A newly developed light bulb is much more cost-effective than conventional light bulbs: it costs only about 3 times what a conventional light bulb costs but it lasts up to 10 times as long as a conventional light bulb. ███████ ███ ██████████████ ███████ ███████ ██ █████████ ███ ██████████ ██ ███ ███ █████ ███ ███████ ████████ ████ █████ ███ █████ ████ █████ ██ ████ ████ ███████
The analyst predicts a new type of light bulb will sell poorly, even though it can last 10 times longer than a conventional light bulb and is only triple the cost.
The analyst assumes there’s something about the new bulb, the way it will be sold, or the light bulb market in general that makes the new bulb likely to fail. This means assuming the new bulb’s disadvantages relative to other bulbs on the market outweigh its apparent advantage in cost efficiency relative to conventional bulbs.
Each of the following, if █████ ████████ ███████ ███ ███ █████████ ██████████ ███████
The light generated ██ ███ ███ ████ ██ ██ ███ ██████ █████ ██ ███ █████████ █ ████ ██ ██████████ █████ ████ ██████ ████ ████████████
This supports the analyst’s prediction. It’s a reason for consumers to avoid the new bulb despite its apparent cost efficiency.
Most people who ████████ █████ █████ ██████ ██ ███ ███████████ █████ █████ ██████ ████ ████ ███████ ███ █████████ █████ ██████
This offers support for the analyst’s prediction. It suggests consumers care more about total cost—where the new bulb has a disadvantage—than about cost efficiency when purchasing new bulbs.
A manufacturer of ███ █████ ██ ████████████ █████ ████ ███ ██████████ ██████ ████ ███ ███ █████ ████ ████ ████ ███████████ ████ ██ ████████████ █████ ██████
This offers support for the analyst’s prediction. It’s a reason for consumers to doubt the actual cost efficiency of the new bulb when electricity consumption is considered.
The new bulb ██ ██ ██ ████████ ██ ███████ █████████ ███████████ ███████ ████ ████████ ██████████ ███ ████ ██ ████████ ██████████ ████ ██████
This doesn’t support the analyst’s prediction. There’s no indication consumers are less likely to purchase bulbs because they come in packs of no more than four.
A competing manufacturer ██ █████ ██ █████████ █ █████ ████ ████ █████ ██ █████ ██ ████ ██ █ ████████████ ████ ███ █████ ████ ████ █ ████████████ █████
This supports the analyst’s prediction. It’s a reason to believe the upcoming light bulb will be even more cost-efficient than the new bulb in question, and will therefore outcompete it.