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# BF CR top executives - Challenging one !

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Director
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
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BF CR top executives - Challenging one ! [#permalink]

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01 Jul 2010, 23:07
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Question Stats:

33% (01:53) correct 67% (02:12) wrong based on 86 sessions

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Please POE. Its hard to reach the correct answer on this one.

Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. They might well be overoptimistic, however since corporate executives have sometimes bought shares in their own company in a calculated attempt to dispel negative rumors about the company's health.

In the argument given, the two boldfaced portions play which of the following roles?

A. The first summarizes the evidence used in the reasoning called into question by the argument; the second states the counterevidence on which the argument relies.

B. The first summarizes the evidence used in the reasoning called into question by the argument; the second is an intermediate conclusion supported by the evidence.

C. The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second is evidence that undermines the support for this intermediate conclusion.

D. The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second is the main conclusion of the argument.

E. The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second states a further conclusion supported by this intermediate conclusion.

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Re: BF CR top executives - Challenging one ! [#permalink]

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01 Jul 2010, 23:56
IMO the answer is D...can explain if necessary (and if correct!)

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Director
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Joined: 26 Nov 2009
Posts: 954

Kudos [?]: 918 [0], given: 36

Location: Singapore
Concentration: General Management, Finance
Schools: Chicago Booth - Class of 2015
Re: BF CR top executives - Challenging one ! [#permalink]

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02 Jul 2010, 00:14
toshio86

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Re: BF CR top executives - Challenging one ! [#permalink]

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02 Jul 2010, 03:11
I think it is B. I dont think that the first is an intermediate conclusion as stated in choices C, D and E --- "since top executives evidently have faith.." doesnt seem like a conclusion but more like an evidence... evidences are signaled by SINCE and even though SINCE is not underlined - it is very much a part of the sentence.

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Re: BF CR top executives - Challenging one ! [#permalink]

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02 Jul 2010, 21:59
Agree with B. Doesn't seem like an intermediate conclusion is right

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Re: BF CR top executives - Challenging one ! [#permalink]

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02 Jul 2010, 22:28
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The first boldfaced portion can be seen as an intermediate conclusion in that the bank's depositors believe that:
executives buy their bank's shares>>>thus they trust their bank>>>thus the rumors must be false

The second boldfaced is very simply the conclusion of the author, which is that "the bank's depositors might well be overoptimistic"

The problems with B are two:

- the first boldfaced portion does not "summarize" the evidence, but rather provides an interpretation of its meaning; "summarize" means to say the same in a shorter way, and this is not the case;

- the second boldfaced portion is definitely not an intermediate conclusion, it is te conclusion of the author...if this is an intermediate conclusion, then what would be the author's conclusion???

This 2 aspects should make B the wrong choice...

Kudos [?]: 11 [2], given: 1

Director
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Joined: 26 Nov 2009
Posts: 954

Kudos [?]: 918 [0], given: 36

Location: Singapore
Concentration: General Management, Finance
Schools: Chicago Booth - Class of 2015
Re: BF CR top executives - Challenging one ! [#permalink]

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02 Jul 2010, 22:51
toshio86 Bulls eye !! I agree with reasoning. Can you please analyze E and blot it out as well? thanks

OA is D

toshio86 wrote:
- the second boldfaced portion is definitely not an intermediate conclusion, it is te conclusion of the author...if this is an intermediate conclusion, then what would be the author's conclusion???

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Re: BF CR top executives - Challenging one ! [#permalink]

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02 Jul 2010, 23:04
I agree with D. A, B and C are out because neither statements are evidence. As for E, the second statement is not supported by the intermediate conclusion.

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Re: BF CR top executives - Challenging one ! [#permalink]

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04 Jul 2010, 12:33
IMO D

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Re: BF CR top executives - Challenging one ! [#permalink]

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04 Jul 2010, 23:35
nusmavrik wrote:
toshio86 Bulls eye !! I agree with reasoning. Can you please analyze E and blot it out as well? thanks

OA is D

toshio86 wrote:
- the second boldfaced portion is definitely not an intermediate conclusion, it is te conclusion of the author...if this is an intermediate conclusion, then what would be the author's conclusion???

Ok...

E. The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second states a further conclusion supported by this intermediate conclusion.

The problem with E is that it states that the fact that the depositors are overoptimistic is due to the fact that bankers trust their own bank...which is not true (if the author were to conclude from the first boldfaced portion, he should state that depositors are right in being optimistic)! It is instead due to the fact that bankers could be trying to hide financial problems by buying their own bank's shares...

Hope it helps!

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Re: BF CR top executives - Challenging one ! [#permalink]

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13 Jul 2010, 13:50
I was torn between C and D. Finally picked C....

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Re: BF CR top executives - Challenging one ! [#permalink]

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16 Jul 2010, 06:29
gud1 by toshio86
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consider cudos if you like my post

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Re: BF CR top executives - Challenging one ! [#permalink]

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24 Jul 2010, 04:58
I went for B .......and overlooked C D E because I believed that first part is not a conclusion.......but seems like it was wrong .....but sure second was main conclusion not the first......

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Re: BF CR top executives - Challenging one ! [#permalink]

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31 Jul 2010, 22:03
cD C D CD CD CD CD ...picked C ..

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Re: BF CR top executives - Challenging one ! [#permalink]

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01 Aug 2010, 02:58
aah man picked B....till i read Toshio86's explanation! Good one!

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Re: BF CR top executives - Challenging one ! [#permalink]

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12 Sep 2010, 04:16
No need for POE A & B are definitely wrong coz it doesn't summarize anything And the second boldfaced part is clearly the conclusion the author is trying to draw
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Re: BF CR top executives - Challenging one ! [#permalink]

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12 Sep 2010, 09:11
toshio86 wrote:
The first boldfaced portion can be seen as an intermediate conclusion in that the bank's depositors believe that:
executives buy their bank's shares>>>thus they trust their bank>>>thus the rumors must be false

The second boldfaced is very simply the conclusion of the author, which is that "the bank's depositors might well be overoptimistic"

The problems with B are two:

- the first boldfaced portion does not "summarize" the evidence, but rather provides an interpretation of its meaning; "summarize" means to say the same in a shorter way, and this is not the case;

- the second boldfaced portion is definitely not an intermediate conclusion, it is te conclusion of the author...if this is an intermediate conclusion, then what would be the author's conclusion???

This 2 aspects should make B the wrong choice...

superb explaination......ahem ahem ahem.......................:D
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GOD help those who help themselves....

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Re: BF CR top executives - Challenging one ! [#permalink]

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12 Sep 2010, 09:13
toshio86 wrote:
nusmavrik wrote:
toshio86 Bulls eye !! I agree with reasoning. Can you please analyze E and blot it out as well? thanks

OA is D

toshio86 wrote:
- the second boldfaced portion is definitely not an intermediate conclusion, it is te conclusion of the author...if this is an intermediate conclusion, then what would be the author's conclusion???

Ok...

E. The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second states a further conclusion supported by this intermediate conclusion.

The problem with E is that it states that the fact that the depositors are overoptimistic is due to the fact that bankers trust their own bank...which is not true (if the author were to conclude from the first boldfaced portion, he should state that depositors are right in being optimistic)! It is instead due to the fact that bankers could be trying to hide financial problems by buying their own bank's shares...

Hope it helps!

superb man .... what an example
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GOD help those who help themselves....

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Re: BF CR top executives - Challenging one ! [#permalink]

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12 Sep 2010, 18:25
D

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Re: BF CR top executives - Challenging one ! [#permalink]

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12 Sep 2010, 18:35
Clean d.

Neither one can be qualified as evidence. Both play a role of the conlcusion. First intermediate, second is the main.
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Re: BF CR top executives - Challenging one !   [#permalink] 12 Sep 2010, 18:35

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