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The Plexis Corporation, a leading computer chip

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Director
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The Plexis Corporation, a leading computer chip [#permalink] New post 30 Sep 2011, 05:37
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

80% (01:00) correct 20% (01:02) wrong based on 99 sessions
The Plexis Corporation, a leading computer chip
manufacturer, is currently developing a new chip,
which is faster and more efficient than any computer
chip currently in use. The new chip will be released for
sale in twelve months. Plexis’ market research has
shown that initial sales of the new chip would be
maximized by starting to advertise it now, but the
company has decided to wait another six months
before doing so.
Which of the following, if true, provides the Plexis
Corporation with the best reason for postponing
advertising its new chip?

(A) Some computer users are reluctant to purchase
new computer products when they are fi rst
released.
(B) The cost of an advertising campaign capable of
maximizing initial sales of the new chip would be
no greater than campaigns previously
undertaken by Plexis.
(C) Advertising the new chip now will signifi cantly
decrease sales of Plexis’ current line of
computer chips.
(D) Plexis’ major rivals in the computer chip
manufacturing business are developing a chip
with capabilities that are comparable to those of
Plexis’ new chip.
(E) Taking full advantage of the capacities of the
new chip will require substantial adjustments in
other segments of the computer industry


I got the question right. However, I would like to hear your thoughts on why (E) is wrong. My reasoning with (E) goes like this:

The Plexis corp. is waiting for major changes in other segments of the computer industry that are expected in 6 months. For example, the new chip might have a feature that is not supported by current motherboards. But new motherboards will be announced in 6 months. So the Plexis Corp. decided to wait for that announcement. Had they decided not to wait, it would be useless to market the chip (because, as I have said, the new feature is yet to be supported by motherboards), and the advertisement campaign would result in wasted money.

Any thoughts?


The OA is a slightly better choice.
[Reveal] Spoiler: OA
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Re: The Plexis Corporation [#permalink] New post 01 Oct 2011, 07:17
1
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We are said in the premises that sales of the new chip will be maximized by early advertisement. Even if (E) tells us that it will take time for the computer industry to accomodate, this still will not influence our sales since the initial premises is a FACT. So, no matter what there will be in the industry, if (E) is true, then it is still more profitable to begin advertisment right now, hence (E) is not the right answer.
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Re: The Plexis Corporation [#permalink] New post 30 Sep 2011, 05:50
Here is my opinion -
E does not say when the substantial changes are going to take place. For all we know it might take 2 years.
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Re: The Plexis Corporation [#permalink] New post 30 Sep 2011, 17:56
Answer C
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Re: The Plexis Corporation [#permalink] New post 02 Oct 2011, 08:33
bagrettin, you are right. That's exactly the reason why E is incorrect. Thanks.
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Re: The Plexis Corporation [#permalink] New post 02 Oct 2011, 09:09
E seems redundant here. So i have chosen C
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Re: The Plexis Corporation, a leading computer chip [#permalink] New post 03 Sep 2012, 22:23
E strengthens the premise, not a weakener, because if it does start to advertise now, then the chip peripherals would have better opportunity to make the adjustments, which in turn will help the chip sell more, so IMO C is the correct choice and not E
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Re: The Plexis Corporation, a leading computer chip [#permalink] New post 04 Sep 2012, 08:43
The correct answer is C.
This is the most convincing reason for the company to wait another six months.
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Re: The Plexis Corporation, a leading computer chip [#permalink] New post 16 Sep 2013, 23:55
(D) Plexis’ major rivals in the computer chip
manufacturing business are developing a chip
with capabilities that are comparable to those of
Plexis’ new chip.

This was tricky...
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Re: The Plexis Corporation, a leading computer chip   [#permalink] 16 Sep 2013, 23:55
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