Let's break down E with an example to illustrate how it explains both Fact I (equal acceptance rates within categories) and Fact II (overall higher acceptance rate for domestic films).
Hypothetical Scenario:
Imagine the Barbizon Film Festival has only 2 categories:
Category A (a less prestigious category with higher acceptance rates)
Category B (a more prestigious category with lower acceptance rates)
Now, consider the following distribution of films:
Submissions:
Category A:
100 domestic films
10 foreign films
Category B:
20 domestic films
50 foreign films
Acceptance Rates Within Each Category (Fact I):
Let’s say the acceptance rate in both categories is 50% for both domestic and foreign films:
In Category A, 50 domestic films and 5 foreign films are accepted.
In Category B, 10 domestic films and 25 foreign films are accepted.
Result:
Category A:
Domestic: 50 out of 100 accepted (50%)
Foreign: 5 out of 10 accepted (50%)
Category B:
Domestic: 10 out of 20 accepted (50%)
Foreign: 25 out of 50 accepted (50%)
Within each category, the acceptance rates are identical for domestic and foreign films, fulfilling Fact I.
Overall Acceptance Rates (Fact II):
Total domestic films submitted = 100 (Category A) + 20 (Category B) = 120
Total foreign films submitted = 10 (Category A) + 50 (Category B) = 60
Total domestic films accepted = 50 (Category A) + 10 (Category B) = 60
Total foreign films accepted = 5 (Category A) + 25 (Category B) = 30
Overall acceptance rate for domestic films = 60/120 = 50%
Overall acceptance rate for foreign films = 30/60 = 50%
Here, the number of domestic films submitted to the less competitive Category A (with a higher acceptance rate) is significantly larger, while most foreign films were submitted to Category B (more prestigious, with lower chances of acceptance due to more competition).
As a result:
Fact I is true: The acceptance rates are equal within each category.
Fact II is also true: The overall acceptance rate is higher for domestic films, because more domestic films were submitted to less competitive categories.
Conclusion:
Option E shows that foreign films were disproportionately submitted to more competitive categories (like Category B in this example), explaining why the overall acceptance rate is lower for foreign films, even though within each category, the acceptance rates are identical.