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Difficulty:
95%
(hard)
Question Stats:
39% (01:55) correct
61%
(02:09)
wrong
based on 5859
sessions
History
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Not Attempted Yet
When new laws imposing strict penalties for misleading corporate disclosures were passed, they were hailed as initiating an era of corporate openness. As an additional benefit, given the increased amount and accuracy of information disclosed under the new laws, it was assumed that analysts' predictions of corporate performance would become more accurate. Since the passage of the laws, however, the number of inaccurate analysts' predictions has not in fact decreased.
Which of the following would, if true, best explain the discrepancy outlined above?
(A) The new laws' definition of “misleading information” can be interpreted in more than one way.
(B) The new laws require corporations in all industries to release information at specific times of the year.
(C) Even before the new laws were passed, the information most corporations released was true.
(D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.
(E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.
ID: 500
Which of the following would, if true, best explain the discrepancy outlined above?
(A) The new laws' definition of “misleading information” can be interpreted in more than one way.
(B) The new laws require corporations in all industries to release information at specific times of the year.
(C) Even before the new laws were passed, the information most corporations released was true.
(D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.
(E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.
ID: 500
104
CR56601.02
CR56601.02
22 Apr 2020, 10:00
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A) is irrelevant because the passage states as a given "the increased amount and accuracy of information disclosed under the new laws". Whether or not they were misinterpreted the argument states very clearly that it increased the amount and accuracy of the info.
B) There is not logical connection from this to the discrepancy between the accuracy of analysts' predictions
C) Whether or not the information most corporations released was true, as in (a), the passage clearly states that the accuracy has increased (at least a little bit)
D) Even still, if just one of their sources (corporate disclosures) increased in accuracy, you would expect this to improve their performance in some way. This doesn't resolve the discrepancy.
E) This directly shows that since the amount of information released increased, the analysts may have had a hard time organizing it in order to make good predictions, even if the information is more accurate.
(e) is the right answer.
B) There is not logical connection from this to the discrepancy between the accuracy of analysts' predictions
C) Whether or not the information most corporations released was true, as in (a), the passage clearly states that the accuracy has increased (at least a little bit)
D) Even still, if just one of their sources (corporate disclosures) increased in accuracy, you would expect this to improve their performance in some way. This doesn't resolve the discrepancy.
E) This directly shows that since the amount of information released increased, the analysts may have had a hard time organizing it in order to make good predictions, even if the information is more accurate.
(e) is the right answer.
02 Nov 2021, 23:25
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generis
New laws imposed strict penalties for misleading info. Also they required increased amount and accuracy of information.
So analysts' predictions were expected to become more accurate.
But number of inaccurate analysts' predictions has not decreased.
What will explain this?
A) The new laws' definition of “misleading information” can be interpreted in more than one way.
We are not given that it is being interpreted incorrectly to continue to mislead. Even if that were the case, one would still wonder that given that corporations are required to increase the amount and accuracy of information, why hasn't the number of analysts' incorrect predictions decreased?
B) The new laws require corporations in all industries to release information at specific times of the year.
Irrelevant.
C) Even before the new laws were passed, the information most corporations released was true.
Even if information released was true, the new laws require more information to be released and for it to be not misleading (say one side of the story is told but not the other). One would expect the analysts's predictions to become more accurate.
D) Analysts base their predictions on information they gather from many sources, not just corporate disclosures.
If one source's accuracy has improved, one would expect the overall result to improve. It may not become perfect because other sources are not inaccurate but one would expect overall accuracy to improve.
E) The more pieces of information corporations release, the more difficult it becomes for anyone to organize them in a manageable way.
This tells us that new laws bring in new troubles too. Though info is more and accurate, the more pieces of info lead to more difficulty in organising. Hence, the analysts's predictions have not improved makes sense.
Answer (E)
