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Bunuel
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I did not get why B is the answer?. It says the Customer Acquisition was inflated means 'INCOMING' customers were LESS than actually shown. But it doesn't talk about the falling numbers. Means the falling is the same level (as nothing is given about falling , so we assume it to be same' but the incoming of customers are actually less.Then it should be of more concern not less concern.

If Reported added customers = 10 M and people going away = 5M so earlier it was problematic. But answer is looking for something which says this is LESS WORSE than the shown. B option says Reported data was inflated means in reality Reported customer is less than 10 M so lets say Actual data = 8M then out of 8M users , 5M got away which is far more problematic.

We can't just say the data is flawed so it's not of that much concern.
Still if you choose B then explain my example also.
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Official Explanation:



Answer: B

We have to somehow show that the statistics are not a sign for worry. B does this best by stating that the original statistics were most likely inflated so the fall in numbers may not actually be as steep as it looks.

(A) But what about after a few months? This would still be a worrying sign for the companies.

(B) The correct answer.

(C) There is no real connection between the sale of mobile phone handsets and how many subscribers join mobile phone companies every month.

(D) If despite this fact the numbers are going down, then there must be some problem.

(E) Irrelevant to the argument.
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Hey, I struggled with this answer for a while too. I finally made peace with the following logic. Not sure how sound it is, but it made sense to me.
The concern that we're looking to address is that this reported fall in numbers may not necessarily be as terrible as it seems.

B gives us some indication that the fall may not be as drastic as it looks because the base we're looking at is itself inflated. Assume the reported [inflated] number for the previous month is 10 Mn and the current decline is 2 Mn. Now a drop from +10 to -2 Mn looks bad. But if we are told that the accurate figure for the prior month is 5 Mn, the drop seems less scary.

Note that this situation is still not ideal but it is not as terrible as it first looked and this is exactly what the question asks us to find.

Apologies in case of any mistakes and hope this helps.
mkeshri185
I did not get why B is the answer?. It says the Customer Acquisition was inflated means 'INCOMING' customers were LESS than actually shown. But it doesn't talk about the falling numbers. Means the falling is the same level (as nothing is given about falling , so we assume it to be same' but the incoming of customers are actually less.Then it should be of more concern not less concern.

If Reported added customers = 10 M and people going away = 5M so earlier it was problematic. But answer is looking for something which says this is LESS WORSE than the shown. B option says Reported data was inflated means in reality Reported customer is less than 10 M so lets say Actual data = 8M then out of 8M users , 5M got away which is far more problematic.

We can't just say the data is flawed so it's not of that much concern.
Still if you choose B then explain my example also.

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