Dear All,
Had a question regarding Q24 in the critical reasoning section.
The Plexis Corporation, a leading computer chip manufacturer, is currently developing a new chip, which is faster and more efficient than any computer chip currently in use. The new chip will be released for sale in twelve months. Plexis' market research has shown that initial sales of the new chip would be maximized by starting to advertise it now, but the company has decided to wait another six months before doing so.Which of the following, if true, provides the Plexis Corporation with the best reason for postponing advertising its new chip?
(A) Some computer users are reluctant to purchase new computer products when they are first released.
(B) The cost of an advertising campaign capable of maximizing initial sales of the new chip would be no
greater than campaigns previously undertaken by Plexis.
(C) Advertising the new chip now will signifi cantly decrease sales of Plexis' current line of computer chips.
(D) Plexis' major rivals in the computer chip manufacturing business are developing a chip with capabilities
that are comparable to those of Plexis' new chip.
(E) Taking full advantage of the capacities of the new chip will require substantial adjustments in other
segments of the computer industry.
I got the answer as C , but had a doubt regarding elimination of answer D - my line of thinking was different. Wouldn't it make sense for Plexis to postpone its advertising if there is a rival with the same product, since it would provide competition information to improve on its product or is this out of scope of the current question?
The OG Explanation for D- Th is provides a reason for Plexis to begin advertising the new chip as soon as possible-to get out ahead of the competition.
Regards,
Saif
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OG 12th Edition - Critical reasoning Q 24
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killer1387
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let me try :saifn wrote:Dear All,
Had a question regarding Q24 in the critical reasoning section.
The Plexis Corporation, a leading computer chip manufacturer, is currently developing a new chip, which is faster and more efficient than any computer chip currently in use. The new chip will be released for sale in twelve months. Plexis' market research has shown that initial sales of the new chip would be maximized by starting to advertise it now, but the company has decided to wait another six months before doing so.Which of the following, if true, provides the Plexis Corporation with the best reason for postponing advertising its new chip?
(A) Some computer users are reluctant to purchase new computer products when they are first released.
(B) The cost of an advertising campaign capable of maximizing initial sales of the new chip would be no
greater than campaigns previously undertaken by Plexis.
(C) Advertising the new chip now will signifi cantly decrease sales of Plexis' current line of computer chips.
(D) Plexis' major rivals in the computer chip manufacturing business are developing a chip with capabilities
that are comparable to those of Plexis' new chip.
(E) Taking full advantage of the capacities of the new chip will require substantial adjustments in other
segments of the computer industry.
I got the answer as C , but had a doubt regarding elimination of answer D - my line of thinking was different. Wouldn't it make sense for Plexis to postpone its advertising if there is a rival with the same product, since it would provide competition information to improve on its product or is this out of scope of the current question?
The OG Explanation for D- Th is provides a reason for Plexis to begin advertising the new chip as soon as possible-to get out ahead of the competition.
Regards,
Saif
okay C is the best one here.
D:
suppose A and B are developing same product. If you are CEO of A and somehow you happened to know regarding the same product development in B, what would you do? The thing is same here. Getting to know okay he is also developing lets announce it earlier before they announce. Its human tendency "come on man we developed how can they go for it first and take all the name and market".
hope this clarifies ...!!
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Whitney Garner
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Hi Saif!saifn wrote: I got the answer as C , but had a doubt regarding elimination of answer D - my line of thinking was different. Wouldn't it make sense for Plexis to postpone its advertising if there is a rival with the same product, since it would provide competition information to improve on its product or is this out of scope of the current question?
The OG Explanation for D- Th is provides a reason for Plexis to begin advertising the new chip as soon as possible-to get out ahead of the competition.
Regards,
Saif
This is a fun "Explain a Discrepancy" problem - we have to find a fairly clear and obvious reason that a conclusion ISN'T lining up with some given premises. When I say clear or obvious I mean that we don't want to dress up any of the answers, overthink them, or start to build too detailed of a story around them. We need to find the one that does the best job of explaining ON ITS OWN!
So it sounds as if the discrepancy is that the company has decided to hold off advertising early even though it is apparently good for sales. Why?? Something must be outweighing this sales benefit for them to reasonably make this decision.OG 12th, Critical Reasoning #24 wrote: The Plexis Corporation, a leading computer chip manufacturer, is currently developing a new chip, which is faster and more efficient than any computer chip currently in use. The new chip will be released for sale in twelve months. Plexis' market research has shown that initial sales of the new chip would be maximized by starting to advertise it now, but the company has decided to wait another six months before doing so.Which of the following, if true, provides the Plexis Corporation with the best reason for postponing advertising its new chip?
Let's take a quick look at these 2 answer choices again and see why your choice of C was the right one.
Remember, we need to figure out which choice explains the discrepancy OBVIOUSLY and without having to build up a creative story around it.OG 12th, Critical Reasoning #24 wrote: (C) Advertising the new chip now will significantly decrease sales of Plexis' current line of computer chips.
(D) Plexis' major rivals in the computer chip manufacturing business are developing a chip with capabilities that are comparable to those of Plexis' new chip.
You didn't give it to us, but I'm willing to bet that your justification of (C) was likely something similar to the following:
"well if the new chip will hurt Plexis' current sales, that would definitely be a reason to hold off advertising!"
- How much back story did you have to tell? None right! It directly says that it will hurt current sales. The company is weighing current sales against future sales when it makes its decision.
How about your justification of (D):
"Wouldn't it make sense for Plexis to postpone its advertising if there is a rival with the same product, since it would provide competition information to improve on its product or is this out of scope of the current question?"
- Could it provide information to the competition, sure, but enough to make a difference? Do we then have to assume that the competition would be early enough in development to have that information matter (if theirs is nearly done, would they really scrap and start over??). And maybe we want to get out ahead of the competition (ie. iPad v. Samsung tablet!!) so that we appear to be first (advertising early does help according to the argument).
Notice the story board that is running along with this choice. Its not just a simple, yep, cutting sales hurts business! So think about that when you're deciding between 2 choices!
Hope this helps!
Whit
Whitney Garner
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Manhattan Prep
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Math is a lot like love - a simple idea that can easily get complicated
GMAT Instructor & Instructor Developer
Manhattan Prep
Contributor to Beat The GMAT!
Math is a lot like love - a simple idea that can easily get complicated
