icandy can you help me in negation process, how to do that...means what should be the approach of that? for this question I also reached to ans D, but not by negation process
I would really appte if you explain a process little bit.
Let me try ....
For assumption questions we can try the Assumption-Negation technique to check if the answer choice is right ....
First, You apply the Assumption-Negation technique only on the strong answer contenders after you eliminate the obviously wrong answers (not on all 5 choices). This is because we are short on time on GMAT.Only 2 steps.
1. Logically negate the answer choice under consideration
2. The answer choice that attacks/weakens the conclusion is the correct answer.
Lets take our example
Over the past 5 years, Company X has posted double-digit growth in annual revenues, combined with a substantial improvement in operating margins. Since this growth is likely to persist in the future, the stock of Company X will soon experience dramatic appreciation. Conclusion
The argument above is based on which of the following assumptions?
a) Company X has a large market share in its industry.
b) Prior to the last 5 years, Company X had experienced similarly dramatic growth in sales associated with stable or improving operating margins.
c) The growth of Company X is likely to persist in the future.
d) The current price of the stock of Company X does not fully reflect the promising growth prospects of the firm.
e) The stock of Company X will outperform other stocks in the same industry.
: the stock of Company X will soon experience dramatic appreciation.
The conclusion brings in the new term "stocks". I said new because none of the premises had this word. So the assumption will MOST likely have "stocks" mentioned.
Only choices D and E have the word "stock
Now we have 2 contenders for our answer, Choices D and E. Assumption-Negation technique applied to Choice D :
negate choice D. ----> The current price of the stock of Company X fully reflects
the promising growth prospects of the firm.
does this weaken the argument ? This actually weakens the argument. This is the correct answerAssumption-Negation technique applied to Choice E :
negate choice E. ----> The stock of Company X will NOT
outperform other stocks in the same industry
does this weaken the argument ? This does not affect the argument in any way. The company may or may not perform its competitors, but the company may still have double digit growth.
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