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- Thu Mar 04, 2021 3:16 pm
#84872
Complete Question Explanation
Flaw in the Reasoning—Numbers and Percentages. The correct answer choice is (B)
The conclusion of the argument states that the rumored declines in
automobile-industry revenues are exaggerated (a numerical statement), but
the premises provided in support of this argument only address the market
share percentages of the three groups that have automobile-industry
revenues (percentage statements). The percentage statements used by
the author only indicates that the percentages have changed, not whether
overall revenue has changed:
Although the composition of the market has changed in terms of the
market share of each group, this fact tells us nothing about industry
revenues because market shares will always add up to 100% regardless of
the actual dollars involved. Thus, automobile-industry revenues could have
fallen dramatically and the percentages above could still be accurate.
Answer choice (A): Although it is true that the possibility is left open
that the statistics for the manufacturers’ share may come from a different
source, this does not address the fundamental percentage-to-number error
in the argument.
Answer choice (B): This is the correct answer. The answer reveals the
error of the author: the changing market shares of different groups have
no impact on the actual amount of revenues. In all instances, the market
shares will add up to 100%, so a discussion of shifts within this 100%
is meaningless as far as making a determination of whether revenues
declined.
Answer choice (C): This is not a flaw of the argument. The author is
allowed to simply note that the shares changed and use those facts to draw
a conclusion. In the argument the conclusion is faulty, but not for the
reason cited in this answer.
Answer choice (D): The interrelationship of the groups named in the
stimulus is not an issue in determining whether the conclusion is in error.
Answer choice (E): The argument is about revenues, and information
about profits will not describe the error in the reasoning.
Flaw in the Reasoning—Numbers and Percentages. The correct answer choice is (B)
The conclusion of the argument states that the rumored declines in
automobile-industry revenues are exaggerated (a numerical statement), but
the premises provided in support of this argument only address the market
share percentages of the three groups that have automobile-industry
revenues (percentage statements). The percentage statements used by
the author only indicates that the percentages have changed, not whether
overall revenue has changed:
Although the composition of the market has changed in terms of the
market share of each group, this fact tells us nothing about industry
revenues because market shares will always add up to 100% regardless of
the actual dollars involved. Thus, automobile-industry revenues could have
fallen dramatically and the percentages above could still be accurate.
Answer choice (A): Although it is true that the possibility is left open
that the statistics for the manufacturers’ share may come from a different
source, this does not address the fundamental percentage-to-number error
in the argument.
Answer choice (B): This is the correct answer. The answer reveals the
error of the author: the changing market shares of different groups have
no impact on the actual amount of revenues. In all instances, the market
shares will add up to 100%, so a discussion of shifts within this 100%
is meaningless as far as making a determination of whether revenues
declined.
Answer choice (C): This is not a flaw of the argument. The author is
allowed to simply note that the shares changed and use those facts to draw
a conclusion. In the argument the conclusion is faulty, but not for the
reason cited in this answer.
Answer choice (D): The interrelationship of the groups named in the
stimulus is not an issue in determining whether the conclusion is in error.
Answer choice (E): The argument is about revenues, and information
about profits will not describe the error in the reasoning.
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