Hi
aragonn,
Quote:
I got confused between A and E. Can someone help, My explanation is given below.
So we need to find out choice that justify the flaw in budgeting of city.
A - This choice suggests that every/most public project spending is going beyond it's budget. let just say budget was 100. P and Q were two projects, each with a budget of 20, while spending 30 each. still i left with 40. What my point is that we need more information to conclude that this is a flaw in budgeting.
E - Well if there is no budget then there is nothing. you can't run a project without budget.
I think both of these choices can be answers, but as we need to select one, i would like to go with E. Please help.
Quote:
E) The city of Goshorn does not receive any federal or state funding for its public works projects, although several nearby cities do.
Choice E does not imply that there is
no budget; it simply says that the city does not receive any
federal or state funding for its public works projects. It is certainly possible that Goshorn has several other sources of funding for its public works projects (ie city taxes, revenue from use of city-owned facilities like parking lots or parks, revenue from tickets for traffic violations, etc).
As for choice A, we know that the Sullivan Park project was 50% over budget, but we do not know whether other public works projects were over budget and, if so, by how much. Choice A tells us that every other public works project was over budget by
more than 50% percent, since "the Sullivan Park expansion project featured the
smallest cost-above-budget percentage of all Goshorn’s public works projects." This means that every single public works project in Goshorn was over budget by 50% or more, certainly supporting "the argument that Goshorn has a substantial problem with its budgeting process."