Financial Columnist: In 2015, traditional brick-and-mortar retailers accounted for 80 percent of all retail corporate bankruptcies, while online-only retailers accounted for the remaining 20 percent. Since then, the total number of online-only retailers operating in the market has quadrupled. Last year, traditional brick-and-mortar retailers accounted for only 55 percent of all retail corporate bankruptcies, whereas online-only retailers accounted for 45 percent. It is clear from these figures that the financial stability of traditional brick-and-mortar retailers has improved since 2015, as they are now experiencing fewer bankruptcies annually than they did previously.
Which of the following most accurately describes a flaw in the financial columnist's reasoning?
- It infers a decline in an absolute quantity based solely on a decline in the proportion of a whole, without establishing whether the total pool has remained stable.Cevap
- BIt derives a conclusion regarding a shift in the percentage of a total based solely on evidence that the absolute size of one group within that total has increased.
- CIt takes for granted that an increase in the absolute number of online-only retailers guarantees an increase in the overall number of retail bankruptcies across the market.
- DIt fails to account for the possibility that the 2015 statistics regarding corporate bankruptcies were incomplete or based on a mathematically flawed sampling method.
- EIt treats the introduction of new competitors into a market as the primary cause of shifting bankruptcy proportions, without ruling out alternative economic factors.