To gauge national small-business owner optimism regarding upcoming revenue growth, a trade association surveyed 400 founders who are active members of a premier high-growth technology startup incubator in Silicon Valley. Based on the finding that 85 percent of respondents anticipated significant revenue increases in the next quarter, the association concluded that small-business owners nationwide are overwhelmingly optimistic about their upcoming financial outlook. Which of the following best identifies a reasoning flaw in the trade association's argument?
- It draws a broad conclusion about all small-business owners nationwide based on a sample that is likely unrepresentative of the general small-business population.Cevap
- BIt fails to establish that revenue growth in high-technology startups directly causes broader national economic expansion.
- CIt assumes that a high level of business owner optimism is necessary for a company to achieve quarterly revenue increases.
- DIt overlooks the possibility that surveyed founders may have exaggerated their projected financial performance.
- EIt mistakes a statistical correlation between incubator membership and optimism for a direct causal link.
Cevap
The argument flaw is that it draws a broad conclusion about all small-business owners nationwide based on a sample that is likely unrepresentative of the general small-business population.
The correct answer accurately identifies that founders in a premier Silicon Valley technology incubator represent a highly specific, resource-advantaged sector. Extrapolating their optimism to all small-business owners nationwide commits an unrepresentative sampling flaw.
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Sampling and Generalization Flaws