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Clearly, while comparing two companies, higher sales do not necessaril

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Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post Updated on: 08 May 2018, 23:22
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Clearly, while comparing two companies, higher sales do not necessarily indicate higher profits. A recently published article in a prominent business magazine shows that the top ten names on the list of companies with the highest sales and the corresponding names on the list of companies with the highest profits are mutually exclusive.

Which of the following can properly be inferred based on the above statements?

A) While comparing two companies, the company with higher sales is more likely to have lower profits.
B) It is highly likely that two companies with different sales have the same profit margin.
C) Sales and profits have no correlation.
D) While comparing two companies, lower sales do not by themselves indicate lower profits.
E) In order to compete in the market, it is better for a company to have higher profits than higher sales.

Originally posted by sahilsnpt on 07 May 2018, 20:38.
Last edited by Bunuel on 08 May 2018, 23:22, edited 2 times in total.
Edited the question.
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Re: Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post 07 May 2018, 21:49
My answer was D because i eliminated other options and this seemed to be most likely valid.

A) While comparing two companies, the company with higher sales is more likely to have lower profits. : not always true.no relation mentioned as such
B) It is highly likely that two companies with different sales have the same profit margin. highly likely makes it not always true.
C) Sales and profits have no correlation. this is a strict inference will might not be true
D) While comparing two companies, lower sales do not by themselves indicate lower profits. this is given in the stmt.
E) In order to compete in the market, it is better for a company to have higher profits than higher sales. no conclusion or such inference ca be derived
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Re: Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post 08 May 2018, 00:45
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The answer is D.

This question tests our logical skills, in differentiating what can and can't be inferred. We are told that, in one specific case, profits and sales are not correlated. From this we can learn that they are not, in general, necessarily correlated or causally related to each other, and that's about it. This is what D states: sales do not by themselves indicate profits, as we see in the case of these ten companies.

Reviewing the answers:
A) While comparing two companies, the company with higher sales is more likely to have lower profits. Not neccesarily - all we know is that the very highest selling companies aren't always the very highest profiting
B) It is highly likely that two companies with different sales have the same profit margin. nothing to indicate this
C) Sales and profits have no correlation. WAY too strong a conclusion: all we know is that they don't have a PERFECT correlation, meaning they aren't always correlated. They could still have a very strong corellation (maybe all other companies not in the top 10 are always correlated?
D) While comparing two companies, lower sales do not by themselves indicate lower profits. This is definitely true: for the companies mentioned, we know their lower than tope 10 sales don't indicate lower than top 10 profits
E) In order to compete in the market, it is better for a company to have higher profits than higher sales. nothing in the argument tells us this
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Re: Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post 08 May 2018, 18:43
Keep in mind - two given lists are mutually exclusive. on this basis i have selected C and D.

C) Sales and profits have no correlation. ---- rejected this cause 1. too extreme language. 2. ofcourse it is not true.
D) While comparing two companies, lower sales do not by themselves indicate lower profits.
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Re: Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post 08 May 2018, 19:10
I’ll go with d
A) lower is comparative. A company with higher sales may have a lower profit than one company with lower sales but it might be higher than other company with lower sales .
B) if true then lowest sales will have lowest profit
C) d looks better
D)
E) irrelevant


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Re: Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post 10 May 2018, 09:55
+1 for D.
It can reasonable inferred from the Argument.Remaining option may or may not be true.

+1 if this helps!

sahilsnpt wrote:
Clearly, while comparing two companies, higher sales do not necessarily indicate higher profits. A recently published article in a prominent business magazine shows that the top ten names on the list of companies with the highest sales and the corresponding names on the list of companies with the highest profits are mutually exclusive.

Which of the following can properly be inferred based on the above statements?

A) While comparing two companies, the company with higher sales is more likely to have lower profits.
B) It is highly likely that two companies with different sales have the same profit margin.
C) Sales and profits have no correlation.
D) While comparing two companies, lower sales do not by themselves indicate lower profits.
E) In order to compete in the market, it is better for a company to have higher profits than higher sales.

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Re: Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post 12 May 2018, 05:19
sahilsnpt wrote:
Clearly, while comparing two companies, higher sales do not necessarily indicate higher profits. A recently published article in a prominent business magazine shows that the top ten names on the list of companies with the highest sales and the corresponding names on the list of companies with the highest profits are mutually exclusive.


Which of the following can properly be inferred based on the above statements?


A) While comparing two companies, the company with higher sales is more likely to have lower profits.

B) It is highly likely that two companies with different sales have the same profit margin.

C) Sales and profits have no correlation.

D) While comparing two companies, lower sales do not by themselves indicate lower profits.


E) In order to compete in the market, it is better for a company to have higher profits than higher sales.

D is the best.
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Re: Clearly, while comparing two companies, higher sales do not necessaril  [#permalink]

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New post 08 Jul 2018, 07:45
aragonn wrote:
Keep in mind - two given lists are mutually exclusive. on this basis i have selected C and D.

C) Sales and profits have no correlation. ---- rejected this cause 1. too extreme language. 2. ofcourse it is not true.
D) While comparing two companies, lower sales do not by themselves indicate lower profits.


passage quotes the example of only ten companies in two lists (In all twenty companies). So, we cannot use this limited data set to make a generalized statement such as option C "Sales and profits have no correlation." We cannot infer such relation for the other companies in the world.
Re: Clearly, while comparing two companies, higher sales do not necessaril &nbs [#permalink] 08 Jul 2018, 07:45
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