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Several of a certain bank's top executives have recently been purchasi

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Several of a certain bank's top executives have recently been purchasi  [#permalink]

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New post Updated on: 29 Aug 2018, 23:25
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Difficulty:

  55% (hard)

Question Stats:

65% (01:20) correct 35% (01:51) wrong based on 111 sessions

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Several of a certain bank's top executives have recently been purchasing shares in their own bank. This activity has occasioned some surprise, since it is widely believed that the bank, carrying a large number of bad loans, is on the brink of collapse. Since the executives are well placed to know their bank's true condition, it might seem that their share purchases show that the danger of collapse is exaggerated. However, the available information about the bank's condition is from reliable and informed sources, and corporate executives do sometimes buy shares in their own company in a calculated attempt to calm worries about their company's condition. On balance, therefore, it is likely that the executives of the bank are following this example.

In the argument given, the two boldfaced portions play which of the following roles?


A. The first describes the circumstance the explanation of which is the issue that the argument addresses; the second states the main conclusion of the argument.

B. The first describes the circumstance the explanation of which is the issue the argument addresses; the second states a conclusion that is drawn in order to support the main conclusion of the argument.

C. The first provides evidence to defend the position that the argument seeks to establish against opposing positions; the second states the main conclusion of the argument.

D. The first provides evidence to support the position that the argument seeks to establish; the second states a conclusion that is drawn in order to support the argument’s main conclusion.

E. Each provides evidence to support the position that the argument seeks to establish.

Originally posted by nocilis on 01 Feb 2005, 20:14.
Last edited by Bunuel on 29 Aug 2018, 23:25, edited 3 times in total.
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Re: Several of a certain bank's top executives have recently been purchasi  [#permalink]

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New post 01 Feb 2005, 23:01
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Principle: something fundamental that we do not question. This would be somewhat stronger than a fact because it is not specific to a limited number of cases but instead, apply to a broader range of scenarios(and often deeper in meaning). For instance, you will not talk about the principle that crime is increasing in large cities. Instead, it is a fact which applies to large cities. However, you will talk about the principles of Physics or the fundamental principles of Human Rights. I believe principles convey a stronger connotation than mere facts.

Fact: something taken as true at face value (stats, historical events)

Evidence: what is used to support a conclusion (examples, stats, historical events). Although these may include facts, it is usually stronger than facts because they are direct elements needed for the conclusion to stand whereas facts are not necessary for the latter to stand

Pre-evidence: This is a bit of a stretch. It will not often be on the test but it seems very similar to "background" information as described below.

Background: Elements needed to put the evidence into context but which, as stand alone pieces of information, might not constitute what is called an evidence necessary to arrive at a conclusion. For instance, blood tests performed on one thousand persons may reveal that 35% of those persons were HIV infected. However, the background information could be that the test was performed in more underinformed regions of the world where AIDS knowledge is at a minimum. As you can see, the fact that the test was performed in more underinformed regions is not in and of itself an evidence because it does not allow us to come to a conclusion. Instead, the 35% stats, as a stand-alone piece of info, is what will lead us to the conclusion we want. However, the background info is also crucial and cannot be omitted; it is required background info.

Consideration: Something which was taken into account or given some thought before arriving to the conclusion.

Premise: This is usually a required statement to arrive at a conclusion. Evidence and facts want to prove something to you whereas premises are there to logically lead you to a conclusion. The best example of premises is the ones included in syllogisms. For instance, you can say that(premise1) when it rains, you go outside. Then, it rains(premise2). You have to be outside(conclusion).

Assumption: Unstated information which will link the argument to a logical conclusion. Without this, the argument falls apart.

Conclusion: Self-explanatory

Inference: Something that might not be explicitly stated or proved. For instance, you may say that 95% of GMAT test-takers have over 340. We can reasonably infer that Anthony will get more than 340 on his GMAT based on the fact given. I think the main difference b/w an inference and a conclusion is that the former might not be the final line of an argument. For instance, there could be facts/evidence given, an inference in b/w, and then the conclusion. An inference can be an intermediate step before the conclusion which will sum up the whole passage. Also, a conclusion seems to be stronger because it is based on stronger facts/evidence. As in my previous example, we can reasonably infer that Anthony got 340+ on his GMAT but we cannot conclude that he got 340+. See the nuance?

Feel free to disagree or add your thoughts to what I said. Some of these have very subtle differences though and in some cases, can even be interchanged.
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Re: Several of a certain bank's top executives have recently been purchasi  [#permalink]

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New post 13 Mar 2005, 19:54
A. The first describes the circumstance the explanation of which is the issue that the argument addresses; the second states the main conclusion of the argument.
- A should be the answer. It describes a circumstance (executive buying share) of which the issue that the argument addresses (issue is why executives buy shares from a flailing bank). The second states the main conclusion (executives do so to calm worries about their company’s condition.)

B. The first describes the circumstance the explanation of which is the issue the argument addresses; the second states a conclusion that is drawn in order to support the main conclusion of the argument.
- Second is the conclusion, and is in fact the main conclusion. B is out.

C. The first provides evidence to defend the position that the argument seeks to establish against opposing positions; the second states the main conclusion of the argument.
- Out. First doesn't provide evidence of any sort. The first sentence is a fact. (a reality)

D. The first provides evidence to support the position that the argument seeks to establish; the second states a conclusion that is drawn in order to support the argument’s main conclusion.
- Out.

E. Each provides evidence to support the position that the argument seeks to establish
- Out.

A it is.
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Re: Several of a certain bank's top executives have recently been purchasi  [#permalink]

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New post 10 Nov 2006, 14:11
A.

The main reason is that the first paragraph is an explanation. Here there is the evidence that support the conclusion that is stated in the second paragraph.

There is any other evidence, so the best answer must be A.
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Re: Several of a certain bank's top executives have recently been purchasi  [#permalink]

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New post 22 Oct 2016, 09:28
Hello from the GMAT Club VerbalBot!

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Re: Several of a certain bank's top executives have recently been purchasi &nbs [#permalink] 22 Oct 2016, 09:28
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