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tarek99
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tarek99
According to the latest financial figures, the Cyclic Corporation’s profits for the third quarter are up 20% from the same period a year ago.

Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?


a) This year’s profits from the second quarter are also up 20% from the same period a year ago.

b) Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.

c) At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters.

d) In previous years, the third quarter has consistently been the most profitable of the year.

e) This year, the dividend paid to shareholders has been increased by 2 cents a share over last year.





Please provide your explanation when choosing your answer. This should be a good mental practice.



A: 1st and fourth could be down by 200%. This isnt enough.
B: Irrelevant
D: this almost weakens the argument. but again we could create two scenarios one where every quarter is up by 10% or one where all quarters but the third are down by 100%, etc... Insuff.
E: Irrelevant. When doing CR's try not to take outside knowledge into the CR. Usually doesnt pay off. general info is ok, but this topic is simply out of scope.


C: There is no gurantee that the other quarters actually went up. however, we are asked to find the answer choice that would BEST help us conclude that overall profits increased. Thus this is the best choice.



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