Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.


Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?



A. The effect noted in the studies is not limited to patrons who have credit cards.


B. Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo.


C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.


D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.


E. The percentage of restaurant bills paid with a given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.


Alright, let’s first try to understand the premises and the conclusion of the argument. 


Premises


Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo.


Hypothesis


simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available.


We need to find an option that supports/ strengthens the hypothesis


A- The effect noted in the studies is not limited to patrons who have credit cards.


The hypothesis is that “seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available” .

If people who do not have credit cards also leave more tips seeing a credit card logo on the bill, the hypothesis goes for a toss. Option A weakens the hypothesis. Eliminate


B- Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo.


The hypothesis says that “seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds the cash they have immediately available”. 

- Those who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo- 


Credit card logo reminds them of the financial pressure, making them tip less

This means that Credit card logo reminds one of one’s spending power. Option B supports the hypothesis.


C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.


Same as A. Eliminate.


D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.


The conclusion says credit card logo reminds credit card holders of their spending power and this is why they leave more tip when they see credit-card logo. Option D says people who pay in cash leave larger tips than those who pay by credit card. This is not in line with the hypothesis. Eliminate.


E. The percentage of restaurant bills paid with a given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.


The brand of the credit card is of no importance to the hypothesis. Eliminate.