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# President of the Smalltown Chamber of Commerce: In the past decade, th

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Senior Manager
Joined: 08 Jan 2018
Posts: 262
Location: United States (ID)
GPA: 3.33
WE: Accounting (Accounting)
President of the Smalltown Chamber of Commerce: In the past decade, th [#permalink]

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22 Jan 2018, 09:40
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45% (medium)

Question Stats:

75% (02:15) correct 25% (01:54) wrong based on 164 sessions

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President of the Smalltown Chamber of Commerce: In the past decade, the businesses in Smalltown have reported average profits of 15% above inflation. The mayor of Smalltown has explained this by citing decreased crime and a growing population, but he is incorrect. In reality, this increase in profitability is not due to these factors, but rather to the sharing of business acumen and market research that occurs at the monthly Chamber of Commerce meetings.

Which of the following, if true, best supports the President of the Smalltown Chamber of Commerce's attribution of the increased profits to her organization's meetings?
A Crime has decreased throughout the state, and the businesses in other towns with similar populations have seen similar profits in the past ten years.
B The growth of Smalltown's population has primarily been due to a higher birth rate, which has traditionally been associated with a drop in crime.
C Members of Smalltown's Chamber of Commerce cite the friendliness and helpfulness of the group as one of their main reasons for attending meetings.
D The effects of taxes on local businesses may not be immediately apparent in all cases, particularly when populations are fluctuating.
E Businesses in Smalltown whose members did not attend these monthly meetings regularly saw their profits increase only 2% above inflation.
Senior Manager
Joined: 17 Oct 2016
Posts: 326
Location: India
Concentration: Operations, Strategy
GPA: 3.73
WE: Design (Real Estate)
Re: President of the Smalltown Chamber of Commerce: In the past decade, th [#permalink]

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22 Jan 2018, 10:21
Has to be E.

A- irrelevant to the meetings
B- same as A
C- this is close. But being friendly doesn’t make profits.
D- this talks something irrelevant
E- this talks the negative part of not attending the meeting and hence ensures the use of attending the meetings.

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Intern
Joined: 09 Dec 2017
Posts: 7
Re: President of the Smalltown Chamber of Commerce: In the past decade, th [#permalink]

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22 Jan 2018, 11:36
IMO E

A: Totally irrelevant
B: Irrelevant
C: Talks about the friendliness and helpfulness of the group as a reason to attend the meetings. But it does not have any effect on profits.
D: Out of scope
E: It says that the businesses, who didn't attend the meetings, did not see much rise in profit whereas the businesses, who attended the meetings, saw 15% increase in profits.
Therefore, we can attribute the increase in profits to the organization's meetings.
Director
Joined: 23 Sep 2015
Posts: 538
Re: President of the Smalltown Chamber of Commerce: In the past decade, th [#permalink]

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02 Jun 2018, 02:09

Official Explanation Magoosh:

Answer = (E). The President’s argument is that the Chamber of Commerce meetings are responsible for increased business. Her evidence is that business in the area has increased by 15%. The right assumption, which this argument asks us to strengthen, will create a strong link between attending these meetings and seeing an increase in business. We don’t have that among our answers, but we do have the contrapositive in answer choice (E): those who did NOT attend these meetings did NOT earn such high profits. The fact that there was such a significant difference in the increase in profits between businesses that did vs. didn't attend this meeting shows the value of attending the meeting.

The President is arguing that the decrease in crime (A) is not responsible for the increased profits. If (A) were true, this would actually weaken, not strengthen, her argument, as it provides another possible cause for the increased profits.

Meanwhile, (B) links crime and birth patterns, but completely leaves out business, profits, and the Chamber of Commerce. Because it does this, we can eliminate it as irrelevant to the main argument in the passage.

It’s nice that members like the meetings (C) of the Chamber of Commerce, but whether they like them or not is beside the point; the President isn’t claiming that people love these meetings, simply that they are responsible for the rise in profits. (C) is out of scope for this question.

Finally, taxes (D) are also out of scope. Even if they were in the scope of the argument, we could dismiss this answer choice, as we can assume that the 15% increase in profits is most likely the after-tax figure or, if it isn’t, that it was calculated with the same method as previously.
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Re: President of the Smalltown Chamber of Commerce: In the past decade, th   [#permalink] 02 Jun 2018, 02:09
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