A corporation's directors have identified the following shortcomings in the corporation's computer-related systems:The office computers and Internet c...
GMAT Multi Source Reasoning : (MSR) Questions
A corporation's directors have identified the following shortcomings in the corporation's computer-related systems:
- The office computers and Internet connections are slow and inefficient, hindering employee productivity.
- The security system is too old to effectively safeguard the computers against potential theft of corporate data.
- The corporate website is unattractive and difficult for customers to use.
To address such concerns, the directors are considering recommendations about five possible upgrades to the corporation's computer-related systems.
For each of the following officials of the corporation, select Yes if the information provided suggests that the official would probably regard upgrading the Internet connections as a higher priority than upgrading the payroll system. Otherwise, select No.
OWNING THE DATASET
Understanding Source A: Text - Directors' Assessment of System Deficiencies
Information from Dataset | Analysis |
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"The office computers and Internet connections are slow and inefficient, hindering employee productivity" |
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"The security system is too old to effectively safeguard the computers against potential theft of corporate data" |
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"The corporate website is unattractive and difficult for customers to use" |
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"directors are considering recommendations about five possible upgrades" |
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Summary: Directors have identified three major technology problems affecting productivity, security, and customer experience, and are evaluating five possible upgrades to address these issues.
Understanding Source B: Text - Senior Leadership Priorities Discussion
Information from Dataset | Analysis |
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"CFO urges that the directors give a higher priority to upgrades that are projected to cause a greater increase in annual profits" |
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"CEO recommends that upgrades that are projected to result in a greater increase in the corporation's stock market value...be given a higher priority" |
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"CTO argues that, if the non implementation of any upgrade is projected to result in a greater decrease in annual profits...that upgrade should be given a higher priority" |
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"All parties agree that, other things being equal, less expensive upgrades should be given higher priority" |
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"The proposed upgrade to the security system or to the payroll system would require that the proposed upgrade to the office computers be completed first" |
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Summary: Senior executives have different prioritization criteria (profit increase, stock value, loss prevention) but agree on cost efficiency, while technical dependencies mean office computers must be upgraded before security or payroll systems.
Understanding Source C: Table - Projected Impacts of Five Upgrades
Table Analysis:
Office computers:
- Highest expense (tied with security)
- High stock value increase, but low profit increase
- Medium profit decrease if not implemented
- Inference: Expensive but necessary foundation upgrade
- Linkage to Source A: Addresses productivity problem identified by directors
- Linkage to Source B: Required prerequisite for other upgrades
Payroll system:
- Medium expense with medium stock value increase
- Low profit increase and low risk if not done
- Inference: Modest upgrade with limited impact
- Linkage to Source A: Not mentioned in original problems - unclear why included
- Linkage to Source B: Depends on office computer upgrade first
Security system:
- High expense with minimal benefits (low stock increase, no profit increase)
- Highest risk if not implemented (high profit decrease)
- Inference: Pure risk mitigation investment
- Linkage to Source A: Directly addresses data theft vulnerability
- Linkage to Source B: Perfect example of CTO's loss-prevention priority
Website:
- Lowest expense with balanced benefits
- Medium increases in both stock value and profits
- No risk if not implemented
- Inference: Most cost-effective opportunity
- Linkage to Source A: Fixes customer experience issues
- Linkage to Source B: Appeals to both CEO (stock) and CFO (profit) priorities
Internet connections:
- Medium expense with highest profit increase potential
- Low stock value increase, no downside risk
- Inference: Strong operational improvement opportunity
- Linkage to Source A: Addresses other half of productivity problem
- Linkage to Source B: Strongly aligns with CFO's profit focus
Summary: The projections reveal that upgrades serve different purposes - security mitigates risk, website and internet offer growth opportunities, while office computers provide necessary foundation despite high cost.
Overall Summary
- The dataset reveals a complex technology upgrade decision where directors identified three critical problems (productivity, security, customer experience)
- Directors must choose among five possible upgrades with different cost-benefit profiles
- Executive disagreement reflects fundamental trade-offs: security upgrade prevents major losses but generates no gains
- Website and internet upgrades offer profit growth with no downside risk
- Technical dependencies complicate matters further, as the expensive office computer upgrade must precede either security or payroll implementations
- The absence of a clearly optimal choice explains why leadership remains divided on priorities
Question Analysis
The question asks whether each executive (CFO, CEO, CTO) would rank upgrading Internet connections as more important than upgrading the payroll system, based on their stated priorities. Key constraints include:
- Must compare specifically Internet connections vs. payroll system
- Must apply each executive's unique priority criteria
- Both upgrades have same expense level (medium)
The answer type needed is a comparative evaluation based on executive priorities.
Connecting to Our Analysis
The analysis links each executive's priority to the relevant projection metric. We can extract comparative values for Internet connections and payroll system related to those metrics. All necessary data is available in the provided analysis to answer this question completely.
Extracting Relevant Findings
The comparison of Internet connections versus payroll system using each executive's priority metric shows that both upgrades have medium expense, so cost is neutral in comparison. Each executive prefers the upgrade with the better score in their priority area.
CFO Evaluation
The CFO prioritizes the upgrade that increases annual profits the most.
- Internet connections have high profit increase
- Payroll system has low profit increase
- Difference: Internet connections provide significantly higher profit increase than payroll system
- Result: CFO would prioritize Internet connections over payroll
CEO Evaluation
The CEO prioritizes the upgrade that improves stock market value the most.
- Internet connections have low stock market value increase
- Payroll system has medium stock market value increase
- Difference: Payroll system provides better stock market value increase than Internet connections
- Result: CEO would not prioritize Internet connections over payroll
CTO Evaluation
The CTO prioritizes upgrades where not implementing causes greater decrease in profits.
- Internet connections have no decrease in profits risk if not upgraded
- Payroll system has low decrease in profits risk if not upgraded
- Difference: Payroll system poses some risk of profit decrease, Internet connections pose none, making payroll more urgent for CTO
- Result: CTO would not prioritize Internet connections over payroll
Individual Statement/Option Evaluations
Statement 1 Evaluation
Evaluating "Yes" - whether executives would prioritize Internet connections over payroll system.
- Criterion: Majority executive preference for Internet connections
- Evidence: Only CFO prefers Internet connections (1 out of 3 executives)
- Analysis: CEO and CTO both prefer payroll system over Internet connections
- Conclusion: "Yes" represents the minority position (33% of executives)
Statement 2 Evaluation
Evaluating "No" - whether executives would not prioritize Internet connections over payroll system.
- Criterion: Majority executive preference against Internet connections
- Evidence: CEO and CTO prefer payroll system (2 out of 3 executives)
- Analysis: Only CFO prefers Internet connections over payroll system
- Conclusion: "No" represents the majority position (67% of executives)
Systematic Checking
Verification confirms the following points:
- Both upgrades have identical expense (medium), so cost does not bias the decision
- Each executive's priority metric clearly distinguishes between the two upgrades
- There are no technical dependencies affecting these two upgrades specifically
- Analysis is consistent with stated executive priorities from the provided sources
The final executive preference breakdown is: CFO: Yes, CEO: No, CTO: No.
Final Answer
- Statement 1: No (minority preference)
- Statement 2: Yes (majority preference)
The CFO
The CEO
The CTO