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Graduate Management Admission Test (2022)

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GRE General Test Questions and Answers

Question 1

The following appeared in a letter from the owner of the Sunnyside Towers apartment complex to its manager.

"Last week, all the showerheads in the first three buildings of the Sunnyside Towers complex were modified to restrict maximum water flow to one-third of what it used to be. Although actual readings of water usage before and after the adjustment are not yet available, the change will obviously result in a considerable savings for Sunnyside Corporation, since the corporation must pay for water each month. Except for a few complaints about low water pressure, no problems with showers have been reported since the adjustment. Clearly, modifying showerheads to restrict water flow throughout all twelve buildings in the Sunnyside Towers complex will increase our profits further."

Write a response in which you examine the stated and or unstated assumptions of the argument. Be sure to explain how the argument depends on these assumptions and what the implications are for the argument if the assumptions prove unwarranted.

Options:

Buy Now

Answer:

See the detailed answer in explanation.

Explanation:

The given letter is from the owner of the Sunny side apartment complex to the manager of the buildings and it is regarding the replacement of the showerheads in the buildings and the statement is made making an assumption that in the future there would be more profit if they make the same changes to more profits.

The owner has stated bis perspective by taking into account a generalized view point and also given the lack of evidentiary values creates a dearth and paucity in the statements made by the owner. The weakness in the statement is purely created due to the general assumption of the owner and not based on the data or substantial evidence of the observation made in the changes in the building.

The Drawbacks have been mentioned by the owner but they have not been considered seriously as negative possibilities that might cause them future expenses. The other important aspect is the lack of the consideration given to the various factors. The owners statement are primarily focused on the profits and they negate all other aspects such as the water pressure and the exact data which he clearly states is unavailable till now.

[Without considering the exact usage of the water based on the number of people who

are using, the exact number of shower heads, the total amount of water consumed.

the average supply of water in the building, the totla profit that they might make, the

overheads cost and the cost of installation of the new shower heads all need to

stipulated and then considered on a serious note before they proceed with the

changes.

The owner needs to conduct a proer study of the data rather than making a hyperbolic

assumption that they would meet profits, given that there is not guarantee for the

same.

It is essential for the statement to also consider the extent of profit that they could

make (brought the proposed change.

To conclude, it is essential for the statement postulated in the letter to consider more

comprehensive aspects before arriving at the conclusion that would only undermine

and weaken the perspective of the given letter.

Question 2

Business leaders who prefer centralized, pyramidal managerial structures to diversity and competition tend to (i)_________dissent in the decision-making process. But this insistence on (ii)_________can be dangerous in that it deprives decision makers of a full range of alternatives.

Options:

foster

spontaneity

deprecate

unanimity'

overrate

ambiguity

Question 3

Exhibit.

A group of 3 different investors is to be randomly selected from the 5 investors shown. What is the probability that, for at least 2 of the 3 investors selected, the number of shares of Stock X purchased and then sold will be less than 1.5 times the corresponding number for stock Y?