President of the Smalltown Chamber of Commerce: In the past

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President of the Smalltown Chamber of Commerce: In the past decade, the businesses in Smalltown have reported average profits of 15% above inflation. The mayor of Smalltown has explained this by citing decreased crime and a growing population, but he is incorrect. In reality, this increase in profitability is not due to these factors, but rather to the sharing of business acumen and market research that occurs at the monthly Chamber of Commerce meetings.

Which of the following, if true, best supports the President of the Smalltown Chamber of Commerce's attribution of the increased profits to her organization's meetings?


A Crime has decreased throughout the state, and the businesses in other towns with similar populations have seen similar profits in the past ten years.

B The growth of Smalltown's population has primarily been due to a higher birth rate, which has traditionally been associated with a drop in crime.

C Members of Smalltown's Chamber of Commerce cite the friendliness and helpfulness of the group as one of their main reasons for attending meetings.

D The effects of taxes on local businesses may not be immediately apparent in all cases, particularly when populations are fluctuating.

E Businesses in Smalltown whose members did not attend these monthly meetings regularly saw their profits increase only 2% above inflation.

OA E

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by deloitte247 » Sat Feb 02, 2019 8:44 am

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We have to lookout carefully into each option statement and check which of the statement is actually true before we further justify the president's opinion.

Option A :- INCORRECT
We are strictly concerned about Smalltown, and therefore information about other towns are not available , hence we possibly cannot determine the situation of things there. This makes the question irrelevant.

Option B :- INCORRECT
There is no connection between the ideas in this option, drop in crime and birthrate are two independent factors that will have operates differently in their own way to increase the average profit in Smalltown. Drop in crime was not identified as the criteria for rise in population. Hence this option is NOT TRUE.

Option C :- INCORRECT
The impact of the meeting was shared in the conclusive part of the question. which is contrary to the president's conclusion.

Option D :- INCORRECT
The significance of taxes was not brought into play throughout the course of the question. Hence it is an irrelevant addition.

Option E :- CORRECT
This option is emphasizing the significance of the commerce meeting, there exist a huge difference between 2% and 15% , and if according to to statistics such a margin was noticed among those members participating in the meeting compared to the non-participants.. Then the president's observation is much intact.