Multiple choice

What is the inherent, if misplaced, assumption of CRT wholesalers?

Directions: Answer the question based on the following passage.

In a market study it was observed that for their homes people now prefer buying LCD screens to the old school CRT monitors. The drop in the sales of the CRT monitors and TV units is evidence that the future is dark for the CRT market. Last week the telecom ministry published a tender for more than 500 computer monitors. The CRT wholesalers sending their bids are very pessimistic about getting this order.

  1. The drop in the sales of CRT monitors is not seasonal.

  2. Computers are the chief source of entertainment in many homes.

  3. The telecom ministry makes its purchases only through tenders.

  4. CRT monitors and TV units are losing popularity in the rural market also.

  5. The preferences of the telecom ministry are similar to personal preferences for homes.

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

(1) Incorrect. Even if CRT monitors demand is seasonal, the pessimism will still hold good because fall in seasonal demand means fall in total demand. (2) Incorrect. Home entertainment statistics are irrelevant. The argument is about LCD and CRT monitors, not about computers. (3) Incorrect. The mode of purchase is not the issue, the specification of purchase is, CRT monitor manufacturers have also submitted a tender. (4) Incorrect. This is additional, though irrelevant evidence, not an inherent assumption. (5) Correct. The evidence is home preference, the conclusion is general. This is flawed assumption because the requirements of the two would be quite different. This assumption is explicitly stated in (5). Only if the ministry prefers similar monitors to the ones they use at home and the general demand comes down, will the pessimism of CRT wholesalers still hold water?