my pick is (E) too.
Company Spokesperson: This year, more than 70% of the guests who stayed with us over the past summer are planning to return to our resorts for a summer vacation. Therefore, I believe that we are well-positioned for another strong and profitable quarter.
Industry Analyst: This is not necessarily true. Nearly three quarters of the company’s profits come from the attendance of its theme parks located at its major resorts, and it is not certain how this segment will perform this summer.
Which of the following statements, if true, would support the criticism of the Industry Analyst?
A. The company’s management possesses more accurate financial information than is accessible to industry analysts.
B. The industry analyst represents an independent investment firm, which is not affiliated with the company.
C. The company’s revenues and profits have more than doubled over the past 3 years.
D. Because of the seasonality in the vacation travel and theme park attendance, summer is the most important season for the firm’s operations, accounting for over half of the firm's annual profits.
E. The vast majority of guests who visit the company’s resorts attend its theme parks only once, usually during their first week of stay.
During the practice test I ran into the question. I disagree with the answer choice. What is your thoughts?
Company Spokesperson: This year, more than 70% of the guests who stayed with us over the past summer are planning to return to our resorts for a summer vacation. Therefore, I believe that we are well-positioned for another strong and profitable quarter.
Industry Analyst: This is not necessarily true. Nearly three quarters of the company’s profits come from the attendance of its theme parks located at its major resorts, and it is not certain how this segment will perform this summer.
Which of the following statements, if true, would support the criticism of the Industry Analyst?
A. The company’s management possesses more accurate financial information than is accessible to industry analysts.
>>> this goes against Industry Analyst
B. The industry analyst represents an independent investment firm, which is not affiliated with the company.
>>> i was leaning towards this option but when compared with E, this option appears weak to me
C. The company’s revenues and profits have more than doubled over the past 3 years.
>>> makes no sense
D. Because of the seasonality in the vacation travel and theme park attendance, summer is the most important season for the firm’s operations, accounting for over half of the firm's annual profits.
>>> makes no sense
E. The vast majority of guests who visit the company’s resorts attend its theme parks only once, usually during their first week of stay.
>>> 75% of company's profits come from theme parks and since the guests who visit the resort attend the theme park only once during their first week of stay, that means the guests who are returning to the resort must have alread visited the theme park and will not go there again. Hence lowering the profits which is in line with Industry Analyst's criticism.