Business analyst: national motor
Business Analyst: National Motors began selling the Luxora”its new model of sedanâ in June. Last week, National released sales figures for the summer months of June, July, and August that showed that by the end of August only 80,000 Luxoras had been sold. Therefore, National will probably not meet its target of selling 500,000 Luxoras in the model’s first twelve months. Which of the following would be most useful to establish in order to evaluate the analyst prediction?
A. Whether new-car sales are typically lower in the summer months than at any other time of the year
B. Whether National Motors currently produces more cars than any other automaker
C. Whether the Luxora is significantly more expensive than other models produced by National Motors
D. Whether National Motors has introduced a new model in June in any previous year
E. Whether National Motors will suffer serious financial losses if it fails to meet its sales goal for the Luxora
OA : A
My ques: In option C why cant we compare the price of Luxora with other models as its says in the conclusion selling 500k luxoras target will not be met.
In option A- Irrespective of sales being low in first 3 months, how does it evaluate the argument? And if it is not low in the remaining months then the conclusion will be changed that national will be able to meet its target- which is not what the question wants. Right?
Hi Ria,
The conclusion that National Motors will not meet its target is based on the fact that during the summer months only 80000 pieces were sold. According to option A, the trend of low sales is specific only to those 3 summer months. Sales will pick up after the summer months. Hence there is a chance that National Motors will reach its target.
Hope this helps!
