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A study this year found that, among citizens of Patria whose tax

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A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post Updated on: 26 Mar 2017, 10:20
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A study this year found that, among citizens of Patria whose tax reports were selected at random for an audit, 21% had prepared their taxes with the assistance of a tax accountant. However, among those whose audits uncovered indications of potential tax fraud, only 3% had prepared their taxes with the assistance of a tax accountant. Clearly, citizens of Patria who prepare their taxes without the assistance of a tax accountant are more likely to commit tax fraud.

The conclusion drawn above depends on which of the following assumptions?

A. Citizens who commit tax fraud with the assistance of a tax accountant are less likely to caught by an audit.
B. Citizens whose records have indications of potential tax fraud are more likely to commit tax fraud than those whose records do not.
C. Tax accountants will ensure that their clients file taxes that are not fraudulent.
D. Some citizens who choose to prepare their taxes without the assistance of a account do so in order to conceal tax fraud.
E. Citizens who prepare their taxes with the assistance of an accountant do so in order to avoid accidentally committing tax fraud.

I am looking for some expert's opinion/take on this question.
It would be great if anyone can please help me with this one.
I am not sure from where "indications of potential tax fraud" is coming into picture in the correct one.
Thank you very much.

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Originally posted by godot53 on 26 Mar 2017, 10:15.
Last edited by godot53 on 26 Mar 2017, 10:20, edited 2 times in total.
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Re: A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 26 Mar 2017, 21:48
expert
please tell me the reasoning behind the correct answer , although i precisely eliminated option C and E , but stuck in A and D , but i were shocked after looking at the correct answer B, in option A i tried negation test and seems the conclusion does not stand and also in D some can be negated with none also this makes sense to me , do not where i am wrong .

please make it understandable
thanks
please make it understandable
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A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 26 Mar 2017, 23:25
nks2611 wrote:
expert
please tell me the reasoning behind the correct answer , although i precisely eliminated option C and E , but stuck in A and D , but i were shocked after looking at the correct answer B, in option A i tried negation test and seems the conclusion does not stand and also in D some can be negated with none also this makes sense to me , do not where i am wrong .

please make it understandable
thanks
please make it understandable


A study this year found that, among citizens of Patria whose tax reports were selected at random for an audit, 21% had prepared their taxes with the assistance of a tax accountant. However, among those whose audits uncovered indications of potential tax fraud, only 3% had prepared their taxes with the assistance of a tax accountant. Clearly, citizens of Patria who prepare their taxes without the assistance of a tax accountant are more likely to commit tax fraud.

The conclusion drawn above depends on which of the following assumptions?

A. Citizens who commit tax fraud with the assistance of a tax accountant are less likely to caught by an audit.
B. Citizens whose records have indications of potential tax fraud are more likely to commit tax fraud than those whose records do not.
C. Tax accountants will ensure that their clients file taxes that are not fraudulent.
D. Some citizens who choose to prepare their taxes without the assistance of a account do so in order to conceal tax fraud.
E. Citizens who prepare their taxes with the assistance of an accountant do so in order to avoid accidentally committing tax fraud.

My take on this :

Conclusion: Citizens of Patria who prepare their taxes without the assistance of a tax accountant are more likely to commit tax fraud.
In order to find an assumption we need to find an option that when negated shatters it.
Linkage :
The argument talks about the scenario where in they have a list of users who could have committed the falsification.
What about the ones who are not detected to have been in that list.
It could be possible that there are users who are not detected but who have committed the falsification of tax records.
3% of the ones detected took help to prepare tax records. so the argument assumes the remaining 97% in the list didn't take help.
Notice how the conclusion talks about people in general not the ones in the list.
If such cases exist we can't say that the conclusion will be true.
So assumption must be the opposite i.e., option B
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Re: A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 27 Mar 2017, 07:45
goforgmat wrote:
nks2611 wrote:
expert
please tell me the reasoning behind the correct answer , although i precisely eliminated option C and E , but stuck in A and D , but i were shocked after looking at the correct answer B, in option A i tried negation test and seems the conclusion does not stand and also in D some can be negated with none also this makes sense to me , do not where i am wrong .

please make it understandable
thanks
please make it understandable


A study this year found that, among citizens of Patria whose tax reports were selected at random for an audit, 21% had prepared their taxes with the assistance of a tax accountant. However, among those whose audits uncovered indications of potential tax fraud, only 3% had prepared their taxes with the assistance of a tax accountant. Clearly, citizens of Patria who prepare their taxes without the assistance of a tax accountant are more likely to commit tax fraud.

The conclusion drawn above depends on which of the following assumptions?

A. Citizens who commit tax fraud with the assistance of a tax accountant are less likely to caught by an audit.
B. Citizens whose records have indications of potential tax fraud are more likely to commit tax fraud than those whose records do not.
C. Tax accountants will ensure that their clients file taxes that are not fraudulent.
D. Some citizens who choose to prepare their taxes without the assistance of a account do so in order to conceal tax fraud.
E. Citizens who prepare their taxes with the assistance of an accountant do so in order to avoid accidentally committing tax fraud.

My take on this :

Conclusion: Citizens of Patria who prepare their taxes without the assistance of a tax accountant are more likely to commit tax fraud.
In order to find an assumption we need to find an option that when negated shatters it.
Linkage :
The argument talks about the scenario where in they have a list of users who could have committed the falsification.
What about the ones who are not detected to have been in that list.
It could be possible that there are users who are not detected but who have committed the falsification of tax records.
3% of the ones detected took help to prepare tax records. so the argument assumes the remaining 97% in the list didn't take help.
Notice how the conclusion talks about people in general not the ones in the list.
If such cases exist we can't say that the conclusion will be true.
So assumption must be the opposite i.e., option B


hi ,
not convinced much by your elaboration can explain further means as what i have asked can you make me understand by options
thanks
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A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 27 Mar 2017, 11:09
godot53 wrote:
A study this year found that, among citizens of Patria whose tax reports were selected at random for an audit, 21% had prepared their taxes with the assistance of a tax accountant. However, among those whose audits uncovered indications of potential tax fraud, only 3% had prepared their taxes with the assistance of a tax accountant. Clearly, citizens of Patria who prepare their taxes without the assistance of a tax accountant are more likely to commit tax fraud.

The conclusion drawn above depends on which of the following assumptions?

A. Citizens who commit tax fraud with the assistance of a tax accountant are less likely to caught by an audit.
B. Citizens whose records have indications of potential tax fraud are more likely to commit tax fraud than those whose records do not.
C. Tax accountants will ensure that their clients file taxes that are not fraudulent.
D. Some citizens who choose to prepare their taxes without the assistance of a account do so in order to conceal tax fraud.
E. Citizens who prepare their taxes with the assistance of an accountant do so in order to avoid accidentally committing tax fraud.



However I selected wrong choice, I can explain POE in following way -
1. Out of 100, 21 prepared taxes with the help of tax accountant.
2. Say 50 people, uncovered indications of potential tax fraud, 3%(~1.2 say 2 people) used tax consultant.
Conclusion - 48 people (who did not use tax consultant) are more likely to commit tax fraud.

So the conclusion is explicitly talking about people who did not use tax accountant. (Option A, C & E out)
D: If people are not deliberately using accountants to conceal tax fraud, their accounts should not indicate potential tax fraud.

Only B stands. But its difficult to defend B alone. :P
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Re: A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 27 Mar 2017, 11:39
Hii,
RMD007,
MY APPROACH WAS THE SAME AS YOU HAVE USED HERE?, BUT HOW WE ELIMINATE (D) ,

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Re: A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 27 Mar 2017, 21:56
Thank you all for the wonderful discussion !!

I have just attached the official explanation, which did not helped me. See if it can help you out.

Official Explanation:
Reading the question: we're given an argument to pick apart. Term matching is a good candidate for any argument, but especially pseudo-syllogistic arguments such as this one, so we can create our filter by looking for a mismatch of terms:

Attachment:
Capture.PNG
Capture.PNG [ 36.61 KiB | Viewed 1329 times ]


Creating a filter: the first two rows highlight the same basic point, which is that, if the study has been conducted in a way such that it is not representative of the population of Patria as a whole, then the audit would be questionable. However, we've been told that the citizens selected for the audit were selected "at random," so they are most likely representative of the population. The most basic mismatch is the final one: the term in the conclusion "more likely to commit tax fraud" matches up imprecisely with the concept in the evidence "indications of potential tax fraud." For example, maybe it's typical to demonstrate indications of tax fraud and not commit fraud; maybe the indications are poor predictors overall of whether these people are actually committing the tax fraud more. There's our filter.

Applying the filter: we look for an answer choice that expresses this connection and find (B).

Logical proof: we can use the negation test to see whether (B) is critical to the argument. What if citizens whose records have indications of potential tax fraud are not at all more likely to commit tax fraud? Indeed, then the argument collapses, the higher incidence of these indications then would not constitute evidence of a higher rate of tax fraud in any group. The correct answer is (B).
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Re: A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 28 Mar 2017, 06:58
nks2611 wrote:
Hii,
RMD007,
MY APPROACH WAS THE SAME AS YOU HAVE USED HERE?, BUT HOW WE ELIMINATE (D) ,

Sent from my HM 1S using GMAT Club Forum mobile app


I solved this question by POE and got the correct answer in 1 min and 20 secs.

We are given

21% of all tax reports used the assistance of a tax accountant.

Among Fraud Cases: 3% used Tax Accountant.

Conclusion: Without the assistance people are more likely to commit tax fraud.

We need to find the assumption.

A. Citizens who commit tax fraud with the assistance of a tax accountant are less likely to caught by an audit. : How can we say they are less likely to be caught? May be the mechanism is too strong that what it has detected is 100% valid. So, this is INCORRECT.
B. Citizens whose records have indications of potential tax fraud are more likely to commit tax fraud than those whose records do not. Wait, I am not sure what it is saying. I will come on this later
C. Tax accountants will ensure that their clients file taxes that are not fraudulent. No, this is highly abrupt answer choice. Aren't we biased and saying they have selected people because they were not fraud?
D. Some citizens who choose to prepare their taxes without the assistance of a account do so in order to conceal tax fraud. : Is it really so? So, we are saying people are not selecting accountants because they want to be biased. INCORRECT. We cannot run on our own assumptions. This means we are rejecting the Facts.
E. Citizens who prepare their taxes with the assistance of an accountant do so in order to avoid accidentally committing tax fraud. Again, an Invalid case. We cannot assume this on our own to straighten the point that the survey is biased and people have done this intentionally.

Ok, now we are left with only B, it MUST be the answer.

Let me know in case of any confusion.
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Re: A study this year found that, among citizens of Patria whose tax  [#permalink]

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New post 28 Mar 2017, 14:05
nks2611 wrote:
expert
please tell me the reasoning behind the correct answer , although i precisely eliminated option C and E , but stuck in A and D , but i were shocked after looking at the correct answer B, in option A i tried negation test and seems the conclusion does not stand and also in D some can be negated with none also this makes sense to me , do not where i am wrong .

please make it understandable
thanks
please make it understandable


Hi Lets use negation

Stimulus says that more instances (as a percentage) of potential tax frauds translates to greater tendency for committing fraud. Now the gap is between "potential fraud indications" and actual fraud, which option B bridges.

A. Citizens who commit tax fraud with the assistance of a tax accountant are less likely to caught by an audit. - This is just the opposite of the required assumption. If this were true then, it would imply that citizens who use accountants also commit fraud (but they are not caught)
B. Citizens whose records have indications of potential tax fraud are more likely to commit tax fraud than those whose records do not. - explained
C. Tax accountants will ensure that their clients file taxes that are not fraudulent. - This is not a required assumption. If this is not true, even then the argument holds. What if the citizens who use accountants ensure that they don't commit fraud, not the accountants.
D. Some citizens who choose to prepare their taxes without the assistance of a account do so in order to conceal tax fraud. - This is not a required assumption. What if they choose not to involve an accountant because of some other reason, lets say their don't want to spend extra bucks. That doesn't affect their tendency to commit fraud.
E. Citizens who prepare their taxes with the assistance of an accountant do so in order to avoid accidentally committing tax fraud. - Similar reasoning as in option D
Re: A study this year found that, among citizens of Patria whose tax &nbs [#permalink] 28 Mar 2017, 14:05
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