Peterson Question

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Peterson Question

by Veronica » Fri Sep 17, 2010 7:43 am
Newspaper publishers earn their profits primarily from advertising revenue, and potential advertisers are more likely to advertise in newspapers with a wide circulation - a large number of subscribers and other readers - than with other newspapers. However, the circulation of the newspaper that is currently the most profitable one in this city has steadily declined during the last two years, while the circulation of one of its competitors has steadily increased.

Any of the following, if true, would help explain the apparent discrepancy between the two statements above EXCEPT:

A. Advertisers generally switch from the most widely circulated newspaper to another one only when the other one becomes the most widely circulated newspaper instead.
B. The number of newspapers competing viably with the most profitable newspaper in the city has increased during the last two years.
C. The most profitable newspaper in the city receives revenue from its subscribers as well from advertisers.
D. The circulation of the most profitable newspaper in the city is still greater than of any of its competitors.
E. Advertising rates charged by the most profitable newspaper in the city are significantly higher than those charged by its competitors.

Please give me the explanation for this question, thank you!

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by g000fy » Fri Sep 17, 2010 10:30 am
Is it D? I explain if D is right

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by debmalya_dutta » Fri Sep 17, 2010 12:09 pm
Veronica wrote:Newspaper publishers earn their profits primarily from advertising revenue, and potential advertisers are more likely to advertise in newspapers with a wide circulation - a large number of subscribers and other readers - than with other newspapers. However, the circulation of the newspaper that is currently the most profitable one in this city has steadily declined during the last two years, while the circulation of one of its competitors has steadily increased.

Any of the following, if true, would help explain the apparent discrepancy between the two statements above EXCEPT:

A. Advertisers generally switch from the most widely circulated newspaper to another one only when the other one becomes the most widely circulated newspaper instead.
B. The number of newspapers competing viably with the most profitable newspaper in the city has increased during the last two years.
C. The most profitable newspaper in the city receives revenue from its subscribers as well from advertisers.
D. The circulation of the most profitable newspaper in the city is still greater than of any of its competitors.
E. Advertising rates charged by the most profitable newspaper in the city are significantly higher than those charged by its competitors.

remember this is an except question stem
so , A explains the discrepancy
B. restates the facts mentioned in the question stem... Hold on to this
C. Probably explains because it shows that the news papers is not solely dependent on the ad money
D explains the discrepancy - as long as the circulation of the currently most profitable newspaper is greater than the circulation of its closest competitor , potential advertisers will spend more in this newspaper .....
E. This also explains why despite declining circulation, it is still the most profitable newspaper

My pick is B

Did you have confusion with any of the options ?



Please give me the explanation for this question, thank you!
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by lokesh r » Fri Sep 17, 2010 12:52 pm
I would pick B.

Statement B explains that due to increased competition the circulation of newspaper has decreased.

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by bvn » Fri Sep 17, 2010 5:49 pm
I vote for D

D. The circulation of the most profitable newspaper in the city is still greater than of any of its competitors.

that does not explain the discrepancy

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by Veronica » Fri Sep 17, 2010 6:06 pm
The answer key is B. Actually, I chose D so when I check the answer key, I can not understand why B is correct and I still confuse with D. Please clarify this question. thank you!

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by Veronica » Fri Sep 17, 2010 7:17 pm
Okie, after studying the explanation of yours, I am not confused with D anymore. Except B, the remains can explain the disparency. D can explain because although the circulation of the most profitable newspapers has declined steadily, it still higher than any other competitors, causing they are still most profitable.

Is my thingking right???

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by olchesss » Sat Sep 18, 2010 4:22 am
Also B,
D states that the circulation of the most popular one is still greater than the others, even though it might me declining. Just think is the most popular newspaper had a circulation of 100 units, then 95, then 90 etc, while the competitors had 50, then 51,then 52 etc. The winner is still the same, even though we can see the trend. The profits of the leader might have declined, but they still are higher than those of the competitors. So D explains the discrepancy.

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by g000fy » Sun Sep 19, 2010 12:57 pm
Sorry, the answer is B. I missed the "Except" in the question :-P

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by ankurmit » Sun Sep 19, 2010 8:43 pm
Please note that we have to choose the stem that explain the apparent discrepancy between the two statements above EXCEPT:

All 4 options except B solves this discrepancy.

Choose B
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Ankur mittal