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CR-Reasoning

Expert replies
by rashmi.kaushal » Wed Aug 11, 2010 6:22 am
According to the latest financial figures, the Cyclic Corporation's profits for the third quarter are up 20% from the same period a year ago.

Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?

A)This year's profits from the second quarter are also up 20% from the same period a year ago
B)Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.
C)At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters
D)In previous years, the third quarter has consistently been the most profitable of the year.
E)This year, the dividend paid to shareholders has been increased by 2 cents a share over last year.

Why not E ?
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Source: — Critical Reasoning |

by abhigang » Wed Aug 11, 2010 6:33 am
rashmi.kaushal wrote:According to the latest financial figures, the Cyclic Corporation's profits for the third quarter are up 20% from the same period a year ago.

Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?

A)This year's profits from the second quarter are also up 20% from the same period a year ago
B)Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.
C)At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters
D)In previous years, the third quarter has consistently been the most profitable of the year.
E)This year, the dividend paid to shareholders has been increased by 2 cents a share over last year.

Why not E ?

I am trying to rephrase the argument.

Conc : Indication of an increase in overall profits .
premise : Only 3rd quarter profits are up.

Hence , what the author has assumed that 3rd quarter is a reliable indicator of the company's overall performance.
If we scan through the options only C comes closest.

Hence C.

E cannot be the answer for the only reason that it shows an expense which is more than previous years. In a way , it is weakening the conclusion.
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by ptandon » Wed Aug 11, 2010 7:14 am
We are given 3rd qtr profits are higher than prior year. We are concluding that current year profits are higher than prior year. The assumption that 3rd qtr being a good indicator of the rest of the qtrs fills the gap. Hence C.
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by uwhusky » Wed Aug 11, 2010 9:59 am
rashmi.kaushal wrote:According to the latest financial figures, the Cyclic Corporation's profits for the third quarter are up 20% from the same period a year ago.

Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?

E)This year, the dividend paid to shareholders has been increased by 2 cents a share over last year.

Why not E ?
E is out of scope. You're taking outside information such as dividend = profit into GMAT, which will work against you. If you negate E, the conclusion can still stand, hence E is wrong.

Negating C, "the third quarter is NOT consistently a very good indicator of profits in the first, second, and fourth quarters", then the conclusion is weaken, thus C is correct. t
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