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Mainline Airways was bought by its employees six years ago.

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Mainline Airways was bought by its employees six years ago. [#permalink] New post 21 Jul 2008, 00:02
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D
E

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Mainline Airways was bought by its employees six years ago. Three years ago, Mainline hired QualiCo Advertising Agency to handle its promotions and advertising division. Today Mainline’s profits are over 20 percent higher than they were five years ago and 10 percent higher than they were three years ago. Employee ownership and a good advertising agency have combined to make Mainline more profitable.
Which of the following best describes the weak point in the argument above?
(A) It fails to establish a causal connection between the change in ownership at Mainline Airways and the hiring of QualiCo, on the one hand, and the rise in Mainline’s profits, on the other.
(B) It presents no evidence showing that employee-owned airlines are any more profitable than other airlines.
(C) It assumes that the profits of Mainline Airways will continue to rise.
(D) It gives no exact figures for the current profits of Mainline Airways.
(E) It fails to explain how the profits of Mainline Airways are calculated.
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Re: CR: AIRLINES [#permalink] New post 21 Jul 2008, 00:21
IMO (D)

The argument states that, now, the profit is 20% greater than what it was 5 years ago. It could be possible that the profit was very high 7 years ago before the change in the ownership, the sixth year it hit a rock bottom and starting 5th year, the profit is steadily increasing.
Since, the conclusion is "Employee ownership and a good advertising agency have combined to make Mainline more profitable", we cannot say this for certain without knowing the current profits.

What is OA?
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Re: CR: AIRLINES [#permalink] New post 21 Jul 2008, 00:28
Mainline Airways was bought by its employees six years ago. Three years ago, Mainline hired QualiCo Advertising Agency to handle its promotions and advertising division. Today Mainline’s profits are over 20 percent higher than they were five years ago and 10 percent higher than they were three years ago. Employee ownership and a good advertising agency have combined to make Mainline more profitable.
Which of the following best describes the weak point in the argument above?


There is no causation which leads to profits risen.

1- Mainline was bought 6 years ago.
2-It started to advertise 3 years ago

so 2 premises above does not show that employee ownership's change does not lead the advertising decision since 3 years difference exists.

Second point is that comprassion between now and 5 years , it is unclear because it does not compare now and 6-7 years before buying attempt.

So the answer is A

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Re: CR: AIRLINES [#permalink] New post 21 Jul 2008, 00:38
a)
Re: CR: AIRLINES   [#permalink] 21 Jul 2008, 00:38
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Mainline Airways was bought by its employees six years ago.

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