Official Explanation* Fact 1: According to the annual sales report, the general grocery section, which contributes 70% of the supermarket’s profits, has performed unusually bad this year.
* Fact 2 (Counter-Premise): Bakery and dairy section has contributed 34% to the profits of this year, up from 19% last year.
* Conclusion: More Bakery and dairy items must have been sold this year than last year.
What cases might not have been considered?
* Missing Link: What if total supermarket profits significantly decreased this year while bakery and dairy items did not have sales significantly lower than that of last year?
* In that case, the high percentage contribution to profits by bakery and dairy section can also be explained by a significant reduction of denominator without a significant decrease in numerator.
* Furthermore, if the supermarkets’ overall profits reduced significantly with most sections having suffered, the bakery and dairy section might not even have had to sell more items than it did last year.
* A similar or even a slight decrease in sales volume of bakery and dairy section might have bumped up its profit contribution percentage in case the overall profits plummeted.
A.This year, the supermarket's overall sales and profits came down by sixty percent, and the contribution of the general grocery section to the overall profits was 65 percent
Correct OptionOption A Feedback:
This is as per our Pre-thinking. This weakens the conclusion. Correct choice.
B.The fourth section’s contribution to the supermarket’s profits has been just about 29 percent this year.Option B Feedback:
That doesn’t explain whether bakery and dairy section saw more sales this year than last year. Thus, this is a distortion.
C.Based on the statistics pertinent to just three of the four sections of the supermarket, it is impossible to determine whether two of the sections have done better.Option C Feedback:
This states a general fact that has no bearing on whether the bakery section did better than it did last year. This is a distortion.
D. The supermarket is in a locality where the consumption of bakery and dairy products is lower than in most other localities in the region.Option D Feedback:
The locality and its preferences doesn’t impact the conclusion, drawn on the basis of sales numbers, drawn by the store owner. Thus, this is out of scope.
E. As a rule, in supermarkets, the general grocery section contributes most to their profitsOption E Feedback:
However, this general phenomenon did not occur this year. This information has no relevance to determining whether the bakery and dairy section performed better this year than last. This is a distortion.