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Does it benefit a company overall to invest in employee training? Companies that invest in comprehensive employee training programs often...

GMAT Data Sufficiency : (DS) Questions

Source: Official Guide
Data Sufficiency
DS-Verbal Reasoning
HARD
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Does it benefit a company overall to invest in employee training?

  1. Companies that invest in comprehensive employee training programs often observe improved job performance among their workforce.
  2. Well-trained employees are likely to excel in their roles and take the company forward.
A
Statement (1) ALONE is sufficient but statement (2) ALONE is not sufficient.
B
Statement (2) ALONE is sufficient but statement (1) ALONE is not sufficient.
C
BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D
EACH statement ALONE is sufficient.
E
Statements (1) and (2) TOGETHER are not sufficient.
Solution

Understanding the Question

Let's clarify what we're being asked: Does it benefit a company overall to invest in employee training?

This is a yes/no question. To have sufficient information, we need to be able to definitively answer either:

  • YES, employee training provides overall benefit to companies, OR
  • NO, employee training does not provide overall benefit to companies

What We Need to Determine

For a definitive answer about "overall benefit," we'd need information that conclusively establishes whether the total benefits outweigh the total costs. This could include:

  • Clear evidence of net positive or negative impact
  • Information that rules out any ambiguity about the complete effect
  • Data that accounts for both benefits AND costs of training

Key Insight

The phrase "overall benefit" is crucial here — it means we need to consider the complete picture, not just positive aspects in isolation. Think of it like a balance sheet: we need to know both sides to determine if there's a net gain.

Analyzing Statement 1

Statement 1: Companies that invest in comprehensive employee training programs often observe improved job performance among their workforce.

What Statement 1 Tells Us

This statement indicates that training programs "often" lead to improved job performance. However, notice two critical limitations:

  • The word "often" means this happens frequently but not always
  • Even when performance improves, we don't know if this improvement translates to overall company benefit

Testing Different Scenarios

Let's explore what could realistically happen:

  • Scenario 1: A company spends $10,000 per employee on training. Performance improves, but the value gained is only $5,000 per employee → No overall benefit (loss of $5,000)
  • Scenario 2: A company spends $10,000 per employee on training. Performance improves, generating $20,000 in value per employee → Overall benefit exists (gain of $10,000)

Since both scenarios are possible under Statement 1, we cannot definitively answer yes or no.

Conclusion

Statement 1 alone is NOT sufficient.

[STOP - Not Sufficient!] This eliminates choices A and D.

Analyzing Statement 2

Now let's completely forget Statement 1 and analyze Statement 2 independently.

Statement 2: Well-trained employees are likely to excel in their roles and take the company forward.

What Statement 2 Provides

This tells us that well-trained employees are "likely" to excel and help advance the company. Again, we face critical limitations:

  • "Likely" indicates probability, not certainty
  • We have zero information about the cost of creating these well-trained employees
  • The phrase "take the company forward" is vague — it doesn't guarantee financial benefit exceeds training costs

Logical Analysis

Consider these realistic possibilities:

  • Possibility 1: Training creates employee excellence but costs $50,000 per person while generating only $30,000 in value → No overall benefit
  • Possibility 2: The "likelihood" of excelling doesn't materialize for 40% of trained employees → Uncertain benefit
  • Possibility 3: Excellence is achieved at a reasonable cost with high success rates → Overall benefit exists

All three possibilities remain completely open under Statement 2.

Conclusion

Statement 2 alone is NOT sufficient.

[STOP - Not Sufficient!] This eliminates choice B (and confirms D is already eliminated).

Combining Statements

Since we've eliminated A, B, and D, we need to check whether combining both statements gives us sufficiency (answer C) or leaves us still insufficient (answer E).

Combined Information

Together, the statements tell us:

  • Training programs often improve performance (Statement 1)
  • Well-trained employees likely excel and advance the company (Statement 2)

Why Together They Still Aren't Sufficient

Even with both pieces of information combined, we still cannot definitively answer the question because:

1. Probabilistic language compounds the uncertainty: Both "often" and "likely" indicate these are tendencies, not guarantees. When you multiply probabilities, certainty decreases further.

2. Critical cost information remains completely missing: We know nothing about:

  • How much training programs cost
  • What the ROI (return on investment) might be
  • Whether the benefits justify the expenses

3. No concrete success metrics: We lack specific data on:

  • What percentage is "often" (60%? 80%?)
  • How much value "excelling" employees actually create
  • Whether unsuccessful cases result in losses

The combined statements paint a generally positive picture but cannot definitively establish that companies benefit overall from training investments. A company could still lose significant money on training despite having some employees with improved performance and excellence — especially if the training is expensive and the success rate is moderate.

[STOP - Not Sufficient!] This eliminates choice C.

The Answer: E

Neither statement alone nor both statements together provide sufficient information to definitively answer whether employee training benefits companies overall.

The fundamental problem is that both statements focus only on potential positive outcomes while completely ignoring the cost side of the equation. Without knowing both benefits AND costs, we cannot determine "overall benefit."

Answer Choice E: "The statements together are not sufficient."

Answer Choices Explained
A
Statement (1) ALONE is sufficient but statement (2) ALONE is not sufficient.
B
Statement (2) ALONE is sufficient but statement (1) ALONE is not sufficient.
C
BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D
EACH statement ALONE is sufficient.
E
Statements (1) and (2) TOGETHER are not sufficient.
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