Solve The Problem and Indicate The Best of The Answer Choices Given (q1 To q2)

Solve the problem and indicate the best of the answer choices given (q1 to q2)
1. Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in
oil stocks,
and 7 percent invest in both municipal bonds and oil stocks. If 1 person is to be randomly
selected from the 2,500 people, what is the probability that the person selected will be one
who invests in municipal bonds but NOT in oil stocks?
(A) 9/50
(B) 7/25
(C) 7/20
(D) 21/50
(E) 27/50
2. John deposited $10,000 to open a new savings account that earned 4 percent annual interests,
compounded quarterly. If there were no other transactions in the account, what was the
amount of money in John’s account 6 months after the account was opened?
(A) $10,100
(B) $10,101
(C) $10,200
(D) $10,201
(E) $10,400
Each of the reading comprehension questions is based on the content of a passage. After
reading the passage, answer all questions pertaining to it on the basis of what is stated or
implied in the passage. For each question, select the best answer of the choices given.(q3 to
q7)
According to economic signaling theory, consumers may perceive the frequency with which an
unfamiliar brand is advertised as a cue that the brand is of high quality. The notion that highly
advertised brands are associated with high‐quality products does have some empirical support.
Marquardt and Mc Gann found that heavily advertised products did indeed rank high on certain
measures of product quality. Because large advertising expenditures represent a significant
investment on the part of a manufacturer, only companies that expect to recoup these costs
in the long run, through consumers’ repeat purchases of the product, can afford to spend
such amounts.
However, two studies by Kirmani have found that although consumers initially perceive
expensive advertising as a signal of high brand quality, at some level of spending the
manufacturer’s advertising effort may be perceived as unreasonably high, implying low
manufacturer confidence in product quality. If consumers perceive excessive
1
advertising effort as a sign of a manufacturer’s desperation, the result may be less favorable
brand perceptions. In addition, a third study by Kirmani, of print advertisements, found that the
use of color affected consumer perception of brand quality. Because consumers recognize that
color advertisements are more expensive than black and white, the point at which repetition of an
advertisement is perceived as excessive comes sooner for a color advertisement than for a black‐
and‐white advertisement.
3. Which of the following best describes the purpose of passage?

(A) To show that economic signaling theory fails to explain a finding
(B) To introduce a distinction not accounted for by economic signaling theory
(C) To account for an exception to a generalization suggested by Marquardt and McGann
(D) To explain why Marquardt and McGann’s research was conducted
(E) To offer an explanation for an observation reported by Marquardt and McGann
4. The primary purpose of the passage is to
a. present findings that contradict one explanation for the effects of a particular
advertising practice
b. argue that theoretical explanations about the effects of a particular advertising
practice are of limited value without empirical evidence
c. discuss how and why particular advertising practices may affect consumers’
perceptions
d. contrast the research methods used in two different studies of a particular advertising
practice
e. explain why a finding about consumer responses to a particular advertising practice
was unexpected
5. Kirmani’s research, as described in the passage, suggests which of the following regarding
consumers’ expectations about the quality of advertised products?
a. Those expectations are likely to be highest if a manufacturer runs both black‐and‐
white and color advertisements for the same product.
b. Those expectations can be shaped by the presence of color in an advertisement as
well as by the frequency with which an advertisement appears.
c. Those expectations are usually high for frequently advertised new brands but not for
frequently advertised familiar brands.
d. Those expectations are likely to be higher for products whose black‐and‐white
advertisements are often repeated than for those whose color advertisements are less
often repeated.
e. Those expectations are less definitively shaped by the manufacturer’s advertisements
than by information that consumers gather from other sources.
2
6. Kirmani’s third study, as described in the passage, suggests which of the following
conclusions about a
black‐and‐white advertisement?
a. It can be repeated more frequently than a comparable color advertisement could

before consumers begin to suspect low manufacturer confidence in the quality of the
advertised product.
b. It will have the greatest impact on consumers’ perceptions of the quality of the
advertised product if it appears during periods when a color version of the same
advertisement is also being used.
c. It will attract more attention from readers of the print publication in which it appears
if it is used only a few times.
d. It may be perceived by some consumers as more expensive than a comparable color
advertisement.
e. It is likely to be perceived by consumers as a sign of higher manufacturer confidence
in the quality of the advertised product than a comparable color advertisement would
be.
7. The passage suggests that Kirmani would be most likely to agree with which of the following
statements about consumers’ perceptions of the relationship between the frequency with
which a product is advertised and the product’s quality?
a. Consumers’ perceptions about the frequency with which an advertisement appears

are their
primary consideration when evaluating an advertisement’s claims about product
quality.
b. Because most consumers do not notice the frequency of advertisement, it has little
impact
on most consumers’ expectations regarding product quality
c. Consumers perceive frequency of advertisement as a signal about product quality
only when the
advertisement is for a product that is newly on the market
d. The frequency of advertisement is not always perceived by consumers to indicate that
manufacturers are highly confident about their products’ quality
e. Consumers who try a new product that has been frequently advertised are likely to
perceive the advertisement’s frequency as having been an accurate indicator of the
product’s quality.
Each of the critical reasoning questions is based on a short argument, a set of statements,
or a plan of action. For each question, select the best answer of the choices given.(q8 to q10)
3
8. Following several years of declining advertising sales, the Greenville Times reorganized its
advertising sales force. Before reorganization, the sales force was organized geographically,
with some sales representatives concentrating on city‐center businesses and others
concentrating on different outlying regions. The reorganization attempted to increase the
sales representatives’ knowledge of clients’ businesses by having each sales representative
deal with only one type of industry or of retailing. After the reorganization, revenue from
advertising sales increased. In assessing whether the improvement in advertising sales can
properly be attributed to the reorganization, it would be most helpful to find out which of the
following?
a. What proportion of the total revenue of the Greenville Times is generated by

advertising sales?
b. Has the circulation of the Greenville Times increased substantially in the last two
years?
c. Among all the types of industry and retailing that use the Greenville Times as an
advertising vehicle, which type accounts for the largest proportion of the newspaper’s
advertising sales?
d. Do any clients of the sales representatives of the Greenville Times have a standing
order with the Times for a fixed amount of advertising per month?
e. Among the advertisers in the Greenville Times, are there more types of retail business
or more types of industrial business?
9. The percentage of households with an annual income of more than $40,000 is higher in
Merton County than in any other county. However, the percentage of households with an
annual income of $60,000 or more is higher in Sommer County. If the statements above are
true, which of the following must also be true?
a. The percentage of households with an annual income of $80,000 is higher in Sommer

County than in Merton County.
b. Merton County has the second highest percentage of households with an annual
income of $60,000 or more.
c. Some households in Merton County have an annual income between $40,000 and
$60,000.
d. The number of households with an annual income of more than $40,000 is greater in
Merton County than in Sommer County.
e. Average annual household income is higher in Sommer County than in Merton
County.
10. Cheever College offers several online courses via remote computer connection, in addition to
traditional classroom‐based courses. A study of student performance at Cheever found that,
overall; the average student grade for online courses matched that for classroom‐based
4
courses. In this calculation of the average grade, course withdrawals were weighted as
equivalent to a course failure, and the rate of withdrawal was much lower for students
enrolled in classroom‐based courses than for students enrolled in online courses. If the
statements above are true, which of the following must also be true of Cheever College?
a. Among students who did not withdraw, students enrolled in online courses got higher
grades, on average, than students enrolled in classroom based courses.
b. The number of students enrolled per course at the start of the school term is much
higher, on average, for the online courses than for the classroom based courses
c. There are no students who take both an online and a classroom based course in the
same school term.
d. Among Cheever College students with the best grades, a significant majority takes
online, rather than classroom based, courses.
e. Courses offered online tend to deal with subject matter that is less challenging than
that of classroom based courses.

Solve The Problem and Indicate The Best of The Answer Choices Given (q1 To q2)

Uploaded by

Copyright:

Available Formats

Solve The Problem and Indicate The Best of The Answer Choices Given (q1 To q2)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Solve The Problem and Indicate The Best of The Answer Choices Given (q1 To q2)

Uploaded by

Copyright:

Available Formats

Solve the problem and indicate the best of the answer choices given (q1 to q2)

3. Which of the following best describes the purpose of passage?

4. The primary purpose of the passage is to

a. It can be repeated more frequently than a comparable color advertisement could

a. Consumers’ perceptions about the frequency with which an advertisement appears

a. What proportion of the total revenue of the Greenville Times is generated by

a. The percentage of households with an annual income of $80,000 is higher in Sommer

You might also like