The Setup:Premises:Security companies charge MORE in Bankland than Jewel Point
Bankland businesses are less likely to be robbed
Conclusion: Security companies make GREATER PROFIT in BanklandThe Gap:The argument confuses REVENUE with PROFIT.Profit = Revenue − CostsWe're told they CHARGE more in Bankland (revenue), but what about COSTS?
A. the level of financial frauds in Bankland with the level of financial frauds in Jewel PointWhy it fails: The argument is about robbery and security, not fraud. Wrong crime, wrong conversation.
B. the cost of providing private security for businesses in Bankland and Jewel Point with that in other citiesWhy it fails: We need Bankland vs Jewel Point, not comparisons to random other cities. Who cares what it costs elsewhere?
C. the rates homeowners pay for private security in Bankland versus the rates homeowners pay for the same in Jewel PointWhy it fails: The argument is about
businesses, not homeowners. Wrong group.
D. the efficiency of Bankland's police department with the condition of Jewel Point'sWhy it fails: This might explain robbery rates, but tells us nothing about security company
costs or profits.
E. the cost of maintaining security systems for a business in Bankland versus the cost of doing so in Jewel PointWhy it works: This fills the exact gap in the argument.
If costs are HIGHER in Bankland:- Bankland: Charge $100, Cost $90 → Profit = $10
- Jewel Point: Charge $70, Cost $40 → Profit = $30
- Result: Conclusion is WRONG (Jewel Point profits more!)
If costs are SIMILAR:- Bankland: Charge $100, Cost $50 → Profit = $50
- Jewel Point: Charge $70, Cost $50 → Profit = $20
- Result: Conclusion is RIGHT (Bankland profits more)
The Takeaway:In Evaluate questions, find the answer that addresses what's
missing from the argument.
Here, the argument jumps from "charges more" to "profits more" without considering costs. (E) directly tests whether this jump is valid.
Answer: E