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# The Plexis Corporation, a leading computer chip

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Director
Joined: 23 Apr 2010
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30 Sep 2011, 06:37
1
This post was
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Difficulty:

5% (low)

Question Stats:

85% (01:00) correct 15% (01:02) wrong based on 216 sessions

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The Plexis Corporation, a leading computer chip
manufacturer, is currently developing a new chip,
which is faster and more efﬁcient than any computer
chip currently in use. The new chip will be released for
sale in twelve months. Plexis’ market research has
shown that initial sales of the new chip would be
maximized by starting to advertise it now, but the
company has decided to wait another six months
before doing so.
Which of the following, if true, provides the Plexis
Corporation with the best reason for postponing

(A) Some computer users are reluctant to purchase
new computer products when they are ﬁ rst
released.
(B) The cost of an advertising campaign capable of
maximizing initial sales of the new chip would be
no greater than campaigns previously
undertaken by Plexis.
(C) Advertising the new chip now will signiﬁ cantly
decrease sales of Plexis’ current line of
computer chips.
(D) Plexis’ major rivals in the computer chip
manufacturing business are developing a chip
with capabilities that are comparable to those of
Plexis’ new chip.
(E) Taking full advantage of the capacities of the
new chip will require substantial adjustments in
other segments of the computer industry

I got the question right. However, I would like to hear your thoughts on why (E) is wrong. My reasoning with (E) goes like this:

The Plexis corp. is waiting for major changes in other segments of the computer industry that are expected in 6 months. For example, the new chip might have a feature that is not supported by current motherboards. But new motherboards will be announced in 6 months. So the Plexis Corp. decided to wait for that announcement. Had they decided not to wait, it would be useless to market the chip (because, as I have said, the new feature is yet to be supported by motherboards), and the advertisement campaign would result in wasted money.

Any thoughts?

The OA is a slightly better choice.
[Reveal] Spoiler: OA
If you have any questions
New!
Intern
Status: Target 660 -> 720(Q49,V41) retaking in Feb 2012
Joined: 22 Aug 2011
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30 Sep 2011, 06:50
Here is my opinion -
E does not say when the substantial changes are going to take place. For all we know it might take 2 years.
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30 Sep 2011, 18:56
Manager
Joined: 03 Mar 2011
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01 Oct 2011, 08:17
1
KUDOS
We are said in the premises that sales of the new chip will be maximized by early advertisement. Even if (E) tells us that it will take time for the computer industry to accomodate, this still will not influence our sales since the initial premises is a FACT. So, no matter what there will be in the industry, if (E) is true, then it is still more profitable to begin advertisment right now, hence (E) is not the right answer.
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Director
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02 Oct 2011, 09:33
bagrettin, you are right. That's exactly the reason why E is incorrect. Thanks.
Intern
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02 Oct 2011, 10:09
E seems redundant here. So i have chosen C
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03 Sep 2012, 23:23
E strengthens the premise, not a weakener, because if it does start to advertise now, then the chip peripherals would have better opportunity to make the adjustments, which in turn will help the chip sell more, so IMO C is the correct choice and not E
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04 Sep 2012, 09:43
This is the most convincing reason for the company to wait another six months.
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Director
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17 Sep 2013, 00:55
(D) Plexis’ major rivals in the computer chip
manufacturing business are developing a chip
with capabilities that are comparable to those of
Plexis’ new chip.

This was tricky...
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30 Jun 2016, 13:54
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08 Jul 2016, 05:21
nonameee wrote:
The Plexis Corporation, a leading computer chip
manufacturer, is currently developing a new chip,
which is faster and more efﬁcient than any computer
chip currently in use. The new chip will be released for
sale in twelve months. Plexis’ market research has
shown that initial sales of the new chip would be
maximized by starting to advertise it now, but the
company has decided to wait another six months
before doing so.
Which of the following, if true, provides the Plexis
Corporation with the best reason for postponing

(A) Some computer users are reluctant to purchase
new computer products when they are ﬁ rst
released.
(B) The cost of an advertising campaign capable of
maximizing initial sales of the new chip would be
no greater than campaigns previously
undertaken by Plexis.
(C) Advertising the new chip now will signiﬁ cantly
decrease sales of Plexis’ current line of
computer chips.
(D) Plexis’ major rivals in the computer chip
manufacturing business are developing a chip
with capabilities that are comparable to those of
Plexis’ new chip.
(E) Taking full advantage of the capacities of the
new chip will require substantial adjustments in
other segments of the computer industry

I got the question right. However, I would like to hear your thoughts on why (E) is wrong. My reasoning with (E) goes like this:

The Plexis corp. is waiting for major changes in other segments of the computer industry that are expected in 6 months. For example, the new chip might have a feature that is not supported by current motherboards. But new motherboards will be announced in 6 months. So the Plexis Corp. decided to wait for that announcement. Had they decided not to wait, it would be useless to market the chip (because, as I have said, the new feature is yet to be supported by motherboards), and the advertisement campaign would result in wasted money.

Any thoughts?

The OA is a slightly better choice.

Hi,

E is saying : adjustment requires time. So this is actually weakening the argument that News should be released late. If E was true, they would want other accessories to be compatible when they release it. So they would give maximum time and release the news about the chip now rather than 6 months later to give other manufacturers ample time to adjust.
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The Plexis Corporation, a leading computer chip   [#permalink] 08 Jul 2016, 05:21
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