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the question looks bazaar indeed, but it turns out that the right answer is all about that the argument fails to show the causal relation for the chemical division.
The pharmaceutical division is just unrelated fact.
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Corporate Officer: Last year was an unusually poor one for our chemical division, which has traditionally contributed about 60 percent of the corporation's profits. It is therefore encouraging that there is the following evidence that the pharmaceutical division is growing stronger: it contributed 45 percent of the corporation's profits, up from 20 percent the previous year.

On the basis of the facts stated, which of the following is the best critique of the evidence presented above?

Boil it down - The pharmaceutical division is growing stronger since its % share of corporation's profits has increased from 20 to 45 %.
- It experienced ABSOLUTE growth ?
What if - the total profits of the entire corporation are down. The entire pie might be smaller and therefore the Pharma profits might stay the same and yet be a larger percentage of a smaller pie.

(A) The increase in the pharmaceutical division's contribution to corporation profits could have resulted largely from the introduction of single, important new product. - Irrelevant - it does not dispute the claim that pharmaceutical division is growing stronger

(B) In multidivisional corporations that have pharmaceutical divisions, over half of the corporation's profits usually come from the pharmaceuticals. - Irrelevant - we are concerned about this company only.

(C) The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved. - Correct

(D) The information cited does not make it possible to determine whether the 20 percent share of profits cited was itself an improvement over the year before. - Incorrect - we are only concerned in comparing the last 2 years

(E) The information cited does not make it possible to compare the performance of the chemical and pharmaceutical divisions in of the percent of total profits attributable to each. - may be true, but its not the issue

Answer C
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(C) The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved.

pharmaceutical division could have done poorly also

previous year profit : chemical 60 million ,phar 20 million
this year : chemical 20 million ,phar 15 million

percentage is higher /// the actual number is lower
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I did not understand the main argument of the question. Also , how to decide between C and D
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How does option D not weaken the conclusion? The 20 percent share of profits cited was itself an improvement over the year before ONLY if the profits increased or stayed constant. What if the profits decreased then the increase in percentage (from 20 to 45) will not be sufficient in and of itself since actual numerical profits from the chemical division could have fallen?
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How does option D not weaken the conclusion? The 20 percent share of profits cited was itself an improvement over the year before ONLY if the profits increased or stayed constant. What if the profits decreased then the increase in percentage (from 20 to 45) will not be sufficient in and of itself since actual numerical profits from the chemical division could have fallen?

D doesn't weaken the conclusion because it's irrelevant.

We're told the pharmaceutical division contributed 45% of the corporation's profits, up from 20% of the previous year.

So D is saying that it's not possible to determine whether that 20% was itself an improvement over the year before. So now we're talking about two years back.

We don't care about what happened two years ago.

It's interesting to note that the percentages have changed since the original question was posted (see mikemcgarry's response)
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Hi Experts,

Please can you advise what Option E means?

As per my understanding the option states that the passage hasn't provided us with enough information to compare the profits of both the divisions in terms of percentages. This is incorrect as we are given the percentage share of both the divisions in the total profits of the corporation and thus we are given enough information to compare them.

Thanks
Kitty
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Corporate Officer: Last year was an unusually poor one for our chemical division, which has traditionally contributed about 60 percent of the corporation's profits. It is therefore encouraging that there is the following evidence that the pharmaceutical division is growing stronger: it contributed 45 percent of the corporation's profits, up from 20 percent the previous year.

On the basis of the facts stated, which of the following is the best critique of the evidence presented above?


(A) The increase in the pharmaceutical division's contribution to corporation profits could have resulted largely from the introduction of single, important new product. - This is simply a reason why pharmaceutical division's contribution increased. Not a critique of the evidence

(B) In multidivisional corporations that have pharmaceutical divisions, over half of the corporation's profits usually come from the pharmaceuticals. - General statement, not a critique of the evidence

(C) The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved. - CORRECT

(D) The information cited does not make it possible to determine whether the 20 percent share of profits cited was itself an improvement over the year before. - Non improvement over the year before doesn't critique the argument given

(E) The information cited does not make it possible to compare the performance of the chemical and pharmaceutical divisions in of the percent of total profits attributable to each. - Information in the argument is comparing the performance
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KittyDoodles
Hi Experts,

Please can you advise what Option E means?

As per my understanding the option states that the passage hasn't provided us with enough information to compare the profits of both the divisions in terms of percentages. This is incorrect as we are given the percentage share of both the divisions in the total profits of the corporation and thus we are given enough information to compare them.

Thanks
Kitty


Two points on E.

1) We are discussing on EVIDENCE, which just talks of Chemical division. Thus, comparison of chemical and pharmaceutical division does not help our analysis of evidence produced.
2) Are we given profits % to compare profits of these two divisions. The answer is NO, and so E is valid statement, although unrelated to our search for a correct answer.
Pharmaceutical: 60% is the traditional profit but last year was POOR one for pharmaceutical. So, we know traditional, but surely last year was poor and nothing about
this year
Chemical: Last year 20% and this year 45%. Nothing prior to last year.
So, no COMMON period to compare the %.
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How does option D not weaken the conclusion? The 20 percent share of profits cited was itself an improvement over the year before ONLY if the profits increased or stayed constant. What if the profits decreased then the increase in percentage (from 20 to 45) will not be sufficient in and of itself since actual numerical profits from the chemical division could have fallen?

D doesn't weaken the conclusion because it's irrelevant.

We're told the pharmaceutical division contributed 45% of the corporation's profits, up from 20% of the previous year.

So D is saying that it's not possible to determine whether that 20% was itself an improvement over the year before. So now we're talking about two years back.

We don't care about what happened two years ago.

It's interesting to note that the percentages have changed since the original question was posted (see mikemcgarry's response)

C is logically wrong. It says - "The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved".

This "could have increased" is not possible as the argument tells the Pharma this year contributed 45% of the corporation's profit. This means that 55% left for any other division to contribute at MAX.
The argument says that usually chemical division contributed 60% and the performance last year was unusually poor meaning it will likely be lower than 60%, at most it can be 55%, which still makes it impossible for C to hold.

I think the OA needs to be D. I Picked D thinking that the two years data was not sufficient to say it is growing stronger just based on a single year performance, what it the year is an outlier itself? Based on the one year data we cannot say a trend ..... can we?

GMATNinja AndrewN egmat please advise ... this question and picking answer choice b/w C and D driving me crazy ...

Also, how to identify "Out of Scope" or "Irrelevant" answer choices? Is there a process?

Thanks.


The OA has to be D.
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How does option D not weaken the conclusion? The 20 percent share of profits cited was itself an improvement over the year before ONLY if the profits increased or stayed constant. What if the profits decreased then the increase in percentage (from 20 to 45) will not be sufficient in and of itself since actual numerical profits from the chemical division could have fallen?

D doesn't weaken the conclusion because it's irrelevant.

We're told the pharmaceutical division contributed 45% of the corporation's profits, up from 20% of the previous year.

So D is saying that it's not possible to determine whether that 20% was itself an improvement over the year before. So now we're talking about two years back.

We don't care about what happened two years ago.

It's interesting to note that the percentages have changed since the original question was posted (see mikemcgarry's response)

C is logically wrong. It says - "The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved".

This "could have increased" is not possible as the argument tells the Pharma this year contributed 45% of the corporation's profit. This means that 55% left for any other division to contribute at MAX.

The argument says that usually chemical division contributed 60% and the performance last year was unusually poor meaning it will likely be lower than 60%, at most it can be 55%, which still makes it impossible for C to hold.

I think the OA needs to be D. I Picked D thinking that the two years data was not sufficient to say it is growing stronger just based on a single year performance, what it the year is an outlier itself? Based on the one year data we cannot say a trend ..... can we?

GMATNinja AndrewN egmat please advise ... this question and picking answer choice b/w C and D driving me crazy ...

Also, how to identify "Out of Scope" or "Irrelevant" answer choices? Is there a process?

Thanks.

The OA has to be D.
The problem is that we don't know anything about the company's other divisions or about the total profits year to year. If total profits dropped significantly, it's certainly possible that the percentage from the pharma division would go up even if profits from that division were unchanged.

Here, have an example.

Year 1 (total profit = $45 million):

  • pharmaceutical division: 20% ($9 million)
  • chemical division: 60% ($27 million)
  • other divisions: 20% ($9 million)

Year 2 (total profit = $20 million):

  • pharmaceutical division: 45% ($9 million - unchanged from last year)
  • chemical division: 20% ($4 million - an unusually poor year for that division)
  • other divisions: 35% ($7 million)

As for (D), remember that the chemical division traditionally contributes 60%. That means that, at most, the pharma division typically contributes 40%. In that case, 45% would still represent an increase.

Sure, the 20% could have been an outlier. But given that 45% is (1) a significant increase from last year and (2) higher than the traditional/typical percentage, how that 20% compares to the year before doesn't really affect the author's argument.

I hope that helps!
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C is the clear winner because drop in chemical division's profit could have naturally increased the share of profit of other divisions(in this case Pharmaceutical) even if there is no change in profits of pharma in $ terms. It is a clear case of % contribution doesnt mean improvement in profits.
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First, a kind request if the moderator can correct option E - the "terms" is missing, and it causes some confusion in understanding the sentence. Thanks.
Understanding the argument -
It says that last year, the chemical division's (CD) performance was bad. Earlier, it used to contribute to 60% of the profits. (no further information on CD).
Then it says that the pharmaceutical division's (PD's) earlier contribution was 20%, and now it's 45%, so it is growing stronger.

The argument missed the possibility that the percentages could have changed because the overall pie has reduced. E.g.,
The previous year (before the LY), the profits were as follows: units
CD - 60 units
PD - 20 units
Other Divisions (OD) - 20 units
In overall 100, PD's contribution is 20%

LY
CD - 4 units
PD - 20 units
Other Divisions (OD) - 20 units
In overall 44, PD's contribution is 45%

Did the PD grow stronger? No. It performed the same. But just because the overall profit declined, the PD percentage looks better. And that's what option C highlights.

Option Elimination -

(A) The increase in the pharmaceutical division's contribution to corporation profits could have resulted largely from the introduction of single, important new product. We aren't even going there yet. First, we ask the basic question, "Did the PD grow"? So, this option is out of scope.

(B) In multidivisional corporations that have pharmaceutical divisions, over half of the corporation's profits usually come from the pharmaceuticals. Doesn't matter what happens in other multinational corporations; it is out of scope.

(C) The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved. - Yes, that's what we highlighted.

(D) The information cited does not make it possible to determine whether the 20 percent share of profits cited was itself an improvement over the year before. The improvement over the year before is out of scope.

(E) The information cited does not make it possible to compare the performance of the chemical and pharmaceutical divisions in terms of the percent of total profits attributable to each. - The issue with this option is that while it tells the truth, it is still possible that the PD grew.

Let me share that with an example -

LY (Scenario 1) - PD doesn't grow
CD - 4 units - 4%
PD - 20 units - 45%
Other Divisions (OD) - 20 units
In overall 44, PD's contribution is 45

LY (Scenario 2) - PD grows
CD - 8 units - 4%
PD - 90 units - 45%
Other Divisions (OD) - 102 units
Overall, PD's contribution is 45

So, saying "does not make it possible" is something we can't say with 100% confidence. The data may or may not have helped. On the contrary, option C directly finds a flaw, citing Scenario 1.
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Corporate Officer: Last year was an unusually poor one for our chemical division, which has traditionally contributed about 60 percent of the corporation's profits. It is therefore encouraging that there is the following evidence that the pharmaceutical division is growing stronger: it contributed 45 percent of the corporation's profits, up from 20 percent the previous year.

On the basis of the facts stated, which of the following is the best critique of the evidence presented above?


(A) The increase in the pharmaceutical division's contribution to corporation profits could have resulted largely from the introduction of single, important new product.

(B) In multidivisional corporations that have pharmaceutical divisions, over half of the corporation's profits usually come from the pharmaceuticals.

(C) The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved.

(D) The information cited does not make it possible to determine whether the 20 percent share of profits cited was itself an improvement over the year before.

(E) The information cited does not make it possible to compare the performance of the chemical and pharmaceutical divisions in of the percent of total profits attributable to each.
­

Premises:

Last year was an unusually poor one for our chemical division, which has traditionally contributed about 60 percent of the corporation's profits.

Pharmaceutical division contributed 45 percent of the corporation's profits, up from 20 percent the previous year. 


Conclusion:

It is encouraging that the pharmaceutical division is growing stronger.

The officer shares that the chemical division fared badly last year, contributing less than usual to the profits but the pharmaceutical division contributed much more than it usually does. So, it is encouraging that the pharmaceutical division is growing stronger. We need to critique the evidence presented above. It is possible that the pie (overall profit figure) has reduced and that is why the share of the pharmaceutical division has increased even though the pharmaceutical division hasn’t really grown stronger. Since we know that chemical division, which normally provides about 60% of the profits performed poorly, it is quite likely that the overall profits have reduced. Hence even if the pharmaceutical division has performed the same as before, it could be responsible for a higher contribution to the profits. Let’s look at the options.

A. The increase in the pharmaceutical division's contribution to corporation profits could have resulted largely from the introduction of single, important new product. 


It does mean that the pharmaceutical division has grown stronger - whether one product was responsible or many is irrelevant.



B. In multidivisional corporations that have pharmaceutical divisions, over half of the corporation's profits usually come from the pharmaceuticals. 



Irrelevant to our argument. How much the pharmaceutical divisions of other corporations contribute is irrelevant. We need to see whether our pharmaceutical division is improving compared with its performance in previous years. 



C. The percentage of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance had not improved. 



As we discussed above, if the overall profits reduced, the share of pharmaceutical division could have increased without an actual increase in its performance. Let’s take some numbers to understand how this is possible. For example, say last year total profits were $100 of which $20 came from pharmaceutical division (and $60 from chemical division). This year’s total profits are $45 (since chemical division performed poorly, it showed a profit of $5 only) out of which again $20 came from pharmaceutical division. The performance of the pharmaceutical division did not change but its percentage of the corporation's profits did increase from 20% to almost 45%. This is a critique of the evidence presented.


Correct.

D. The information cited does not make it possible to determine whether the 20 percent share of profits cited was itself an improvement over the year before. 



What happened last year compared with last to last year is irrelevant. 



E. The information cited does not make it possible to compare the performance of the chemical and pharmaceutical divisions in of the percent of total profits attributable to each.

Irrelevant to our argument. We don’t need to compare the performance of the two divisions. We need to compare their performances with their own performances of last year.

Answer (C)

Discussion on Weaken Questions: https://youtu.be/EhZ8FKkfy0k
 
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