Official Solution:
[b]Walmart has recently begun transitioning from its traditional warehouse-based retail model to an online-first model. A question has arisen about
whether this shift will lead to a reduction in the company’s fixed costs. This is quite likely, since expenses such as warehouse rentals and in-store salaries have historically contributed significantly to Walmart’s fixed costs.
In the argument given, the two boldfaced portions play which of the following roles?
[/b]
A. The first introduces the context for the argument; the second is the central claim the argument attempts to justify.
B. The first presents an issue that the argument seeks to evaluate; the second provides evidence in support of a prediction made in the argument.
C. Both the first and the second provide evidence in support of the main claim.
D. The first establishes the context for the argument's evaluation; the second identifies the subject of that prediction.
E. The first identifies the subject of the main conclusion; the second provides evidence supporting that conclusion.
Premises: • Walmart has recently begun transitioning from its traditional warehouse-based retail model to an online-first model.
• Expenses such as warehouse rentals and in-store salaries have historically contributed significantly to Walmart’s fixed costs.
Conclusion: This is quite likely
Content of the conclusion: Whether this shift will lead to a reduction in the company’s fixed costs?
A. The first identifies the subject of the main conclusion; the second provides evidence supporting that conclusion.
First part is incorrect as the subject of the main conclusion is the reduction in fixed costs. The first boldface describes the context for the conclusion, not the subject of the conclusion. Second part is also incorrect as the second boldfaced part is the question that the conclusion is about. The evidence supporting the conclusion is the part that begins with "since expenses such as...".
B. The first presents an issue that the argument seeks to evaluate; the second provides evidence in support of a prediction made in the argument.
It could be argued that the first part is correct as the Walmart transition is indeed the situation or issue that the argument further evaluates though to an extent it is just the context. The Second part is incorrect as second boldfaced part is the question or proposition that the conclusion is about. It's what is being predicted, not the evidence that supports that prediction. The evidence comes later in the argument.
C. Both the first and the second provide evidence in support of the main claim.
First part can be considered correct as that could be one of the premises used as evidence to the prediction. Second part however is completely incorrect as the second boldface states the question or proposition, it does not provide evidence to support the claim.
D. The first establishes the context for the argument's evaluation; the second identifies the subject of that prediction.
First part is correct as the first boldfaced statement sets the stage by providing the essential background information that the argument will evaluate the consequences of. Second part is correct as the argument makes a prediction ("This is quite likely") and the second boldfaced part ("whether this shift will lead to a reduction in the company’s fixed costs") explicitly states what that prediction is about.
E. The first introduces the context for the argument; the second is the central claim the argument attempts to justify.
First part is correct as the first boldface provides the necessary background information for the argument. Second part however is incorrect as the second boldface is the question that the conclusion is about. The central claim the argument makes is the conclusion itself ("This is quite likely") which is not highlighted.
Answer: D