Rumored declines in automobile-industry revenues are : GMAT Critical Reasoning (CR)
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# Rumored declines in automobile-industry revenues are

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Director
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Rumored declines in automobile-industry revenues are [#permalink]

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24 Aug 2007, 10:50
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67% (02:43) correct 33% (03:06) wrong based on 26 sessions

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Rumored declines in automobile-industry revenues are exaggerated. It is true that automobile manufactures’ share of the industry’s revenues fell from 65 percent two years ago to 50 percent today, but over the same period suppliers of automobile parts had their share increase from 15 percent to 20 percent and service companies (for example, distributors, dealers, and repairers) had their share increase from 20 percent to 30 percent.

Which one of the following best indicates why the statistics given above provide by themselves no evidence for the conclusion they are intended to support?

(A) The possibility is left open that the statistics for manufactures’ share of revenues come from a different source than the other statistics.
(B) No matter what changes the automobile industry’s overall revenues undergo, the total of all shares of these revenues must be 100 percent.
(C) No explanation is given for why the revenue shares of different sectors of the industry changed.
(D) Manufactures and parts companies depend for their revenue on dealers’ success in selling cars.
(E) Revenues are an important factor but are not the only factor in determining profits.
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24 Aug 2007, 11:21
I will choose B..Whats the correct answer ?
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Re: CR: Rumored declines in automobile-industry revenues are [#permalink]

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24 Aug 2007, 12:46
B
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Re: CR: Rumored declines in automobile-industry revenues are [#permalink]

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24 Aug 2007, 12:57
I will revel the OA later but can you guys explain why B and not ACDE?
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24 Aug 2007, 13:09
I think its C
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24 Aug 2007, 13:52
If my understanding is right, this is a weaken question and I feel A weakens the argument. I will be stumped if B is the OA
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24 Aug 2007, 15:33
I would go with C.
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Re: CR: Rumored declines in automobile-industry revenues are [#permalink]

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24 Aug 2007, 16:10
Fistail wrote:
Rumored declines in automobile-industry revenues are exaggerated. It is true that automobile manufactures’ share of the industry’s revenues fell from 65 percent two years ago to 50 percent today, but over the same period suppliers of automobile parts had their share increase from 15 percent to 20 percent and service companies (for example, distributors, dealers, and repairers) had their share increase from 20 percent to 30 percent.

Which one of the following best indicates why the statistics given above provide by themselves no evidence for the conclusion they are intended to support?

(A) The possibility is left open that the statistics for manufactures’ share of revenues come from a different source than the other statistics.
(B) No matter what changes the automobile industry’s overall revenues undergo, the total of all shares of these revenues must be 100 percent.
(C) No explanation is given for why the revenue shares of different sectors of the industry changed.
(D) Manufactures and parts companies depend for their revenue on dealers’ success in selling cars.
(E) Revenues are an important factor but are not the only factor in determining profits.

I would go with C.
The stem says that manufacturers' share of revenue is decreased while dealers' increased. it is negative correlation, which is very rarely seen in between those two sectors. Overal, no reasoning is give to support the rumored decline. Probably, new entrants in manufacturing have started sharing the sector revenue. Thus ones like Ford lost their revenue to Japanese ones while dealers started upping by diversifying their portfolios with new entrants' cars. But no evidence give to support that makes the statistics weak.
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Re: CR: Rumored declines in automobile-industry revenues are [#permalink]

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25 Aug 2007, 00:45
I am for B
Fistail wrote:
Rumored declines in automobile-industry revenues are exaggerated. It is true that automobile manufactures’ share of the industry’s revenues fell from 65 percent two years ago to 50 percent today, but over the same period suppliers of automobile parts had their share increase from 15 percent to 20 percent and service companies (for example, distributors, dealers, and repairers) had their share increase from 20 percent to 30 percent.
Bold part is the conclusion. Premises do not support the conclusion.
Whatever the share of sub-sectors, industry-wide revenue slide is uneffected. B does a good job pointing it

Which one of the following best indicates why the statistics given above provide by themselves no evidence for the conclusion they are intended to support?

(A) The possibility is left open that the statistics for manufactures’ share of revenues come from a different source than the other statistics.
(B) No matter what changes the automobile industry’s overall revenues undergo, the total of all shares of these revenues must be 100 percent.
(C) No explanation is given for why the revenue shares of different sectors of the industry changed.
(D) Manufactures and parts companies depend for their revenue on dealers’ success in selling cars.
(E) Revenues are an important factor but are not the only factor in determining profits.
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25 Aug 2007, 04:18
To show that there is decrease in the total revenue of the automobile industry, data to be given supporting the rumored decline. But the premises are showing the percentages of different market segments of the automobile industry. From these percentages we cannot make out whether there is a decline in the revenue. B-correctly states that.

Director
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Re: CR: Rumored declines in automobile-industry revenues are [#permalink]

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25 Aug 2007, 19:29
thanx everybody

OA is B.
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15 Mar 2012, 08:35
B for me but real tough question i must say
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Re: Rumored declines in automobile-industry revenues are [#permalink]

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24 Apr 2012, 08:24
The source of this Question is PowerScore CR Bible, pg 273. Moderator:please tag.

Knowing total market share is 100%, no matter what happen, direct you to B only.
Re: Rumored declines in automobile-industry revenues are   [#permalink] 24 Apr 2012, 08:24
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