Logical reasoning PrepTest 105 · Section 2 · Question 11

Question prompt

A certain credit–card company Remaining source text redacted.
Why the credited answer is right

Credited answer: D

The notes below walk through why it fits the stem and how to eliminate the rest.

Argument or Facts

Argument

Valid or Flawed

Flawed

Question Type

Strengthen with Necessary Premise Questions

Stimulus Summary

Credit card customers can use points to get discounted merchandise shipped to them, so customers who buy stuff using this program spend less than if they shopped at a retail store.

Answer Anticipation

The conclusion here is comparative - people who buy via the credit card program spend less than they would if they buy the merch in retail stores. So we need to check to see if we can find information that allows that comparison to be made. What do we learn about the costs of this merch via the credit card and at retail locations? Well, really, only one thing - the credit card program offers these items at a price lower than the manufacturers’ suggested retail price. That compares the cost of the merch via the rewards program to the suggested retail price. However, that falls short of showing that it’ll be cheaper to get it through the rewards program than at a retail store. First off, the retail store might itself offer a discount! If their discount matches that of the credit card rewards program, then it wouldn’t be cheaper to get it via that program. There also isn’t a discussion of other costs - for example, shipping and handling. The credit card company’s program allows purchase by mail, so the costs associated with that might eat up any discount and make it cheaper to just pick it up at the store. So we should be looking for answers that address the costs of retail and the rewards program. It could discuss retailers selling at lower than suggested retail price, or extra costs associated with the rewards program, or even discounts that retailers offer.

Answer choices

  1. A
    The merchandise that can Remaining source text redacted.
    Why choice A is not credited
    The comparison in the conclusion is between purchasing the merchandise via the credit card rewards program and via a retail store, so the prices other credit card companies offer is out of scope.
  2. B
    The bonus points cannot Remaining source text redacted.
    Why choice B is not credited
    The conclusion is based on the amount spent if they would purchase it at a retail store, so the conclusion doesn’t apply in a situation where the item isn’t available at a store.
  3. C
    The credit–card company does Remaining source text redacted.
    Why choice C is not credited
    The conclusion is about customers who purchase merch using the rewards program, so whatever requirements the credit card company puts forward, these customers have already met. As such, this answer isn’t a necessary premise.
  4. D
    The amount credit–card customers Remaining source text redacted.
    Why choice D matches the stem
    This answer addresses another cost associated with ordering from the credit card company by mail versus buying it from a retail location. If the cost of shipping brings the total higher than the full retail price charged, then it’d be cheaper to buy it at a retail store, undermining the conclusion. This answer is therefore a necessary premise.
  5. E
    The merchandise available to Remaining source text redacted.
    Why choice E is not credited
    The argument requires only that the price charged by retail stores is higher than the discounted price charged through the rewards program, plus any shipping and handling - so it doesn’t need to be higher than suggested retail price.

What this tests

Question analytics

Based on historical answer selection rates for this question.

Answer choice distribution

  1. A 5%
  2. B 4%
  3. C 8%
  4. D Credited 72%
  5. E 11%

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Discussion

  • Is E purely distraction? 1 reply

    Started by Crook

  • Diagram 1 reply

    Started by KatrinaMusa

  • Help 3 replies

    Started by Shememories