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The price of the SuperPixel high definition television, by Lux

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The price of the SuperPixel high definition television, by Lux  [#permalink]

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New post 01 Sep 2015, 08:38
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A
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Question Stats:

83% (01:42) correct 17% (02:21) wrong based on 164 sessions

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The price of the SuperPixel high definition television, by Lux Electronics, has typically been out of the range of most consumers, a few of whom nonetheless save up for the television. This past July, the SuperPixel reduced its price by 40%, and sales during that month nearly tripled. TechWare, a popular electronics magazine, claims that the SuperPixel television should continue to see sales grow at this rate till the end of August.

Which of the following suggests that TechWare’s forecast is misguided?

A) Most of the customers who had been saving up for the SuperPixel bought the television in July.
B) Sales of the MegaPixel high definition television, an even more expensive model than the SuperPixel, saw declining sales in the month of July.
C) Electronics sales tend to peak in August and December.
D) The SuperPixel tends to be an unreliable television and Lux Electronics makes a considerable profit from repairs.
E) The SuperPixel is the only model for which Lux Electronics plans a price reduction.

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Re: The price of the SuperPixel high definition television, by Lux  [#permalink]

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New post 01 Sep 2015, 08:53
Harley1980 wrote:
The price of the SuperPixel high definition television, by Lux Electronics, has typically been out of the range of most consumers, a few of whom nonetheless save up for the television. This past July, the SuperPixel reduced its price by 40%, and sales during that month nearly tripled. TechWare, a popular electronics magazine, claims that the SuperPixel television should continue to see sales grow at this rate till the end of August.

Which of the following suggests that TechWare’s forecast is misguided?

A) Most of the customers who had been saving up for the SuperPixel bought the television in July.
B) Sales of the MegaPixel high definition television, an even more expensive model than the SuperPixel, saw declining sales in the month of July.
C) Electronics sales tend to peak in August and December.
D) The SuperPixel tends to be an unreliable television and Lux Electronics makes a considerable profit from repairs.
E) The SuperPixel is the only model for which Lux Electronics plans a price reduction.


Hi Harley1980, i got this one wrong. i marked E. Can you explain how A is correct?
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Re: The price of the SuperPixel high definition television, by Lux  [#permalink]

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New post 01 Sep 2015, 10:08
grr8pe wrote:
Harley1980 wrote:
The price of the SuperPixel high definition television, by Lux Electronics, has typically been out of the range of most consumers, a few of whom nonetheless save up for the television. This past July, the SuperPixel reduced its price by 40%, and sales during that month nearly tripled. TechWare, a popular electronics magazine, claims that the SuperPixel television should continue to see sales grow at this rate till the end of August.

Which of the following suggests that TechWare’s forecast is misguided?

A) Most of the customers who had been saving up for the SuperPixel bought the television in July.
B) Sales of the MegaPixel high definition television, an even more expensive model than the SuperPixel, saw declining sales in the month of July.
C) Electronics sales tend to peak in August and December.
D) The SuperPixel tends to be an unreliable television and Lux Electronics makes a considerable profit from repairs.
E) The SuperPixel is the only model for which Lux Electronics plans a price reduction.


Hi Harley1980, i got this one wrong. i marked E. Can you explain how A is correct?


The price of the SuperPixel high definition television, by Lux Electronics,..... <------ Suggests SuperPixel is a brand of Lux Electronics...

Suppose Lux Electronics plans a price reduction only for SuperPixel high definition television , then there are 2 possible outcomes -

1. Increase in sales of SuperPixel high definition television
2. Have no effect

we are asked to weaken the conclusion " that the SuperPixel television should continue to see sales grow at this rate till the end of August. "

The said strategy could either result in -

Maintaining sales level at same level / Have no effect - Either way it is not weakening the conclusion...

However (A) states Most of the customers have already purchased the TV by july so , by the end of Augusut , we might not find adequate custmers willing to purchase the TV even at reduced price...

Hope that helps..
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Re: The price of the SuperPixel high definition television, by Lux  [#permalink]

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New post 01 Sep 2015, 10:23
A seems to be flawed and E ambiguous :(

Below is my analysis-

Given: Many people used to save for the TV as it was outta range.
In July, Prices slashed by 40%, sales tripled.

Claim: the SuperPixel television should continue to see sales grow at this rate till the end of August.

We need to weaken this claim. So we can prove that, EITHER
i) The sales will continue to grow post August, OR
ii) The sales will perish before Aug end.

Option A
Now, for A to be correct, i think it establishes 'ii' above. below is the explanation:
All those who saved for the TV have bought it in July itself, so there will not be many left to buy in Aug and therefore, the increased sales will die out before Aug end.

I felt that A is flawed because it assumed the following: (Harley1980 please comment)
The 40% discount will not make the TV affordable for those who wanted to buy but never saved for the same?

Option E
Does it say that SuperPixel is getting one more price reduction?? (i know im getting it wrong but if it is true then this would be the answer)

ohh Im completely bewildered :'(
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Re: The price of the SuperPixel high definition television, by Lux  [#permalink]

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New post 01 Sep 2015, 23:51
The price of the SuperPixel high definition television, by Lux Electronics, has typically been out of the range of most consumers, a few of whom nonetheless save up for the television. This past July, the SuperPixel reduced its price by 40%, and sales during that month nearly tripled. TechWare, a popular electronics magazine, claims that the SuperPixel television should continue to see sales grow at this rate till the end of August.

Which of the following suggests that TechWare’s forecast is misguided?

We need to find an answer choice that implies that TechWare isn't well informed, i.e. sales would probably tank well before end Aug.

A) Most of the customers who had been saving up for the SuperPixel bought the television in July. - Most of the new customers (saving money) made their purchases. No sign of a new pool of customers either. Seems to be CORRECT.
B) Sales of the MegaPixel high definition television, an even more expensive model than the SuperPixel, saw declining sales in the month of July. - MegaPixel is out of scope.
C) Electronics sales tend to peak in August and December. - General trend, not specific to SuperPixel.
D) The SuperPixel tends to be an unreliable television and Lux Electronics makes a considerable profit from repairs. - Doesn't talk about sales.
E) The SuperPixel is the only model for which Lux Electronics plans a price reduction. - This may give a positive hope for Superpixel, but we have nothing to infer about sales of SuperPixel.

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The price of the SuperPixel high definition television, by Lux  [#permalink]

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New post 02 Sep 2015, 00:32
arhumsid wrote:
I felt that A is flawed because it assumed the following: (Harley1980 please comment)
The 40% discount will not make the TV affordable for those who wanted to buy but never saved for the same?



Hello arhumsid and grr8pe

I think the main difficulty with this question is that you try to completely destroy the conclusion.
You are correct that answer A talks only about one part of customers who save money and completely omit another group of customers who can buy TV and did not save the money.

But this is weaken question and in this type of question correct answer should only weaken conclusion and not completley destroy it.
That is why A is correct. It is weaken the conclusion by saying that one group of customers definitely will not buy this TV in the next month.

IMO E is strengthen answer because if this model is only one that has discount then chances that it will sale good is increased.
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Re: The price of the SuperPixel high definition television, by Lux  [#permalink]

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New post 16 Aug 2018, 16:58

Official Explanation


The SuperPixel television is very expensive, so it is not surprising that with the drastic price reduction many bought it (the television is popular and many save up to buy it). However, the argument assumes that the surge in sales that occurred in July, when the price reduction happened, will continue into August.

(A) provides a reason to doubt the claim: many who had been saving to buy the T.V. bought one in July. Therefore, the price reduction led many consumers (those who represented a pent-up demand) to buy the T.V. In August, there is no longer a pent-up demand, so sales should not be expected to be as high in July. (A) is therefore the answer.

(B) does not relate to SuperPixel and is thus irrelevant.

(C) would suggest that August would be a great sales month, as the paragraph predicts.

(D) relates to SuperPixel sets that have already been bought and in need of repair. Irrelevant.

(E) suggests that there will be no competition from other Lux models. (E) doesn’t provide a reason sales would not decrease in August.
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Re: The price of the SuperPixel high definition television, by Lux   [#permalink] 16 Aug 2018, 16:58
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