Set 1
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.
Explanation
The answer is No. The regional manager is concerned with keeping customers, but there is nothing to indicate that it holds more sway than 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.
Explanation
The answer is No. While the branch manager is concerned with profitability, there is nothing in the passage to support this kind of inference.
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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.
Explanation
The answer is No. The store’s overall profitability depends on a number of factors including the number of lattes sold and the number of syrups sold. If the store is able to sell more lattes and syrups by lowering the price of the lattes and charging 50 cents per syrup, then the store’s overall profitability could actually improve if they sell some syrups at the 50 cent price while offering the first syrup for free. Additionally, if the store makes even ten cents per latter and is able to sell more lattes by lowering the price, management could improve the store’s overall profitability by charging less per latte. There is no guarantee that any final price agreed upon by both parties will necessarily have a negative impact on the store’s overall profitability based solely on the information in the three e-mails.
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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.
Explanation
The answer is Yes. The passage indicates that both are working towards preventing their customers from leaving.
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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.
Explanation
The answer is Yes. $3.50 with a free syrup is still more expensive than $3.00 with a free syrup.
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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.
Explanation
The answer is Yes. In order to stay profitable, the price must remain above $3.50. The initial suggestions for the new price were $3.00 and $3.75. 20% on top of $3.00 is $3.60. 20% decreased from $3.75 is $3.00. As long as the new price is between $3.50 and $3.60, it is possible that is can be within 20% of both initial suggestions AND profitable.
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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.
Explanation
The answer is No. This is too extreme. Although the branch manager is concerned that below $3.50, the lattes will no longer be profitable, there is nothing to indicate that the branch manager is not open to further negotiation regarding the price.
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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.
Explanation
The answer is No. There is nothing in the passage to suggest the branch manager will personally benefit from the profitability of the lattes.
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Set 2
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?
Explanation
The answer is D. Article 3 gives us the information we need. If 13,000 voted in the councilman elections, and 80% of those were satisfied, that is 10,400 people. Those 10,400 were then among the 1.9 million who voted in the representative elections, 67% of whom said they were “extremely satisfied” with this second election. There is no way to tell, however, how many of the 10,400 were among the 67%. It certainly could not be MORE than 10,400, but it could be all, a partial number, or none.
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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.
Explanation
The answer is No. Zellman likely means that your vote carries “more weight” in local elections since “typically fewer people vote in local elections” according to Article 1. This is further established by Article 2, which begins with a refutation of Zellman and the idea that a vote in a local election “counts more.”
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