Answer E

As all narrowed Down to A & E.

But A is Market share (% of total camera sold in market) that has decreased. But the number may have increased than previous years.

Option E clears mentions that Sales has decreased even though there was lot of promotion activity. So CEO's plan will not work.

if CEO wants to increase the production of digicams then i think it is safe to assume that he wants to sell more.Now why A is incorrect, because even if your market share is reduced from earlier year you can still end up selling more cameras. standard maths calculation will do that.

I think the question is clear and answer to it should be E

It was a tough fight between A and E, but i'll go with E.

"As a percentage of digital cameras sold, Digicam's market share decreased over the past twelve months"
Option A above, can be discarded using the following reasoning:

let us suppose that the market demand of digital cameras has increased tremendously and DIgiCam although had increased number in sales was not able to contribute much in the %age share of cameras sold.

In this case, Though sales of Digicam has increased its %age share declined yet this does not strengthen that increasing production of cameras will not work for the company.

Hope this was useful

Each answer entails it own assuption.

I picked D. Why? Because I think that the previous increase made the market become saturated. If last year, everyone who wanted to buy camera already bought Digicam. This year, no more customer => Plan Fail

Why I did not pick E: I think that the coupon and promotion need time to be effective. Maybe the lag time is over one year. THe previous year coupon may lead to increase in sale this year => Plan success.

One again, It is all about assumption and conclusion! What do you think?

We are asked to strengthen the argument that the plan will NOT work or another to say: weaken the CEO's plan.

Choice (D) does not weaken the CEO's plan. We are not allowed to bring in our own assumptions, but only those that are supported by the stem.

How do you know that the previous increase saturated the market?

How do you know that the market is not composed of millions of people who still haven't purchased the digital camera?

Only choice (E) shows why the CEO's plan will not work.


Hope this helps!

Argument -> "increase production of Digicam products" -> Not jus digital camera, but all products.

Between A & E

A -> "percentage of digital cameras sold" -> Talks only about digital cameras

E -> "Sales of Digicam" -> Talks about all products.

So, Answer is E

E it is.

Was tough between A and E..

Choose E,as it sounds more specific

its A
because thats strongly opposing the assumptiom of the ceo

jube wrote:

hardik.jadeja wrote:Its a tight call between A and E. But my choice is E.

OA: E

So why is A wrong? (I chose A )

I chose E
A is wrong because it is only saying that market share of the company dropped. This could be possible that due to sudden demand of the Digital camera, the over market size increased and because company installed production capacity is limited, so its market share dropped. with this assumption, the suggestion by CEO is valid and hence choice is wrong..

Hope this explanation helps you ..

I chose E for this question.
Option A is tricky but I think it is wrong because it talks about a percentage not a number of sales.

E. A is a little close, but E is the right answer.

The number of digital cameras sold in the past year increased dramatically over the number of digital cameras sold in the previous year. The Chief Executive Officer of the corporation that produces Digicam, a popular brand of digital camera, proposes to increase production of Digicam products.

Which of the following statements, if true, would most strengthen the argument that the Chief Executive Officer's plan will NOT work?

Conclusion: CEO: Digicam sales will increase hence proposes to increase its production.

(A) As a percentage of digital cameras sold, Digicam's market share decreased over the past twelve months.
%age share can decrease even if absolute sale increases.
For eg.: Previous year, total sale = 100, DC share = 10%, DC sale = 10
Past year, total sale = 1000, DC share = 8%, DC sale = 80

(B) The lag time between production and shipment of Digicams has decreased during the last twelve months - It strengthen the CEO argument that plan will succeed.

(C) Celebrity endorsements have increased Digicam's brand recognition, but not awareness of the parent corporation - It strengthen the CEO argument that plan will succeed.

(D) Digicam is one of the brands most responsible for the increase in digital camera sales during the last twelve months - It strengthen the CEO argument that plan will succeed.

(E) Sales of Digicam decreased during the last twelve months, despite widespread distribution of coupons in stores and newspapers and on the Internet - Correct as it weaken the CEO argument that plan will succeed or strengthen the claim that Plan will not succeed.

Answer 'E'?
Explanation:
The argument says "The number of digital cameras sold in the past year increased dramatically over the number of digital cameras sold in the previous year".
However "Sales of Digicam decreased during the last twelve months, despite widespread distribution of coupons in stores and newspapers and on the Internet."

Will go with E.

sales of Digital Camera increased. but sales of DigiCamera brand reduced.