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Since it has become known that several of a bank's top executives have

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Re: Since it has become known that several of a bank's top executives have  [#permalink]

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New post 17 Apr 2018, 01:46
1
adkikani wrote:
GMATNinja VeritasPrepKarishma

I was able to correctly identify main conclusion of argument as :
Such reasoning might well be overoptimistic

The think that tricked me is to catch purpose of however
that followed main conclusion.

Also, in typical bold face question, do we not link bold face to
main conclusion than linking it to a conclusion (say conclusion of
depositors in this eg as in (A)


Look at the entire sentence:
"Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company..."

"however" is the connector for "such reasoning might well be overoptimistic" with the part of the argument before it.
You could just as well place it before like this: "However, such reasoning might well be overoptimistic,"
"However" shows contrast with the argument before it.

The connector "since" and what follows gives the reason for why such reasoning may be overoptimistic.

The role played by the sentence in bold depends on the argument. If the argument has a main conclusion and a sub conclusion, a sentence in bold could support either, be against either or be either.
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Re: Since it has become known that several of a bank's top executives have  [#permalink]

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New post 13 Aug 2018, 08:52
Could anyone please explain where am I making mistake in reasoning?

I eliminated choice A for following reason:

A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.


"several of a bank's top executives have been buying shares in their own bank" : This evidence is taken as a support of a conclusion.
"since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health": This part doesn't question the support : evidence. This is revealing a flaw in reasoning of depositors, or in other words it provides the reason to question the conclusion made by depositors. Hence, I eliminated choice A.

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Re: Since it has become known that several of a bank's top executives have  [#permalink]

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New post 13 Aug 2018, 18:28
1
Blackishmamba wrote:
Could anyone please explain where am I making mistake in reasoning?

I eliminated choice A for following reason:

A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.


"several of a bank's top executives have been buying shares in their own bank" : This evidence is taken as a support of a conclusion.
"since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health": This part doesn't question the support : evidence. This is revealing a flaw in reasoning of depositors, or in other words it provides the reason to question the conclusion made by depositors. Hence, I eliminated choice A.

Posted from my mobile device


let me also try to pitch in my thoughts on this.
Quote:
This part doesn't question the support : evidence

you are right here and in addition since it is an evidence/fact(it actually happened ) the author can't question it.

As rightly mentioned by you
Quote:
This is revealing a flaw in reasoning of depositors, or in other words it provides the reason to question the conclusion made by depositors.

The author is questioning the link between this evidence and the conclusion drawn by the depositors.

"that support" is the link between evidence and the conclusion made by the depositors.
"that support" is not the evidence itself

for example: person A was murdered by someone and person B's pistol was found at the scene of the crime.

Now based on this police concluded that the murder was done by person B.I(using the evidence to support the conclusion)

Now the defence attorney is questioning the support by saying that the person B's pistol was stolen few days ago, so he is questioning the link(support) between the evidence and the conclusion. He is not questioning the evidence.

Hope it is clear
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Re: Since it has become known that several of a bank's top executives have  [#permalink]

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New post 23 Jul 2019, 12:59
Hi,

If i can de clutter the argument

Investors are relieved
Why? how did they arrive at this situation
because CEO's of banks are buying stocks in their own bank,
and
they believe that "since top executives evidently have faith in the bank's financial soundnes"
So the 'rumors that bank is in bad health must be false" ( Intermediate Conclusion)
hence investors are relived

Such a reasoning is might be overoptimistic, ( THE MAIN CONCLUSION OF THE ARGUMENT)
because corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health. ( other aspect of CEO's move to overcome something )


Option A
The first describes evidence (Yes BF-1 describes a evidence) that has been taken as supporting a conclusion (Which supports a intermediate conclusion that rumors are false ) ; the second gives a reason for questioning that support. Second BF questions BF-1 where by it questions supports given for the conclusion arrived at by investors that rumors about banks financial health must be false.


Hope this helps
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Re: boldface question  [#permalink]

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Re: boldface question   [#permalink] 09 Sep 2019, 03:18

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