Target Test Prep 20% Off Flash Sale is on! Code: FLASH20

Redeem
Target Test Prep
5-Day Free Trial
5-day free, full-access trial TTP

Available with Beat the GMAT members only code

MORE DETAILS
Target Test Prep
Magoosh
Magoosh
Study with Magoosh GMAT prep

Available with Beat the GMAT members only code

MORE DETAILS
Magoosh

Market Observer

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Master | Next Rank: 500 Posts
Posts: 439
Joined: Sat Aug 09, 2008 8:32 am
Location: India
Thanked: 34 times
Followed by:28 members

Market Observer

by sivaelectric » Sun May 29, 2011 11:47 am
Market Observer, Summer 2008
Sheltcorp' sales went up 12.6% between 2005 and 2006. Now that its 2007 sales figures have been released, we can see that its sales in 2007 were 38.6% greater than its sales in 2006. Clearly, Sheltcorp has a winning formula and 2008 sales will be higher still.

Which of the following, if true, most seriously weakens the conclusion espoused above?
  • A. Sheltcorp' 2007 sales figures are preliminary and may change by upto 2% when the final figures are calculated.
    B. In 2006 and 2007, at the annual trade show in January Sheltcorp released popular new products that increased Sheltcorp' sales figures for their respective years, but Sheltcorp did not release any new products at the 2008 trade show.
    C. Sheltcorp offers a bonus to its employees based on annual sales.
    D. The 12.6% increase in sales is the smallest annual increase seen in the past five years of Sheltcorp' history.
    E. Economic forces, rather than individual company actions, are often the largest influence on annual sales figures.
If I am wrong correct me :), If my post helped let me know by clicking the Thanks button ;).

Chitra Sivasankar Arunagiri
Top
User avatar
Legendary Member
Posts: 1309
Joined: Mon Apr 04, 2011 5:34 am
Location: India
Thanked: 310 times
Followed by:123 members
GMAT Score:750

by cans » Sun May 29, 2011 1:23 pm
IMO B
Top
Senior | Next Rank: 100 Posts
Posts: 64
Joined: Mon Apr 27, 2009 2:52 pm
Location: Dallas
Thanked: 10 times
Followed by:1 members

by hardikm » Sun May 29, 2011 4:29 pm
Easy one.
Conclusion: Clearly, Sheltcorp has a winning formula and 2008 sales will be higher still.
Premise: Sheltcorp' sales went up 12.6% between 2005 and 2006. Now that its 2007 sales figures have been released, we can see that its sales in 2007 were 38.6% greater than its sales in 2006.

What will weaken the argument?? Part of actual revenue of 2006 were accounted in 2007. Then Sheltcorp did not do any magic but to move its part of the revenue to 2007.
IMO B
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 439
Joined: Sat Aug 09, 2008 8:32 am
Location: India
Thanked: 34 times
Followed by:28 members

by sivaelectric » Sun May 29, 2011 8:22 pm
Yes and easy one. OA B
If I am wrong correct me :), If my post helped let me know by clicking the Thanks button ;).

Chitra Sivasankar Arunagiri
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 150
Joined: Tue Aug 18, 2009 7:36 am
Location: gurgaon
Thanked: 8 times
Followed by:2 members

by itsmebharat » Mon May 30, 2011 1:50 am
Have a look again..
Clearly, Sheltcorp has a winning formula and 2008 sales will be higher still.

B. In 2006 and 2007, at the annual trade show in January Sheltcorp released popular new products that increased Sheltcorp' sales figures for their respective years, but Sheltcorp did not release any new products at the 2008 trade show.

I agree B is the right option, but argument talks about future and the answer is in past, Can someone explains reason behind that.
I am not an Expert, please feel free to suggest if there is an error.
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 234
Joined: Tue Feb 22, 2011 5:02 am
Thanked: 5 times
Followed by:3 members

by champmag » Mon May 30, 2011 1:53 am
+1 for B
Top
User avatar
Legendary Member
Posts: 1309
Joined: Mon Apr 04, 2011 5:34 am
Location: India
Thanked: 310 times
Followed by:123 members
GMAT Score:750

by cans » Mon May 30, 2011 12:36 pm
itsmebharat wrote: I agree B is the right option, but argument talks about future and the answer is in past, Can someone explains reason behind that.
Consider all other options:-
Market Observer, Summer 2008
Sheltcorp' sales went up 12.6% between 2005 and 2006. Now that its 2007 sales figures have been released, we can see that its sales in 2007 were 38.6% greater than its sales in 2006. Clearly, Sheltcorp has a winning formula and 2008 sales will be higher still.

Which of the following, if true, most seriously weakens the conclusion espoused above?

A. Sheltcorp' 2007 sales figures are preliminary and may change by upto 2% when the final figures are calculated.
B. In 2006 and 2007, at the annual trade show in January Sheltcorp released popular new products that increased Sheltcorp' sales figures for their respective years, but Sheltcorp did not release any new products at the 2008 trade show.
C. Sheltcorp offers a bonus to its employees based on annual sales.
D. The 12.6% increase in sales is the smallest annual increase seen in the past five years of Sheltcorp' history.
E. Economic forces, rather than individual company actions, are often the largest influence on annual sales figures.
B) explains the reason why sales in 2006 & 2007 were extraordinary and as that reason is not valid for 2008, thus we can't conclude that winning formula will continue.
Also if you consider other options, A) doesn't weaken the argument
C)actually supports a bit (employees motivated to increase sales)
d) supportive as it says that company generally has high increase in sales.
e) not relevant as such
Thus B is the one.. :)
Top
Post new topic Post Reply
• Page 1 of 1