PT107.S1.Q9

PrepTest 107 - Section 1 - Question 9

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Jean: Our navigational equipment sells for $1,100 and dominates the high end of the market, but more units are sold by our competitors in the $700 to $800 range. ██ ██████ ███ █ ████████ ██████ █████ █████ █████ ██ ██ ████████ ███ ███████ █████ █████ ██████████ ██ ████████ ███ ████ ████

██████ █ █████████ ███ █████████ █████ ██ █████████ ███ █████████ ███ ███████ ████ ████████ ██████ ████ ███ ████████ ██████ █████ ███ ███ ███████████ ██ ███ █████████ ██████ ██ ██ █████ ███████ ████ ███ █████ █████ ████ ███ ███████ ██████

Speaker 1 Summary

Jean concludes that we should add a low-cost model of our navigational equipment. This is because it would allow us to increase our overall sales while continuing to dominate the high end.

Speaker 2 Summary

Tracy concludes that we shouldn’t add a low-cost model. This is because adding a low-cost model would allow competitors to be on an equal footing in the high-cost market, which might hurt our overall sales.

Objective

We’re looking for a point of disagreement. The speakers disagree about whether we should add a low-cost model. They also disagree about whether adding a low-cost model would still allow us to dominate the high end market.

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9.

Jean's and Tracy's statements most ████████ ███████ ████ ████ ████████ ████ █████ ███ ██ ███ █████████ █████████████

a

There is a ███████ █████████ ███ ███████ ██ ███ ████████ ██████ ████ █████ ██ ██ ███ █████████ ███████

Neither speaker expresses an opinion. They do have opinion about whether we can increase our overall sales by adding a low-end model, but that doesn’t imply an opinion about whether there’s more money to be made in the low-end market vs. the high-end market.

6%
b

The proposed cheaper ██████ ██ ██ ████ ████ ██████████ █████ ████ ██ █████████ ███ █████ █████████ ██ ██████ ███ █████████ ███████ ██████

Neither speaker expresses an opinion. Nobody says anything suggesting a belief about whether low-end purchasers would have purchased the current model.

2%
c

The company could ████████ ███ ████████ ██████ ██ ███ ████ ███ ██ ███ █████████ ███ █████████ ███████

Jean doesn’t express an opinion. Although she thinks we could increase our sales by selling a low-cost model, that doesn’t mean she thinks we can dominate the low-cost market. Maybe she thinks we can make a small amount of additional money.

7%
d

The company would ██ ██████ ████████ ███ █████████ ██████ ██ ██ █████ ███████ █ ████████ ██████

The speakers disagree. Jean thinks we can continue to dominate the high end even after selling a low-cost model. Tracy thinks selling a low-cost model would put our competitors on an equal footing with us in the high-cost market. That means we wouldn’t dominant anymore.

84%
e

Decreased sales of ███ █████████ █████ █████ ██████ ██ ████ █████ ███ ███ ████████ ████████ ██████

Neither expresses an opinion. Jean doesn’t mention decreased sales of the high-cost model. Tracy suggest our sales might decrease in the high-end market by introducing a low-cost model, but doesn’t discuss how this would affect sales of a low-cost model.

1%

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