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According to the latest financial figures, the Cyclic Corporation's

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According to the latest financial figures, the Cyclic Corporation's  [#permalink]

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New post 07 Dec 2018, 08:41
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Question Stats:

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According to the latest financial figures, the Cyclic Corporation's profits for the third quarter are up 20% from the same period a year ago.

Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?

a) This year's profits from the second quarter are also up 20% from the same period a year ago.

b) Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.

c) At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters.

d) In previous years, the third quarter has consistently been the most profitable of the year.

e) This year, the dividend paid to shareholders has been increased by 2 cents a share over last year

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Re: According to the latest financial figures, the Cyclic Corporation's  [#permalink]

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New post 08 Dec 2018, 01:34
C must be the potential answer since it correctly explains why there would be a increase in the profit.
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Re: According to the latest financial figures, the Cyclic Corporation's  [#permalink]

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New post 08 Dec 2018, 03:03
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aragonn wrote:
According to the latest financial figures, the Cyclic Corporation's profits for the third quarter are up 20% from the same period a year ago.

Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?

a) This year's profits from the second quarter are also up 20% from the same period a year ago.

b) Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.

c) At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters.

d) In previous years, the third quarter has consistently been the most profitable of the year.

e) This year, the dividend paid to shareholders has been increased by 2 cents a share over last year


What we have:- Profits for the third quarter this year are up by 20% than the profits for the third quarter last year.
What we need:- Overall profits for the whole year has increased than for the last year.

Let's analyze all the statements one by one.

1) Gives information about only the second quarter, no information about 1st and 4th quarter. Eliminated.

2) Irrelevant and Out of Scope because nothing hints about the difference between Frieze Division and Kool Division. Eliminated.

3) If the third quarter is indicative of first, second and fourth quarter, it implies that overall, all quarters have an increase in profits leading to an increase in profit for the whole year. Let's keep it.

4) Tempting. Though it states that 3rd quarter in the most profitable. It produces no data for the 1st, 2nd and 4th quarter. Maybe, the loss in other quarters in more than the profit in the third, which means overall profit may or may not has increased. Eliminated.

5) Since dividends have increased by 2 cents per share, that means overall profits have increased. Since companies usually give out dividend out of profits. Let's Keep it.

So, 1,2 and 4 are eliminated. Let's look over 3 and 5 again. 3 presents a picture which depends on the argument stated whereas 5 could have an outcome in itself with no relation to the argument presented. Stating only 5 in itself could establish the intended result in the question for regardless of whether the third quarter profit has increased or not, higher dividend means higher profit. But that's an assumption we made. Maybe, higher dividends are being for some other reason.

Summarising, IMO, option 3 seems a good fit.
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Re: According to the latest financial figures, the Cyclic Corporation's  [#permalink]

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New post 08 Dec 2018, 11:02
aragonn wrote:
According to the latest financial figures, the Cyclic Corporation's profits for the third quarter are up 20% from the same period a year ago.

Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?

a) This year's profits from the second quarter are also up 20% from the same period a year ago.

b) Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.

c) At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters.

d) In previous years, the third quarter has consistently been the most profitable of the year.

e) This year, the dividend paid to shareholders has been increased by 2 cents a share over last year

Question Explanation:



The phrase the financial figures described above indicates that this is an inference question. The task of the question is indicated by the phrase which of the following, if true, would provide the most support. The subject of the question is concluding…that overall profits for the corporation have increased from last year. The strengthen task transforms this inference question, by providing the conclusion that overall profits have increased from last year. Do not bother breaking the passage into its conclusion, premise, and assumption for inference questions. Instead, focus on what the passage states directly. The correct answer must be true based on the facts in the passage. This argument contains an interpretation of evidence pattern, recognizable by the presence of data in the passage.

The standard assumption in an interpretation of evidence argument is that there’s no other way to interpret the facts. In order to answer the question, the correct answer will provide information that connects the data in the passage with the conclusion that overall profits for the corporation have increased from last year. As the passage provides information only about the third quarter, look for a choice which extends that information to the full year. Evaluate the answer choices.

Choice A: No. This choice is out of scope. While it’s useful to know that This year's profits from the second quarter are also up 20% from the same period a year ago, the first- and fourth-quarter profits are still unknown.

Choice B: No. This choice is out of scope. Knowing which segment of the corporation is responsible for the majority of its profits doesn’t affect the strength of the argument that overall profits for the corporation have increased from last year.

Choice C: Correct. To predict whether or not overall profits for the corporation have increased from last year, the first-, second-, and fourth-quarter profits are needed. This answer provides that information, and it therefore provides the most support.

Choice D: No. This choice is out of scope. The fact that the third quarter has consistently been the most profitable of the year is a relative statement. The absolute profits for the first, second, and fourth quarters are still necessary to provide the best support.

Choice E: No. This choice is out of scope. Dividends paid to shareholders are irrelevant to the question of whether overall profits for the corporation have increased from last year.

The correct answer is choice C.
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Re: According to the latest financial figures, the Cyclic Corporation's  [#permalink]

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New post 21 Dec 2018, 21:17
I have a doubt on this, my doubt is if Quarter 3 remains profitable, then we don't know how this is 20% profitable than that period of previous year. Is this more people agree on that, this means the correct answer.
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Re: According to the latest financial figures, the Cyclic Corporation's  [#permalink]

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New post 22 Dec 2018, 08:00
vicky789 - why you need to know about how? you need to look for an option that give you the prediction for all 4 quarters. Only option C does that.
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Simple strategy:
“Once you’ve eliminated the impossible, whatever remains, however improbable, must be the truth.”

Want to improve your Score:
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My Notes:
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Re: According to the latest financial figures, the Cyclic Corporation's   [#permalink] 22 Dec 2018, 08:00
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