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# Commissioner: Budget forecasters project a revenue shortfall

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Senior Manager
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02 Aug 2010, 10:30
It is clearly stated that "Since there is no feasible way to increase the available funds".....So that eliminates E from the choice!

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09 Aug 2010, 22:21
big debate between B and E

E takes for granted that there is no way to increase available funds, which acording to me cannot be a flaw because there may be or may not be another way to increase available funds.
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07 Sep 2010, 00:19

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21 Oct 2010, 19:56
B.suffecient vs necessary condition

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05 Nov 2010, 14:42
B

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06 Nov 2010, 10:03
I will go with B

Forecasters forecasting is possibility ---> need adequate solution if problem comes but he is giivng required solution when problem actually exists .

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07 Nov 2010, 04:43
Solution should provide the way out in which, decrease in expenditure should outstrip the revenue shortfall .
But in his solution there is nothing which can convince us for that.Hence answer is B
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30 Mar 2011, 05:36
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jingy77 wrote:
E is the only one that makes sense to me. They are ruling out all factors that there can be anyway to increase funds. I have no idea though.

E attacks one of the premises that the argument is based on.

However, the question asks you to point out a flaw in the REASONING within the argument. In questions where you're asked to evaluate the reasoning of an argument, the validity of the premise is not relevant.

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30 Mar 2011, 11:31
i ll go with B.

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30 Mar 2011, 22:25
terp26 wrote:
im joining th B gang

The problem or flaw with the argument is that he is saying

We will be able to solve the problem we face, therefore, only if we adopt this plan.

So he is ruling out every other option. Why though? What in the argument states that another plan couldn't work either? Why is his plan the only one to solve the problem?
What if there were other ways to reduce expenditures in another plan?

Therefore in B, he is confusing what could be an adequate solution to a required solution (ONLY is key here)

Good explanation. I have gone for E, but now I think B is the correct one.

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12 May 2011, 08:42
Was confused between B and E. Read the explanations. B makes sense.
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13 May 2011, 00:19
Reasoning is perfect.
Conclusion is flawed. Hence look for the option which mentions about the flaw in conclusion.

B perfectly fits and mentions this flaw.
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13 May 2011, 03:19
B in 1:08 min , this is as simple as it gets. i dont think gmat will throw questions which are this easy.
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13 May 2011, 03:45
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prasannar wrote:
Commissioner: Budget forecasters project a revenue shortfall of a billion dollars in the coming fiscal year. Since there is no feasible way to increase the available funds, our only choice is to decrease expenditures. The plan before you outlines feasible cuts that would yield savings of a billion dollars over the coming fiscal year. We will be able to solve the problem we face, therefore, only if we adopt this plan.

This reasoning in the commissioner's argument is flawed because this argument

(A) relies on information that is far from certain
(B) confuses being an adequate solution with being a required solution
(C) inappropriately relies on the opinions of experts
(D) inappropriately employs language that is vague
(E) takes for granted that there is no way to increase available funds

Since there is no feasible way to increase the available funds,

SO it is stated that there is no feasible way to increase available funds, choice E is not right. We cannot select what is already stated, and so not a flaw.

our only choice is to decrease expenditures. The plan before you outlines feasible cuts that would yield savings of a billion dollars

So the only way is to decrease expenditures. There can be various plans to decrease expenditure and one of them (adequate plan) was presented by him.

We will be able to solve the problem we face, therefore, only if we adopt this plan.

Here is the problem, flaw is in this sentence. This plan is not the only plan, there can be many other plans that can lead to a saving of billion dollar. SO B is correct.
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Re: Commissioner: Budget forecasters project a revenue shortfall [#permalink]

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04 Apr 2012, 15:36
I thought it was A because the Q ask's how is the argument flawed, and well A could be a possible solution because the commissioner is basing his solution on information that is forecasted that is not necessarily 100% true. I mean I guess i could see B being the answer sorta....... I dunno, anytime I come here to the forums and read the solution I sorta understand it but the material doesn't really sink in unless its SC or Quant.

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Re: Commissioner: Budget forecasters project a revenue shortfall [#permalink]

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04 Apr 2012, 21:39
IMO B......

I couldn't rule out be other all options can be proved to be wrong

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Re: Commissioner: Budget forecasters project a revenue shortfall [#permalink]

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04 Apr 2013, 11:40
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I have to say this question's structure is really good and is NOT easy as some one says. I see many debates between B and E. I'm not a pro-CR analyst, but I picked the correct answer B by applying exactly CR-bible chapter 10 - Method of Reasoning question.

A. Analysis:

1. Type of question: Method of Reasoning - Flaw in the reasoning question.

2. What a correct answer looks like: "To identify the right answer choice, carefully consider the reasoning used in the stimulus. The correct answer will identify the error in the author's reasoning and then describe that error in general terms. Beware of answers that describe a portion of the stimulus but fail to identify the error in the reasoning" - Power Score CR Bible, page 214.

- Haft right, haft wrong answers.
- Answers that only describe a portion of stimulus, but not show a reasoning.

B. Apply:

Structure: Revenue shortfall; no way to increase funds; --> have to cut expenditures. --> can solve the problem - revenue shortfall.

Flaw: cut expenditure does not mean the company can solve the real problem - revenue shortfall. The key problem needed to be solved here is how to prevent revenue shortfall, not how to prevent the profit decline.

A, C and D are out right away because they are out of scope.
E is also wrong, it only repeats a portion of stimulus, but it doesn't show a flaw. (favorite trap of GMAC)
B is correct, it states that the argument confuses between an adequate solution (cut expenditure) and a required solution (Prevent revenue shortfall).

Hope it's clear now.

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Re: Commissioner: Budget forecasters project a revenue shortfall [#permalink]

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04 Apr 2013, 15:21
I solved it right, but used different reasoning than the one proposed here. I wasn't thinking that he is ruling out all the other ways by using the word "only". In my opinion, the B) isn't hinged on that fact, E) is somehow more.

Instead, I asked who said that the whole one billion has to be recovered? This is the difference which the B) tells us about - the difference between an adequate solution (regaining the whole one billion which would be just perfect) and the required solution (maybe it would be enough to recoup 50% of the shortfall next year? If YES, the whole argument falls apart).

Why not E)? I think that because E) reads "there is no way to increase...", and the Commissioner says that "there is no feasible way to increase...". Besides, the flaw appointed in B) trumps the one in E), as with E) true, the argument remains valid (the problem still exists), and with B) true, it does not.

Please correct me if I'm wrong.
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Re: Commissioner: Budget forecasters project a revenue shortfall [#permalink]

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06 Apr 2013, 17:32
HumptyDumpty wrote:
Instead, I asked who said that the whole one billion has to be recovered? This is the difference which the B) tells us about - the difference between an adequate solution (regaining the whole one billion which would be just perfect) and the required solution (maybe it would be enough to recoup 50% of the shortfall next year? If YES, the whole argument falls apart).

@HumptyDumpty
Interesting way of thinking. Your approach is Out Of The Box. I like it.
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Re: Commissioner: Budget forecasters project a revenue shortfall [#permalink]

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18 Apr 2013, 01:26
Commissioner: Budget forecasters project a revenue shortfall of a billion dollars in the coming fiscal year. Since there is no feasible way to increase the available funds, our only choice is to decrease expenditures. The plan before you outlines feasible cuts that would yield savings of a billion dollars over the coming fiscal year. We will be able to solve the problem we face, therefore, only if we adopt this plan.

This reasoning in the commissioner's argument is flawed because this argument

(A) relies on information that is far from certain. the information has some credibility
(B) confuses being an adequate solution with being a required solution. By reducing expenditure the revenue may plummet. it is not addressed
(C) inappropriately relies on the opinions of experts. it relies but often we rely on experts opinion, and the reasoning is sound to some extent
(D) inappropriately employs language that is vague. language is clear
(E) takes for granted that there is no way to increase available funds. looks alike a possible answer, but option B is more precise.

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Re: Commissioner: Budget forecasters project a revenue shortfall   [#permalink] 18 Apr 2013, 01:26

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