created.

Which of the following is an assumption on which the argument relies?

A. Each year, new companies starting up create more new jobs overall than do previously established companies. - The argument doesn't talk about trends. Out of scope.
B. Companies established last year will not add a greater number of jobs overall this year than they did last year. - This rephrase a premise already stated in the argument (notice the words in blue).
C. This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.- CORRECT. If there are more new jobs per new company, there is a possibility of reaching a new record.
D. This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies. - We are talking about new jobs. It doesn't matter whether there were lost jobs. (Shell game choice!)
E. The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year. - Same as D

Help with the Explanation of Answer

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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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New post 27 Dec 2012, 01:02
Marcab wrote:
With a record number of new companies starting up in Derderia and with previously established companies
adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year,
previously established companies will not be adding as many new jobs overall as such companies added last
year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for
new jobs created. Which of the following is an assumption on which the argument relies?
A. Each year, new companies starting up create more new jobs overall than do previously established companies.
B. This year, the new companies starting up will not provide substantially more jobs per company than did new
companies last year.
C. Companies established last year will not add a greater number of jobs overall this year than they did last year.
D. This year, the overall number of jobs created by previously established companies will be less than the overall
number of jobs lost at those companies.
E. The number of jobs created in the Derderian economy last year was substantially larger than the number of
jobs lost last year.

OA
after discussions

Familiar stimulus but somewhat tougher answer choices.


This is one of the CR topics which tests quantitative reasoning!
The prompt states that older companies will not add more jobs than newer companies and the argument concludes that a record number of new startups must be formed this year to compensate for the number of jobs lost due to the older companies.
This however does not account for the number of jobs per company
for example if 100 jobs are lost this year then it could be recovered by 100 new startups with 1 job per startup or 5 new startups with 20 jobs per startup.
So for the conclusion to be valid, the new startups will ONLY reach a record number if they offer less number of jobs per startup.
Clear answer choice is B.
I would now recommend process of elimination in these type of questions as I find the best approach to be prethinking.
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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Marcab wrote:
Indeed you are correct Souvik.
Now here is my doubt:
i) Does "....be adding as many new jobs overall ..."means that older companies will not be adding more jobs or does it means that older companies will not be adding the number of jobs equal to the number of jobs added last year. What I mean to say is that can the # of jobs added by established companies this year be more than that of last year? I am played down by "as many as".


With a record number of new companies starting up in Derderia and with previously established companies
adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year,
previously established companies will not be adding as many new jobs overall as such companies added last
year.


Yeah so the prompt means two things:
  • With a record number of new companies starting up in Derderia and with previously established companies
    adding many jobs, a record number of new jobs were created last year in the Derderian economy.
    This means that last year older companies produced a COMPARABLE number of jobs as young companies did. That is if new startups made 100 jobs, the older ones made around 80-120 jobs i.e a comparable figure.
  • This year, previously established companies will not be adding as many new jobs overall as such companies added last year This means that the older companies will not produce as many jobs as they did last year. That is if they produced 120 jobs last year, this year they will produce much less than that. Probably 30-40 or something like that

With the 2 consideration the argument concludes that a VERY high number of startups must hire new jobs this year to compensate. But it assumes that the startups will not make a LOT of new jobs per company.

Does it solve your question?
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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Last Year :
New Companies = 10
Jobs per new company = 10
Total Jobs from new companies = 10*10 = 100
Jobs from old companies = 100
Total Jobs = 200

This Year :
New Companies = 1
Jobs per new company = 1000
Total Jobs from new companies = 1000
Jobs from old companies = 1
Total Jobs = 1001

In this scenario, we can see that although significantly fewer companies were created, the record for number of jobs is broken. The argument assumes that such a situation is not possible and C correctly addresses this assumption.
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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New post 21 Jan 2013, 18:53
bugzor wrote:
Do 'Companies established last year' from C count as 'previously established companies' from the passage?


Hi Bugzor,

The short answer to your question is: Yes. For this year, the companies established last year will be counted as "previously established companies" in the context of the passage.

Hope that helps :)

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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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New post 30 Oct 2013, 19:10
phunneyz wrote:
At first, I left between A and C and then I chose A
After reading explanation, I saw that C is more obvious.

But I'm curious of something here
Total No. of Job created related to variables
1.No. of Established companies (EC)
2.No. of jobs created by EC
3.No. of Start-up companies (SC)
4.No. of jobs created by SC
Then we got the formula : Total No. of Job created = (No. of EC)(No. of jobs created) + (No. of SC)(No. of jobs created)
But... here I thought we know only variable 1,2,4
We still not have value of 3. which is no. of start-up companies this year
From C we know No. of jobs created by SC this year but not the No. of SC that gonna pop up this year.
So if No. SC this yr is high enough to make the whole (No. of SC)(No. of jobs created) high to make new record.

How this argument still hold?
Could anyone please clarify this to me?
Thanks in advance.


The central component of the argument is the following conditional:

NOT Record # of startups --> NOT Record # of new jobs

This conditional is false if there is a record number of new jobs despite not having a record number of new startups. Since other information in the problem rules out existing companies generating more new jobs, the only way the conditional is falsified is if this year's startups create far more jobs per company than last year.

Since the argument assumes that this won't happen, C is the correct response.
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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Although i got it wrong the first time but a bit of logic came up with this explanation :-

Last Year :-
NOs No of Jobs
Startup = 10 100 per company 10 Jobs
Estb Cmpny =10 200
Total = 20 300

This year :-
Now start ups are now Estb Companies
Now if in negation state the new 15 companies create 10jobs per company
Start up = 10 100
Estb Cmpny = 20 150( Cz they will not create more jobs)
Total 250

So in this scenario we will need more Start Up as written in the Stimulus.

Hence the C

I hope this clears up a bit......

But it is cumbersome and certainly not a sub minute thing...
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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New post 13 Jun 2016, 14:44
monikaleoster wrote:
With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for the new jobs created.

Which of the following is an assumption on which the argument relies?

A. Each year, new companies starting up create more new jobs overall than do previously established companies.
B. Companies established last year will not add a greater number of jobs overall this year than they did last year.
C. This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.
D. This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies.
E. The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year.

Help with the Explanation of Answer



My answer would be C as well.

Author concludes that there should be more companies starting up this year when compared to last year, as the total number of jobs added by previously established companies this year when compared to last year is fewer.

The Author is comparing number of companies starting up this year, to number of jobs added by Previously Established Companies (PEC), which is not really apples to apples, unless the author assumes that each new company adds the same number of jobs every year.


A. Each year, new companies starting up create more new jobs overall than do previously established companies. Irrelevant. Author concludes that total number of jobs added by startup companies should be greater than last year and this statement has no relevance to the conclusion.
B. Companies established last year will not add a greater number of jobs overall this year than they did last year. Incorrect. Companies established last year are a subset of "previously established companies". The author already says that previously established companies will not add as many jobs as they did last year.
C. This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year. Correct. The Author is comparing number of companies starting up this year, to number of jobs added by previously established companies, which is not really apples to apples, unless the author assumes that each new company adds the same number of jobs every year.
D. This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies. Irrelevant. This statement just tells you that jobs were added at PE .
E. The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year. Irrelevant. We know that a record number of jobs were added last year. The comparison of jobs added vs lost last year has no relevance.
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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New post 20 Jul 2016, 01:22
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jaituteja wrote:
I could not get why is A wrong??
Can someone help..!!!
Thanks,
Jai


I will explain why A is not the answer. One of the reasons for rejecting A is - use of "average" to account for high "number" (the entire conclusion is about record number), is untenable.
High Average jobs may not best explain (divisor of this ratio n may vary) why the n "number" of start ups may be high this year.

One can see that choice C prevents any one company from contributing heavily to this "record" number, thereby increasing the possibility that the number of start ups will increase substantially this year.


Q With a record number of new companies starting up in Derderia, and with previously
established companies adding many new jobs, a record number of new jobs were created
last year in the Derderian economy. This year, previously established companies will not
be adding as many new jobs overall as such companies added last year. Therefore, unless
a record number of companies start up this year, Derderia will not break its record for
new jobs created.
Which of the following is an assumption on which the argument relies?

A. In a given year, new companies starting up create more new jobs on average than
do previously established companies.
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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New post 12 May 2018, 14:38
Quote:
With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.


Which of the following is an assumption on which the argument relies?

Conclusion: Highlighted above. Please note the underline part. Basically, it says that by only by a record number of companies (significantly large number of new companies) the no. of jobs created this year will break the last year record. Why it is saying only by record number of companies and not mentioning about how many jobs per company create.

(A) Each year, new companies starting up create more new jobs overall than do previously established companies. - Incorrect. This will only compensate the previous establishment, for breaking the record new companies have to over pass jobs created by previous new companies.

(B) Companies established last year will not add a greater number of jobs overall this year than they did last year. - Incorrect. This is already mentioned in the stimulus.

(C) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year. - Correct. New companies will not provide substantially more jobs per company than did new companies last year -> that is why the conclusion mentions that we need record number of companies. Even if the number of jobs created by new companies is low, because we have record number of companies the difference will be compensated. Say last year 4 new company created 40 jobs. This year record number of companies say 40 will create 1 job each ~ 40*1=40.

(D) This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies. - Incorrect. Its understood from the stimulus.

(E) The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year. - Incorrect. Deviates from the conclusion and focuses only on last year.

Answer: (C).
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Re: With a record number of new companies starting up in Derderia and with [#permalink]

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New post 15 May 2018, 11:26
egmat wrote:
bugzor wrote:
Do 'Companies established last year' from C count as 'previously established companies' from the passage?


Hi Bugzor,

The short answer to your question is: Yes. For this year, the companies established last year will be counted as "previously established companies" in the context of the passage.

Hope that helps :)

-Chiranjeev



Previously established companies are not the same as companies established last year
Re: With a record number of new companies starting up in Derderia and with   [#permalink] 15 May 2018, 11:26
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With a record number of new companies starting up in Derderia and with

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