GRE Task: Showerhead modification saves money

Showerhead modification saves money

For the Sunnyside Towers GRE prompt, the task is to discuss what questions would need to be answered to assess if the prediction is reasonable. (This task can be read on page 6 of the argument pool tasks on the ETS website.)

My Response:

It is not possible to judge whether the prediction that modifying the showerheads to restrict maximum water flow will increase corporation profits. The owner's assumption that the manager is saving on water is unsubstantiated without the before and after data. The manager may be paying larger amounts because the tenants are taking longer showers to adjust to the new showerheads. Another assumption is that the manager is saving money because the tenants are using less water when the tenants may not be using the water at all. Tenants unsatisfied with the new showerheads may be leaving the complex entirely. In this case, the manager would be saving on water but not increasing his profits as he has no tenants paying rent. The last assumption is that all the buildings in Sunnyside have the same number of showerheads and the same concentration of tenants per showerhead. If the logistics of the showerheads and usage are not uniform throughout the buildings, then the assumption that the same modification of more showerheads, will increase profits may be false. Without more usage data and logistical research on the usage within all the buildings, the owner's argument that the new showerhead configurations will increase profits is risky at the manager will face the fine if the prediction is wrong.