In January 1992, the Sylvanic Exterminator Service of Salem

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In January 1992, the Sylvanic Exterminator Service of Salem County began a new service concentrating on the removal of bats, rats, and mice. Revenue increased twofold by the end of the year. However, since 1991 more people in Salem County have been taking care of their extermination problems on their own, and the extermination industry's revenues have been dropping because of it. Sylvanic Exterminator Service has reported no such loss in revenue.

Which one of the following statements, if true, would best explain the above paradox?

A. The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since.
B. In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998.
C. People would rather take care of the pest problems themselves because it is less expensive.
D. The bat, rat, and mouse populations of Salem County have increased significantly since 1991.
E. The Sylvanic Exterminator Service's new pest service has compensated for the losses it has been experiencing in the rest of its services.

OA E

Source: Princeton Review

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by deloitte247 » Sat Oct 06, 2018 10:43 pm

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Option A - INCORRECT.
Aside the good service delivery of Sylvanic Exterminator they have also been audited in 1992 and has had to be extremely careful with its bookkeeping ever since.

Option B - INCORRECT.
This option is false in as-much as it wasn't stated in the argument. Also, the incident that occurred In 1990 is not the main reason behind this argument and also the debt to be paid off after Sylvanic upgraded all of its poison sprayers has not been indicated in the argument.

Option C - INCORRECT.
It is possible for people to prefer taking care of their pest problems themselves because it is less expensive, but it is impossible for them to take care of a large number of major pests problem on their own. That is why they need the service of a professional company like Sylvanic Exterminator whose major service is to eradicate pest.

Option D - INCORRECT.
According to the immense sales record of Sylvanic Exterminator, it is reasonable to suggest that bat, rat, and mouse populations of Salem County have increased significantly since 1991, that is why at the beginning of 1992 the county was in dearly need of the company service.

Option E - CORRECT.
This option has proclaimed a paradox in the statement established by Sylvanic Exterminator Service. The new pest service has compensated for the losses it has been experiencing in the rest of its services that is why at the beginning of 1992 the Revenue increased twofold by the end of the year. However, due to the dept paid off the revenues have been dropping because of it, but the company report has claimed no such loss in revenue.

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A. No. Careful bookkeeping doesn't necessarily explain why they're still making money.
B. No. However effective their machinery is, they might still be losing money to the do-it-yourself crowd.
C. No. This still doesn't explain why Sylvanic kept making the same amount of money.
D. No. Close, but the argument indicates that people could be getting rid of these pests without the help of professionals.
E. Yes. Sylvanic has compensated for the potential loss of revenue by offering a different service.