Following a period of lingering malaise after a recent remar

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pmFollowed by: 23 members

by BTGmoderatorDC » Sun Jun 30, 2019 11:54 pm

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Following a period of lingering malaise after a recent remarkable economic upturn in the solar-powered energy sector, Company X, a major maker of solar-powered generators, claimed that its rapid upturn resulted from the inventory still on hand in its warehouse.

Which of the following, if it could be carried out, would be most useful in evaluating the company's hypothesis as to the causes of its rapid economic upturn?

A. Comparing the length of the economic downturn experienced by Company X to the length of the upturn later experienced by Company X
B. Comparing the rapidity of the economic upturn for Company X to that of other major makers of solar-powered generators, which did not have inventory on hand
C. Calculating the average sales increases within the individual business units of Company X
D. Comparing the total number of solar-powered generator sales by Company X just before the economic upturn to the total number of solar-powered generator sales
by Company X just after the economic upturn
E. Using economic theory to predict the most likely date of the next economic upturn for Company X

OA B

Source: Princeton Review

Source: Beat The GMAT — Critical Reasoning | Sun Jun 30, 2019 11:54 pm

deloitte247: Legendary Member; Posts: 2214; Joined: Fri Mar 02, 2018 2:22 pmFollowed by: 5 members

by deloitte247 » Sat Jul 20, 2019 9:26 am

Premise: A major maker of solar powered generators claims that its rapid upturn resulted from the inventory still on hand in his warehouse.
Explanation: After a period of a problem that weakens a group or company, company X claimed that its major upturn is as a result of its inventory still on hand in its warehouse.

OPTION A - INCORRECT
The length between the economic downturn and the company's upturn is not needed in evaluating this argument.

OPTION B - CORRECT
To know the major cause of company's X upturn which can evaluate the argument. The rapidity between the upturn of company X and another company without inventories at hand should be compared to test the hypothesis.

OPTION C - INCORRECT
Merely calculating the average sales increases of the company does not explain the reason for the rapid upturn in the company.

OPTION D - INCORRECT
This is quite useful in determining the sales of generators. It doesn't directly answer to the reason for the rapid upturn in the company.

OPTION E - INCORRECT
This is outside the scope of the argument. The argument is not concerned with predicting the date for the next economic upturn for company X.

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