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Investing in real estate would be a profitable venture at [#permalink]
30 Jun 2007, 08:06
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Investing in real estate would be a profitable venture at this time. A survey in House magazine revealed that 85% of the magazineâ€™s readers are planning to buy a second home over the next few years. A study of the real estate industry, however, revealed that the current supply of homes could only provide for 65% of that demand each year.
Which of the following, if true, reveals a weakness in the evidence cited above?
(A) Real estate is a highly labor-intensive business.
(B) Home builders are not evenly distributed across the country.
(C) The number of people who want second homes has been increasing each year for the past ten years.
(D) Readers of House magazine are more likely than most people to want second homes.
(E) House magazine includes articles about owning a second home as well as articles about building a second home.
First I know the only possible answer through elimination is D
I know this has been discussed before, but I just seem to figure out why logically the correct answer is D!
According to me D strengthens the evidence.
1. Assume 500 people in this world
2. Assume 100 people read this magazine
3. 85% of the magazine readers want a second house = 85 people want a new house
4 therefore currently there is a demand for 85 houses
5 houses that can be currently supplied is only 65% of 85 houses , approx 55 houses.
6. So if i want to start a real estate business I know all my houses are going to get sold because there is demand for 85 houses whereas the supply is only 55.
Now what D says is that the magazine readers are most likely to buya second home than the others. Doesn't this strengthen the evidence?