Question: In January 1992, the Sylvanic Exterminator Service of Salem County began a new service concentrating on the removal of bats, rats, and mice. Revenue increased twofold by the end of the year. However, since 1991 more people in Salem County have been taking care of their extermination problems on their own, and the extermination industry’s revenues have been dropping because of it. Sylvanic Exterminator Service has reported no such loss in revenue.

Which one of the following statements, if true, would best explain the above paradox?

1. The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since.
2. In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998.
3. People would rather take care of the pest problems themselves because it is less expensive.
4. The bat, rat, and mouse populations of Salem County have increased significantly since 1991.
5. The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.

Answer: E
Explanation: Analytical and critical thinking skills are evaluated on the critical reasoning section of the GMAT. A person needs to have high cognitive abilities to respond clearly.
Since its 1992 audit, Sylvanic Exterminator Service has had to be very careful with its accounts. so revenue hadn't doubled? That contradicts a stem statement. incorrect
Sylvanic upgraded all poison sprayers in 1990, generating a debt that will not be paid off until 1998. Revenues are unaffected by debt. Since improving sprayers cannot explain how Sylvanic quadrupled its income, if individuals have started doing extermination themselves, it will be a large leap to believe that just because Sylvanic has upgraded sprayers, people prefer it over other exterminators/themselves.
Because it's cheaper, people choose DIY pest control. that explains a stem statement. doesn't explain Sylvanic's huge sales.
Since 1991, Salem County bat, rat, and mouse populations have grown. Sylvanic's new extermination service may be needed. How do these two elements prove that Sylvanic did this extermination alone? Sylvanic starts a
service to prevent population growth, although people can still do it themselves.
Sylvanic Exterminator Service's new pest service has offset its service losses.
This shows that Sylvanic's new service brought in more income than others and compensated for the industry's loss of revenue in other sorts of extermination when individuals did it themselves. This meets all argument requirements and explains the dilemma.

A: Incorrect
It is an incorrect answer. Even with meticulous bookkeeping, they might still be profitable.

B: Incorrect
It is an incorrect choice. Despite the efficiency of their equipment, they can still be losing money to the DIY crowd.

C: Incorrect
It is the wrong choice. This doesn't explain why Sylvanic continued to earn the same amount of money, either.

D: Incorrect
It is an incorrect choice. Close, but the idea suggests that people might be able to get rid of these pests on their own without the aid of experts.

E: Correct
It is the correct answer. Sylvanic has provided a new service in order to make up for the possible revenue loss.

“In January 1992, the Sylvanic Exterminator Service of Salem” – is a  GMAT Critical question. To answer the question, a candidate can either find a piece of evidence that would weaken the argument or have logical flaws in the argument. GMAT critical reasoning tests the logical and analytical skills of the candidates. This topic requires candidates to find the argument's strengths and weaknesses or the logical flaw in the argument. The GMAT CR section contains 10 -13 GMAT critical reasoning questions out of 36 GMAT verbal questions.

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