EA Critical Reasoning 2

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?

Accepted Answer

The productivity gain persisted over 6 months across diverse industries.

Answer

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?

Accepted Answer

The entire sector's stock prices rose 35% in the same period.

Answer

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?

Accepted Answer

The project may or may not cost over $1M.

Answer

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?

Accepted Answer

The firm's top competitors are increasing their marketing spend.

Answer

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?

Accepted Answer

The study does not control for other lifestyle factors.

Answer

Without controlling for confounding variables (smoking, diet, exercise), the higher incidence cannot be attributed to coffee alone.

EA - Executive Assesment Practice Test

EA - Executive Assesment Practice Test

EA Critical Reasoning 2