Please help take a look at this question . I will appreciate your explanation or any strategy you use in answering CR questions like this one.
In the country of Veltria, the past 2 years broad economic recession has included a business downturn in the clothing trade, where sales are down by about 7% as compared to 2 years ago. Clothing wholesalers have found, however, that the proportion of credit extended to retailers that was paid off on time fell sharply in the first year of the recession but returned to its prerecession level in the second year.
Which of the following , if true, most helps to explain the change between the first and the second year of the recession in the proportion of credit being paid off on time?
A. The total amount of credit extended to retailers by clothing wholesalers increased between the first year of the recession and the second year.
B.Between the first and second years of the recession, cloting retailers in Veltria saw many of their costs, rent and utilities increase.
C. Of the considerable number of retailers in Veltria who were having financial difficulties before the recession, virtually all were forced to go out of business during its first year
D. Retailers attempted to stimulate sales in the second year of the recession by discounting merchandise
E. Relatively recession proof segments of the clothing trade , such as work clothes, did not suffer any decrease in sales during the first year of the recession
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Critical Reasoning
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g000fy
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danjuma wrote:Please help take a look at this question . I will appreciate your explanation or any strategy you use in answering CR questions like this one.
In the country of Veltria, the past 2 years broad economic recession has included a business downturn in the clothing trade, where sales are down by about 7% as compared to 2 years ago. Clothing wholesalers have found, however, that the proportion of credit extended to retailers that was paid off on time fell sharply in the first year of the recession but returned to its prerecession level in the second year.
Which of the following , if true, most helps to explain the change between the first and the second year of the recession in the proportion of credit being paid off on time?
A. The total amount of credit extended to retailers by clothing wholesalers increased between the first year of the recession and the second year. % paid off on time = Amount paid off on time / Total credit. Only denominator increase can't explain the change in %
B.Between the first and second years of the recession, cloting retailers in Veltria saw many of their costs, rent and utilities increase. Irrelevant.
C. Of the considerable number of retailers in Veltria who were having financial difficulties before the recession, virtually all were forced to go out of business during its first year. If defaulters are gone, remaining must be good borrowers
D. Retailers attempted to stimulate sales in the second year of the recession by discounting merchandise. Doesn't talk about profits. Sales can increase but profits can decline.
E. Relatively recession proof segments of the clothing trade , such as work clothes, did not suffer any decrease in sales during the first year of the recession Too specific. This particular segment of clothing cannot ensure stabilization for merchants
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goyalsau
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I am really kind of struggling in CR.
Would like to go with A on this one.
Fingers Crossed.
:
Would like to go with A on this one.
Fingers Crossed.
:Saurabh Goyal
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EveryBody Wants to Win But Nobody wants to prepare for Win.
[email protected]
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EveryBody Wants to Win But Nobody wants to prepare for Win.
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alivapriyada
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ov25
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Im with g000fy...
C - most bad are driven out
A: more credit was extended b/w 1 &2nd year - should not guarantee pay off
B: rent and other exp increased b/w 1 &2nd year - should actually put more pressure not to pay off
D: more discounting, more sales - sales lower by 7%; do not see the motivation for paying it off
E: next attractive answer (I fell for this) - however what proportion are these segments in the retailers revenue pie is unknown; even then do not see the motivation for paying it off
C - most bad are driven out
A: more credit was extended b/w 1 &2nd year - should not guarantee pay off
B: rent and other exp increased b/w 1 &2nd year - should actually put more pressure not to pay off
D: more discounting, more sales - sales lower by 7%; do not see the motivation for paying it off
E: next attractive answer (I fell for this) - however what proportion are these segments in the retailers revenue pie is unknown; even then do not see the motivation for paying it off
IMO C. To explain this, we need to only find a choice that tells about an event that happend in first year and not in 2nd year or vice versa.
A. The problem with A is that the argument is in % but A is presented in sums. Usually, a non-favorable choice. It could only be a favorable answer if the credit were extended in the second year.
D. It is saying that retailers "attempted to stimulate sales", which is different from "stimulated sales". The attempt may be successful or failed.
A. The problem with A is that the argument is in % but A is presented in sums. Usually, a non-favorable choice. It could only be a favorable answer if the credit were extended in the second year.
D. It is saying that retailers "attempted to stimulate sales", which is different from "stimulated sales". The attempt may be successful or failed.
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goyalsau
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Thanks Sudanshu.reply2spg wrote:Do OG again
goyalsau wrote:I am really kind of struggling in CR.
Would like to go with A on this one.
Fingers Crossed.
Saurabh Goyal
[email protected]
-------------------------
EveryBody Wants to Win But Nobody wants to prepare for Win.
[email protected]
-------------------------
EveryBody Wants to Win But Nobody wants to prepare for Win.
