Last year Ranger Airways' annual report showed an increase in the number of revenue passenger miles (the total for all...

GMAT Critical Reasoning : (CR) Questions

Source: Official Guide

Critical Reasoning

Paradox

MEDIUM

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Notes

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Last year Ranger Airways' annual report showed an increase in the number of revenue passenger miles (the total for all flights of the number of miles in each flight times the number of paying passengers in that flight). There were, however, declines in both the load factor-the percentage of available seats occupied- and the number of flights.

Which of the following, if true about Ranger Airways in the year reported on, would help most to resolve the apparent paradox between the increase in revenue passenger miles and the decreases in both load factor and number of flights?

The average passenger capacity of airplanes decreased.

The average length of flights increased.

There was an increase in the number of delays in both departures and arrivals.

There was an increase in the number of nonpaying passengers.

Many of the passenger fares became more expensive.

Solution

Passage Analysis:

Text from Passage	Analysis
Last year Ranger Airways' annual report showed an increase in the number of revenue passenger miles (the total for all flights of the number of miles in each flight times the number of paying passengers in that flight).	What it says: Revenue passenger miles went up last year (this measures total miles flown by paying customers) What it does: Sets up the first piece of data that seems positive for the airline What it is: Company report finding Visualization: Let's say revenue passenger miles increased from 100 million to 120 million
There were, however, declines in both the load factor-the percentage of available seats occupied- and the number of flights.	What it says: Two other metrics went down - fewer seats were filled and fewer flights operated What it does: Creates a puzzle by contrasting negative trends with the positive trend from the first statement What it is: Company report finding Visualization: If load factor dropped from 80% to 70% and flights decreased from 1,000 to 800, how did total passenger miles still increase?

Argument Flow:

This passage presents a business paradox rather than a traditional argument. It starts with positive news about revenue passenger miles increasing, then immediately contrasts this with two negative trends - declining load factor and fewer flights. The passage sets up a puzzle that needs resolution.

Main Conclusion:

There is no main conclusion in this passage - it's presenting an apparent contradiction that needs to be resolved by the answer choices.

Logical Structure:

This is a paradox setup where we have three data points that seem to contradict each other. The question asks us to find what could explain how passenger miles increased even though load factor and number of flights both decreased. We need to find a factor that could make this combination possible.

Prethinking:

Question type:

Paradox - We need to find information that explains how seemingly contradictory facts can all be true at the same time

Precision of Claims

Quantitative claims about revenue passenger miles (increased), load factor percentage (decreased), and number of flights (decreased)

Strategy

We need to identify what could allow revenue passenger miles to increase even when both load factor and number of flights decreased. Since \(\mathrm{revenue\ passenger\ miles} = \mathrm{total\ miles\ flown\ by\ paying\ passengers}\), we need scenarios where the remaining flights carried passengers much farther distances, or where the planes themselves got much larger, or where the route structure changed dramatically to compensate for fewer, less full flights

Answer Choices Explained

The average passenger capacity of airplanes decreased.

'The average passenger capacity of airplanes decreased.' This would actually make the paradox worse, not resolve it. If planes had fewer seats available and load factor also decreased, we'd have even fewer passengers flying. With fewer flights, fewer passengers, and no mention of longer distances, revenue passenger miles would definitely decrease, not increase.

The average length of flights increased.

'The average length of flights increased.' This perfectly explains our paradox! Even if we have fewer flights operating and those flights are less full, if each flight covers much more distance on average, then the total passenger miles can still increase. Think of it this way: \(100\) passengers flying \(1,000\) miles each gives us \(100,000\) passenger miles, but \(80\) passengers flying \(1,500\) miles each gives us \(120,000\) passenger miles. Fewer passengers, more total miles due to longer routes.

There was an increase in the number of delays in both departures and arrivals.

'There was an increase in the number of delays in both departures and arrivals.' Delays don't change the fundamental calculation of passenger miles. Whether a flight is on time or delayed, the distance flown and number of paying passengers remain the same. This doesn't help resolve why passenger miles increased despite fewer and less full flights.

There was an increase in the number of nonpaying passengers.

'There was an increase in the number of nonpaying passengers.' This actually works against resolving the paradox. Revenue passenger miles specifically counts only paying passengers. If more passengers were nonpaying, that means fewer of the total passengers were contributing to the revenue passenger miles calculation, making the increase even more puzzling.

Many of the passenger fares became more expensive.

'Many of the passenger fares became more expensive.' Fare prices don't affect passenger miles at all. Revenue passenger miles is purely a calculation of \(\mathrm{distance} \times \mathrm{paying\,passengers}\), not a dollar amount. More expensive fares don't change how far people flew or how many paying passengers there were.

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