boldface question : GMAT Critical Reasoning (CR)
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# boldface question

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Senior Manager
Joined: 29 Jan 2011
Posts: 367
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11 Jun 2011, 18:19
00:00

Difficulty:

55% (hard)

Question Stats:

41% (02:32) correct 59% (00:49) wrong based on 17 sessions

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Can you please break this argument into premise and conclusion? Also, why is E incorrect?

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
financial 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 first describes evidence that has been taken
as supporting a conclusion; the second gives a
reason for questioning that support.
(B) The first 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 first provides evidence in support of the
main conclusion of the argument; the second
states that conclusion.
(D) The first 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 first 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.
[Reveal] Spoiler: OA
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Re: boldface question [#permalink]

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13 Jun 2011, 01:50
first statement leads to an intermediate conclusion.
2nd statement gives a possible reason to the main conclusion ' over optimistic'.

A and B match.

B is POE because, the 2nd statement isn't a conclusion itself.

First is definitely a circumstance but a conclusion has been interpreted based on this.
The conclusion is the point of discussion, rather than the statement of evidence itself.
Thus E and D are POE'ed.
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Re: boldface question [#permalink]

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13 Jun 2011, 02:00
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
financial 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 first describes evidence that has been taken
as supporting a conclusion; the second gives a
reason for questioning that support.
(B) The first 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 first provides evidence in support of the
main conclusion of the argument; the second
states that conclusion.
(D) The first 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 first 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.

conclusion : reasoning that because executives buying shares, depositors should not worry, is overoptimistic
premise in support :
* bank executives buying shares
premise ,which is in oppose :
* 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.

A is the answer
Re: boldface question   [#permalink] 13 Jun 2011, 02:00
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