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three most profitable categories of vehicles

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Senior Manager
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three most profitable categories of vehicles  [#permalink]

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New post 27 Feb 2018, 06:54
MagooshExpert wrote:

Dear MagooshExpert Carolyn

I think it's better to start a new topic because it is a new CR question , not the lym disease one from another thread, [url]https://gmatclub.com/forum/top150-cr-lyme-disease-is-caused-by-a-bacterium-transmitted-to-human-210857-20.html
[/url]I am reading the listed blog you suggested.
a question from More on Assumption Questions

1) In anticipation of the coming year, Tecumseh Autos, a national auto manufacturer, is anticipating sales of its vehicles. Tecumseh manufactures compact cars, sedans, minivans, trucks, SUVs, and sports cars. In all categories of vehicles, Tecumseh sets prices so that the profit per vehicle is, on average, about the same. Since the best indicator for sales in each category are the sales last year, Tecumseh’s marketing analysts’ prediction of the three most profitable categories of vehicles in the coming year will be compact cars, minivans, and SUVs respectively.
Tecumseh’s marketing analysts’ prediction relies on which one of the following assumptions?
(A) Across all manufacturers, the most popular cars on the road in America are compact cars, minivans, and SUVs.
(B) The models of Tecumseh’s compact cars to be sold in the upcoming year are identical to or similar to those of last year.
(C) Last year, no other category of Tecumseh’s vehicles generated more profits than SUVs and less than minivans.
(D) The prediction will be refined after an analysis of the sales in the first quarter of this year.
(E) The number of models of compacts cars that Tecumseh produces is greater than the number of models of either minivans or SUVs.


Q1
I did not get C is the correct one
I did not get the information about the order of the best selling order from the prompt -- the Tecumseh predicts the best-selling vehicle categories this year will be, in order, (1) compact cars, (2) minivans, and (3) SUVs,
even as C states that generated more profits than SUVs and less than minivans.
it cannot be true that the third best one is compact cars, then the conclusion is not "must be true"

Q2
I cross off B because B rephrases the stated premise : Since the best indicator for sales in each category are the sales last year,
is the reasoning solid ?

Thanks in advance

Have a nice day
>_~
Magoosh GMAT Instructor
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Joined: 30 Oct 2017
Posts: 231
Re: three most profitable categories of vehicles  [#permalink]

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New post 27 Feb 2018, 18:10
zoezhuyan wrote:
Dear MagooshExpert Carolyn

I think it's better to start a new topic because it is a new CR question , not the lym disease one from another thread, [url]https://gmatclub.com/forum/top150-cr-lyme-disease-is-caused-by-a-bacterium-transmitted-to-human-210857-20.html
[/url]I am reading the listed blog you suggested.
a question from More on Assumption Questions

In anticipation of the coming year, Tecumseh Autos, a national auto manufacturer, is anticipating sales of its vehicles. Tecumseh manufactures compact cars, sedans, minivans, trucks, SUVs, and sports cars. In all categories of vehicles, Tecumseh sets prices so that the profit per vehicle is, on average, about the same. Since the best indicator for sales in each category are the sales last year, Tecumseh’s marketing analysts’ prediction of the three most profitable categories of vehicles in the coming year will be compact cars, minivans, and SUVs respectively.
Tecumseh’s marketing analysts’ prediction relies on which one of the following assumptions?
(A) Across all manufacturers, the most popular cars on the road in America are compact cars, minivans, and SUVs.
(B) The models of Tecumseh’s compact cars to be sold in the upcoming year are identical to or similar to those of last year.
(C) Last year, no other category of Tecumseh’s vehicles generated more profits than SUVs and less than minivans.
(D) The prediction will be refined after an analysis of the sales in the first quarter of this year.
(E) The number of models of compacts cars that Tecumseh produces is greater than the number of models of either minivans or SUVs.


Q1
I did not get C is the correct one
I did not get the information about the order of the best selling order from the prompt -- the Tecumseh predicts the best-selling vehicle categories this year will be, in order, (1) compact cars, (2) minivans, and (3) SUVs,
even as C states that generated more profits than SUVs and less than minivans.
it cannot be true that the third best one is compact cars, then the conclusion is not "must be true"

Q2
I cross off B because B rephrases the stated premise : Since the best indicator for sales in each category are the sales last year,
is the reasoning solid ?

Thanks in advance

Have a nice day
>_~


Hi zoezhuyan!

Happy to help! :-)

Here's the argument:

1) In anticipation of the coming year, Tecumseh Autos, a national auto manufacturer, is anticipating sales of its vehicles. Tecumseh manufactures compact cars, sedans, minivans, trucks, SUVs, and sports cars. In all categories of vehicles, Tecumseh sets prices so that the profit per vehicle is, on average, about the same. Since the best indicator for sales in each category are the sales last year, Tecumseh’s marketing analysts’ prediction of the three most profitable categories of vehicles in the coming year will be compact cars, minivans, and SUVs respectively.

The key here is the word "respectively". "Respectively" means "in order". So that tells us that the the predictions for the first most profitable vehicle will be compact cars, followed by minivans, followed by SUVs last. The passage tells us that these predictions were based on last year's sales, which means that we can logically conclude that the sales last year were (1) compact cars, (2) minivans, and (3) SUVs. If this is the order that we can assume from the argument, that means that there was no category in between compact cars and minivans, or in between minivans and SUVs (since they are ranked 1, 2, and 3 in terms of sales). If another type of car, like sports cars, actually had more sales than SUVs, then this order wouldn't make sense, and would therefore contradict the argument. This all matches up with choice C, which says that "the argument rests on the assumption that last year, there was no vehicle that generated more profits than SUVs and less than minivans."

For B, it's important to be careful with the wording -- it's not exactly restating that part of the argument. It is specifically referring to compact cars only, which might have different models that could vary from year to year. So that's not exactly why we eliminate B.

Hope that helps! :-)
-Carolyn
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Re: three most profitable categories of vehicles  [#permalink]

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New post 27 Feb 2018, 22:55
MagooshExpert wrote:
Hi zoezhuyan!

Happy to help! :-)

Here's the argument:

1) In anticipation of the coming year, Tecumseh Autos, a national auto manufacturer, is anticipating sales of its vehicles. Tecumseh manufactures compact cars, sedans, minivans, trucks, SUVs, and sports cars. In all categories of vehicles, Tecumseh sets prices so that the profit per vehicle is, on average, about the same. Since the best indicator for sales in each category are the sales last year, Tecumseh’s marketing analysts’ prediction of the three most profitable categories of vehicles in the coming year will be compact cars, minivans, and SUVs respectively.

The key here is the word "respectively". "Respectively" means "in order". So that tells us that the the predictions for the first most profitable vehicle will be compact cars, followed by minivans, followed by SUVs last. The passage tells us that these predictions were based on last year's sales, which means that we can logically conclude that the sales last year were (1) compact cars, (2) minivans, and (3) SUVs. If this is the order that we can assume from the argument, that means that there was no category in between compact cars and minivans, or in between minivans and SUVs (since they are ranked 1, 2, and 3 in terms of sales). If another type of car, like sports cars, actually had more sales than SUVs, then this order wouldn't make sense, and would therefore contradict the argument. This all matches up with choice C, which says that "the argument rests on the assumption that last year, there was no vehicle that generated more profits than SUVs and less than minivans."

For B, it's important to be careful with the wording -- it's not exactly restating that part of the argument. It is specifically referring to compact cars only, which might have different models that could vary from year to year. So that's not exactly why we eliminate B.

Hope that helps! :-)
-Carolyn


Awesome explanation, great helpful.

Thanks again

Have a nice day
>_~
Magoosh GMAT Instructor
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Joined: 30 Oct 2017
Posts: 231
Re: three most profitable categories of vehicles  [#permalink]

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New post 01 Mar 2018, 16:30
zoezhuyan wrote:

Awesome explanation, great helpful.

Thanks again

Have a nice day
>_~


Glad to help! You too :-)
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Re: three most profitable categories of vehicles   [#permalink] 01 Mar 2018, 16:30
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