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Company X experienced

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by sameerballani » Sat Jun 18, 2011 11:01 am
Company X experienced a significant loss of market share over a number of years. To strengthen its market position, the company decided two years ago to increase the percentage of total revenue devoted to research and development. The following year, the company's market share increased by 10 percent. In response, company management further increased the amount of money devoted to research and development.

Which of the following investigations is most likely to yield significant information that would help evaluate whether the company's decision to further increase the research and development budget was warranted?

A)Determining how many new products the company has created over the past year
B)Determining the percentage of revenue that other companies devote to research and development
C)Determining whether any of the company's competitors have withdrawn from the market in the past two years
D)Determining the maximum percentage of revenue that the company can devote to research and development without affecting the company's production budget
E)Determining whether all of the company's new products have fared equally well in the marketplace

[spoiler]OA:L8r[/spoiler]
Please discuss why incorrect options are wrong.

Thanks
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Source: — Critical Reasoning |
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by Frankenstein » Sat Jun 18, 2011 11:31 am
Hi,
All options except C seem to be irrelevant.
Cheers!

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by sameerballani » Sat Jun 18, 2011 11:35 am
Frankenstein wrote:Hi,
All options except C seem to be irrelevant.
i was stuck between C and D, but finally chose D :(
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by smackmartine » Sat Jun 18, 2011 11:45 am
IMO C
Best way to answer evaluate type question is to convert statements into question and provide polar opposite response. If the conclusion / argument becomes strong or weak on change of these polar responses, answer is correct, but if neutral its incorrect.

A) how many new products the company has created over the past year ? (100000 / 0 ---> doesn't matter)
B) what is the percentage of revenue that other companies devote to research and development? (100 % / 0% ---> doesn't matter)
C) whether any of the company's competitors have withdrawn from the market in the past two years? (Yes--> weakens, NO--> strengthens) Correct
D) what's the maximum percentage of revenue that the company can devote to research and development without affecting the company's production budget? (0% / 100% ---> doesn't matter)
E) whether all of the company's new products have fared equally well in the marketplace? (yes/no ---> doesn't matter)
Smack is Back ...
It takes time and effort to explain, so if my comment helped you please press Thanks button :)
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by Frankenstein » Sat Jun 18, 2011 11:47 am
sameerballani wrote:
Frankenstein wrote:Hi,
All options except C seem to be irrelevant.
i was stuck between C and D, but finally chose D :(
Oh..I think I got this correct in my prac. test(took more than a month ago) although I remember taking more than 2mins for this. You must be convinced after the test why D is wrong?
Cheers!

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by cyrwr1 » Sat Jun 18, 2011 1:16 pm
IMO C
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by sameerballani » Sat Jun 18, 2011 10:47 pm
Frankenstein wrote:
sameerballani wrote:
Frankenstein wrote:Hi,
All options except C seem to be irrelevant.
i was stuck between C and D, but finally chose D :(
Oh..I think I got this correct in my prac. test(took more than a month ago) although I remember taking more than 2mins for this. You must be convinced after the test why D is wrong?
not entirely convinced :(
So still trying to understand.
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