EA Critical Reasoning 2 — Questions and Answers
Question 1: Argument: Reducing the workweek to 4 days will increase productivity. Evidence: A pilot program showed a 13% productivity gain. Which finding most strengthens this argument?
- The pilot ran for only 2 weeks.
- The productivity gain persisted over 6 months across diverse industries. (Correct answer)
- Participants self-reported their productivity levels.
- The program was voluntary.
Correct answer: The productivity gain persisted over 6 months across diverse industries.
A sustained gain across multiple industries over six months provides strong, generalizable evidence for the conclusion.
Question 2: A CEO states: 'Our stock price rose 30% after we announced the merger, proving the market believes the merger is beneficial.' Which of the following, if true, most undermines this claim?
- Stock prices always rise after merger announcements.
- The entire sector's stock prices rose 35% in the same period. (Correct answer)
- The CEO owns a large amount of company stock.
- Analysts rated the merger positively.
Correct answer: The entire sector's stock prices rose 35% in the same period.
If the whole sector rose more than the company, the merger announcement may not be the cause of the price increase.
Question 3: All projects over $1M require executive approval. A project requires executive approval. What can be definitively concluded?
- The project costs over $1M.
- The project may or may not cost over $1M. (Correct answer)
- Executive approval is rarely given.
- The project is financially risky.
Correct answer: The project may or may not cost over $1M.
The conditional says over-$1M projects require approval, but approval may also be required for other reasons — so the project may or may not exceed $1M.
Question 4: A firm plans to cut its marketing budget to reduce costs. The assumption is that this will not significantly reduce sales. Which of the following most challenges this assumption?
- Marketing budgets are typically 10% of revenue.
- The firm's top competitors are increasing their marketing spend. (Correct answer)
- The firm's products have a loyal customer base.
- The firm's products have high brand recognition.
Correct answer: The firm's top competitors are increasing their marketing spend.
If competitors increase marketing while the firm cuts back, the firm risks losing market share, threatening the sales stability assumption.
Question 5: An argument concludes that coffee consumption causes heart disease, citing a study of 500 heavy coffee drinkers who had a 20% higher incidence of heart disease. What critical flaw exists?
- 500 participants is too small a sample.
- The study does not control for other lifestyle factors. (Correct answer)
- Coffee is consumed worldwide.
- Heart disease has many causes.
Correct answer: The study does not control for other lifestyle factors.
Without controlling for confounding variables (smoking, diet, exercise), the higher incidence cannot be attributed to coffee alone.
Question 6: A consultant recommends Strategy X over Strategy Y because X worked well in Europe. The assumption is that results from Europe will apply to the US market. This assumption is most vulnerable if:
- The European market is smaller than the US market.
- Consumer behavior in Europe differs significantly from the US. (Correct answer)
- Strategy X was implemented 5 years ago in Europe.
- The consultant has only worked with European companies.
Correct answer: Consumer behavior in Europe differs significantly from the US.
If consumer behavior differs significantly between markets, the strategy's success in one market cannot be assumed to transfer.
EA Critical Reasoning 2
Argument: Reducing the workweek to 4 days will increase productivity.
Evidence: A pilot program showed a 13% productivity gain.
Which finding most strengthens this argument?