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by nipunkathuria » Sat Jul 31, 2010 12:27 am
Studio executives carefully examine how a film performs on its opening weekend in order to determine whether - and how - to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven't substantially reduced the average marketing cost for films.

C) A film's prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film's financial performance over its lifetime.


The solutions say "A".But i m not able to select between A and E .Why has the author eliminated E answer.?
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Source: — Critical Reasoning |

by nipunkathuria » Sat Jul 31, 2010 12:28 am
Studio executives carefully examine how a film performs on its opening weekend in order to determine whether - and how - to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?


A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven't substantially reduced the average marketing cost for films.

C) A film's prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film's financial performance over its lifetime.


The solutions say "A".But i m not able to select between A and E .Why has the author eliminated E answer.?
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by FightWithGMAT » Sat Jul 31, 2010 5:35 am
nipunkathuria wrote:Studio executives carefully examine how a film performs on its opening weekend in order to determine whether - and how - to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?


A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven't substantially reduced the average marketing cost for films.

C) A film's prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film's financial performance over its lifetime.


The solutions say "A".But i m not able to select between A and E .Why has the author eliminated E answer.?
Executives do not say that they are most inclined to invest more if the opening weekend is good.
They just examine the progress.

Anyways if you read carefully E does not impact the conclusion after you negate the statement.
How a film performs during its opening weekend is NOT a strong indicator of the film's financial performance over its lifetime.
So what.....if not strong...it could still be a decider.

Now negate A

Large marketing investments made before the opening weekend SOMETIMES eventually yield greater profits than small initial marketing investments.

Now it questions the author why he is recommending that studios should initially release all their films on a small scale. There are possibilities to earn greater profits by releasing the films on larger scale too.
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by pradeepkaushal9518 » Sat Jul 31, 2010 10:48 am
stuck betwen A n E

if the film is flop in the first day only then no meaning of large marketing in first week. hence A looks better
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by neha.patni » Sat Jul 31, 2010 11:15 am
nipunkathuria wrote:Studio executives carefully examine how a film performs on its opening weekend in order to determine whether - and how - to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?


A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven't substantially reduced the average marketing cost for films.

C) A film's prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film's financial performance over its lifetime.


The solutions say "A".But i m not able to select between A and E .Why has the author eliminated E answer.?

IMO A

See to get the correct answer you should focus on the conclusion, because the assumption should lead to the conclusion or support the conclusion.

Obvious choice will be A because the if the profits are more in making Large marketing investments before the opening week then the argument is weakened
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by nipunkathuria » Sat Jul 31, 2010 11:32 am
neha.patni wrote:
nipunkathuria wrote:Studio executives carefully examine how a film performs on its opening weekend in order to determine whether - and how - to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?


A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven't substantially reduced the average marketing cost for films.

C) A film's prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film's financial performance over its lifetime.


The solutions say "A".But i m not able to select between A and E .Why has the author eliminated E answer.?

IMO A

See to get the correct answer you should focus on the conclusion, because the assumption should lead to the conclusion or support the conclusion.

Obvious choice will be A because the if the profits are more in making Large marketing investments before the opening week then the argument is weakened

If u look at the option E:-
E) How a film performs during its opening weekend is a strong indicator of the film's financial performance over its lifetime.

If u negate this option as well, it leads to-

How a film performs during its opening weekend is not necessarily a strong indicator of the film's financial performance
over its lifetime....this will make the argument fall apart.
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