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Expert replies
by [email protected] » Tue Jun 11, 2013 11:02 pm
Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending fi nancial collapse,have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health.
In the argument given, the two boldfaced portions play which of the following roles?
(A) The fi rst describes evidence that has been taken as supporting a conclusion; the second gives a reason
for questioning that support.
(B) The fi rst describes evidence that has been taken as supporting a conclusion; the second states a contrary
conclusion that is the main conclusion of the argument.
(C) The fi rst provides evidence in support of the main conclusion of the argument; the second states that
conclusion.
(D) The fi rst describes the circumstance that the argument as a whole seeks to explain; the second gives the
explanation that the argument seeks to establish.
(E) The fi rst describes the circumstance that the argument as a whole seeks to explain; the second provides
evidence in support of the explanation that the argument seeks to establish.
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Source: — Critical Reasoning |

by [email protected] » Tue Jun 11, 2013 11:04 pm
IMO was B. But OA is A. I can not understand why it is A?? can anybody explain please??
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by magpie16 » Wed Jun 12, 2013 9:13 pm
[email protected] wrote:IMO was B. But OA is A. I can not understand why it is A?? can anybody explain please??
In CR questions, particularly in boldface type questions, it is critical to recognize the premises and conclusion(s) correctly. Words such as because, since, as a result of always signal for premises or evidences.

Here the stimulus has the following premises and conclusions:
Premise "it has become known that several of a bank's top executives have been buying shares in their own bank" is supporting the 1st intermediate conclusion "the bank's depositors have been greatly relieved".
Premise "top executives evidently have faith in the bank's financial soundness" is driving to 2nd intermediate conclusion "those worrisome rumors must be false" which in turn is supporting the 1st intermediate conclusion.
The premise "corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health" is pointing to the final conclusion "Such reasoning might well be overoptimistic" which is attacking the second premise/evidence.

Thus we can see that both the boldfaces in the question are premises/evidences and none of those are conclusions.

Option B says that the second boldface is a conclusion and that is wrong. Option A correctly says that the first boldface is supporting one conclusion and second boldface is providing evidence against the support of that conclusion.
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