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Bunuel
It appears that the number of people employed by a typical American software firm decreased in the 1980s and 1990s. This trend is borne out by two studies, conducted 20 years apart. In a large 1980 sample of randomly chosen American software firms, the median size of the firms’ workforce populations was 65. When those same firms were studied again in 2000, the median size was 57.

Which of the following points to the most serious logical flaw in the reasoning above?


A. The median number of employees in American firms in many industries decreased during the 1980s and 1990s.

B. During the 1980s and 1990s, many software firms increased the extent to which they relied on subcontractors to write code.

C. The data in the studies refer only to companies that existed in 1980.

D. The studies focused on the number of employees, but there are many ways of judging a firm’s size, such as revenues and profits.

E. The median number of employees is not as sound a measure of the number of employees employed in an industry as is the mean number of employees, which accounts for the vast size of the few large firms that dominate most industries.






KAPLAN OFFICIAL EXPLANATION



STEP 1: IDENTIFY THE QUESTION TYPE
Since the question stem asks for a “logical flaw,” you’re dealing with a Flaw question here.

STEP 2: UNTANGLE THE STIMULUS
The argument concludes that the typical American software firm employs fewer people in the 2000s than it did in the 1980s and 1990s. This conclusion is supported by two studies; in order for the conclusion to be valid, both studies need to be representative.

STEP 3: PREDICT THE ANSWER
The sample in the 1980 study seems legitimate: it was large and randomly chosen. However, notice the problem with the 2000 study: it uses the same firms as in the 1980 study. The firms are no longer randomly chosen, nor does the sample size account for the many software firms that presumably sprang up between 1980 and 2000. In other words, the sample in the second survey was not representative of all American software firms.

STEP 4: EVALUATE THE CHOICES
This prediction matches (C), which pinpoints a problem with the representativeness of the 2000 survey. If the firms surveyed included only those that also existed 20 years ago, then no information is included about firms that have come into existence since then. If the survey is not based on information about all American software firms, including those that have come into existence over the last 20 years, then the survey is not representative, and any conclusions drawn from those results are called into question. (A)’s focus on many industries is irrelevant to the argument, which is concerned only with the number of people employed by a typical American software firm. (B) gives a plausible explanation of why the median size of firms is decreasing, but it fails to describe a flaw in the argument. (D) is irrelevant: the survey is concerned with the firm’s size in terms of workforce population. All other measures of a firm’s size are irrelevant. Finally, (E) is not a flaw in this argument. While it may be true that the mean is a better measure for total workforce population in an industry, this argument concerns the number of employees in a typical firm in one industry, not across the industry as a whole
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Hi, there is a lot of confusion between C and E. Let's understand why C is the answer and not E.

Read the question,it asks to find logical flaw.
C does exactly that. It is showing a limitation of the author's reasoning that the data is only about 'a typical software firm'. Dude,what about others? So,I go for C.

Let's see E,
It is just suggesting a new way. Does this make the old reasoning wrong? Can't say. So,E is clearly not the answer.

Hope it helps,guys:)

Posted from my mobile device
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Bunuel
It appears that the number of people employed by a typical American software firm decreased in the 1980s and 1990s. This trend is borne out by two studies, conducted 20 years apart. In a large 1980 sample of randomly chosen American software firms, the median size of the firms’ workforce populations was 65. When those same firms were studied again in 2000, the median size was 57.

Which of the following points to the most serious logical flaw in the reasoning above?


A. The median number of employees in American firms in many industries decreased during the 1980s and 1990s.

B. During the 1980s and 1990s, many software firms increased the extent to which they relied on subcontractors to write code.

C. The data in the studies refer only to companies that existed in 1980.

D. The studies focused on the number of employees, but there are many ways of judging a firm’s size, such as revenues and profits.

E. The median number of employees is not as sound a measure of the number of employees employed in an industry as is the mean number of employees, which accounts for the vast size of the few large firms that dominate most industries.




Key focus areas:

1) Conclusion: General trend was median number of employees decreased in an industry.

2) Evidence 1: A LARGE sample of companies operational in 1980 showed median size to be 65.

3) Evidence 2: The SAME SAMPLE was used and it showed median size to be 57.

4) Key words: LARGE, THOSE SAME FIRMS, MEDIAN, TYPICAL AMERICAN SOFTWARE FIRM.

All of the above helps us connect to the correct answer and become sure of the choice.

Question type: Logical flaw

A. Many industries - GMAT doesn't like CR answers where another Geography, Location or Industry is used an evidence to support a certain Geography, Location or Industry in question. Having said that, this option agrees with the conclusion by saying the trend was observed in other industries also so there is no flaw. We know there is a flaw somewhere, we need an option which helps find that flaw. So this is incorrect.

B - MANY - refers to more than one but not most/majority. Knowing that many firms used contractors instead of employees doesn't explain why the trend decreased. The trend could only have decreased if it came from more than 50% i.e. Majority of the companies not from MANY companies. So this option is incorrect.

C - Only to companies that existed in 1980s = THOSE FIRMS = We can see that one of the keyword does match this option. If the LARGE SAMPLE of companies in 1980s consisted of 100 companies and if let's say 70 companies went bankrupt then only 30 companies remained by 2000 and so those firms would refer to those 30 companies. Now the study done in 2000 actually used a SMALLER SAMPLE = opposite of the study in 1980 = which means a variable changed and this change showed a wrong picture of decreasing trend. It would be wrong to GENERALISE the results of the two studies when 2nd study had a very small sample size (not representative of the industry). Therefore, this option clearly points out a logical flaw.

D - An Alternative Method - An option suggesting a better method/approach is usually not a correct answer. The logical flaw in the study is not pointed out here, this option is just saying there was a better way to do it. It is not saying it was the right way to do it. Therefore, this option is incorrect.

E - Not the right method - This option does exactly what we asked for in D. It say Median is not the correct method, mean is. But the reasoning it gives is where this the option goes wrong. It say mean is better suitable for LARGE SAMPLES. But if you paid attention to option C, you would have realised that LARGE SAMPLE became SMALL SAMPLE over the 20-year gap. If that is true, then Mean wouldn't have been the correct method by its own reasoning. Therefore, logically this option is incorrect.

Therefore, Option C is the correct answer.

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