Agro Enterprises currently uses an antiquated database system. Upgrading to a standard contemporary system would cost a moderate amount, whereas...
GMAT Two Part Analysis : (TPA) Questions
Agro Enterprises currently uses an antiquated database system. Upgrading to a standard contemporary system would cost a moderate amount, whereas upgrading to an innovative, cutting-edge system would cost much more. A standard contemporary system is sufficiently energy-efficient that it would pay for itself in 10 years, but no sooner, as compared to the cost of keeping the current system. The annual savings in operational costs offered by the innovative system would cause such a system to pay for its purchase and installation in 5 years, but it would be no more energy-efficient than the current system. Or the company could just keep the current system. Any of the three systems would be able to function for the next 20 years.
Select Standard contemporary system for the option that the passage most strongly suggests is true of the standard contemporary system, and select Innovative, cutting-edge system for the option that the passage most strongly suggests is true of the innovative cutting-edge system. Make only two selections, one in each column.
Phase 1: Owning the Dataset
Argument Analysis Table
| Passage Statement | Analysis & Implications |
|---|---|
| "A standard contemporary system is sufficiently energy-efficient that it would pay for itself in 10 years, but no sooner" |
|
| "The annual savings in operational costs offered by the innovative system would cause such a system to pay for its purchase and installation in 5 years" |
|
| "[Innovative system] would be no more energy-efficient than the current system" |
|
| "Upgrading to an innovative, cutting-edge system would cost much more" |
|
Key Patterns Identified
- Energy Efficiency Ranking: \(\mathrm{Standard} > \mathrm{Current} \geq \mathrm{Innovative}\)
- Operational Cost Ranking: \(\mathrm{Innovative} < \mathrm{Standard} < \mathrm{Current}\)
- Payback Periods: Innovative (5 years) \(<\) Standard (10 years)
Phase 2: Question Analysis & Prethinking
Understanding Each Part
- Part 1 (Standard System): What must be true about the standard contemporary system?
- Part 2 (Innovative System): What must be true about the innovative cutting-edge system?
- Relationship: Each system has distinct characteristics that we can infer from the facts
Valid Inferences Generated
For Standard System:
- It's the most energy-efficient of the three systems (since it's more efficient than current, and innovative is not more efficient than current)
- It has lower operational costs than the current system but higher than the innovative system
For Innovative System:
- It has the lowest operational costs per year (must save significantly to pay for high cost in just 5 years)
- It's not more energy-efficient than the current system
Phase 3: Answer Choice Evaluation
Analyzing Each Option:
"Costs Agro the greatest total amount of money during 11 years of operation"
- This would require calculating total costs including purchase price
- Not directly inferable from given facts
- Cannot determine without specific numbers
"Less energy-efficient than either of the other two database systems"
- For innovative system: We know it's not more efficient than current, and standard is more efficient than current
- So innovative is less efficient than standard, but may equal current
- Not definitively true for either system
"The most energy-efficient of the three database systems"
- For standard system: YES! It's more efficient than current, and innovative is no more efficient than current
- This must be true for the standard system
"Costs Agro, on average, less per year to operate than either of the other systems"
- For innovative system: YES! It must have lowest operational costs to pay for its much higher price in just 5 years
- The math requires this to be true
"Costs Agro, on average, more per year to operate than either of the other systems"
- This contradicts the payback information for both systems
- Neither system would pay for itself if it cost more to operate
Final Answer Selection
Standard Contemporary System: "The most energy-efficient of the three database systems"
- Definitively supported by the facts
- Standard is more efficient than current, innovative is not more efficient than current
Innovative, Cutting-edge System: "Costs Agro, on average, less per year to operate than either of the other systems"
- Must be true given it pays for its much higher cost in only 5 years
- Requires the greatest operational savings