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Practice Test: Multi Reasoning Problems - 2 - Notes | Study Integrated Reasoning for GMAT - GMAT

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Directions: Consider each of the following statements. Does the information in the three emails support the inference as stated?

Email - 1
Sent from a coffee shop regional manager to the branch manager.

9:14am – We’re considering changing the prices of our lattes to compete with some of the local mom-and-pop stores. The nearby competition charges $2.50 for their large-size lattes. That is much cheaper than I had thought, and explains why we’ve been losing customers since our current large latte price is $4.00 without any additional syrups. I believe that if we change our price to $3.00, we’ll be able to lure back our old customers and prevent any more of our current regulars from leaving.

Email - 2
Sent from the branch manager to the regional manager.

2:06pm –  I agree that a price-change may be our best bet to keep our current customers happy. However, $3.00 is a big decrease, and I’d suggest we drop the price to $3.75. If we go below $3.50 we will not be able to remain profitable.

Email - 3
Sent from the regional manager to the branch manager.

3:46pm – $3.75 still puts our coffee more than $1 over our competitor’s price. However, we offer syrups which the competition does not. If we charge $3.50 and include one free syrup, we’ll be able to lure customer’s back and stay within profitability.

Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:The regional manager places a higher priority on keeping customers than on profitability.
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:The branch manager would be willing to allow more customers to defect to other coffee houses if profitability was not affected.
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:If the cost per syrup is .50, then the final price will negatively impact the coffee store’s profitability.
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:Both the regional manager and the branch manager share common ground.
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:If the competition also included a free syrup, then the price of $3.50 will likely not stop the flow of customers from the coffee chain to the competition.
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:It is possible to come up with a new price that is profitable and not more or less than 20% of either the branch manager or the regional manager’s initial new price suggestion.
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:The branch manager will not decrease the price below $3.50.
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:The branch manager will personally benefit from keeping the lattes profitable.
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Directions: Consider each of the following statements. Does the information in the three articles support the inference as stated?

Article - 1
From a local Southern California newspaper.

Typically, fewer people vote in local elections that in national ones, but participation can vary widely by state. A new poll has found that more people in California vote in local elections than do people in Nevada, Arizona, and New Mexico combined. This has been attributed to the high number of independent voters in our state, as well as the high enthusiasm for local elections. City councilman Brad Zellman was pleased to see such a high turnout at the recent city council election. “It’s a unique opportunity for local citizens’ votes to carry more weight than they would in big national elections, and it’s great to have so much participation in these smaller campaigns state-wide.”

Article - 2
Editorial from the Opinion section of a competing newspaper.

The recent city council election has seen many a politico claim that the increased voter turnout is due to local citizens wanting to be a part of an election where their vote is proportionally more important. However, it is incorrect to suggest that voting in local elections somehow means your vote “counts more.” True, local politicians make decisions that affect day-to-day operations of our cities, but national politicians make decisions that ultimately affect the outcomes of our lives. When you vote for national figures in larger elections, your vote matters more because you are voting for people who will ultimately have a bigger impact on your life long-term.

Article - 3
Results from recent California elections.

City councilman elections: 13,000 local votes cast (22% of the eligible population voted), 80% of citizens who voted were polled as “extremely satisfied” with the results. District representative elections: 1.9 million votes cast (19% of the eligible population voted), 67% of citizens who voted were polled as “extremely satisfied” with the results.

Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:In the recent election, if everyone who voted in the city councilman elections also voted in the district representative elections, how many of those voters were “extremely satisfied” with both elections?
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Question for Practice Test: Multi Reasoning Problems - 2
Try yourself:The “weight” Zellman describes refers to the scale of political decision-making.
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The document Practice Test: Multi Reasoning Problems - 2 - Notes | Study Integrated Reasoning for GMAT - GMAT is a part of the GMAT Course Integrated Reasoning for GMAT.
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