The following appeared in a letter from the owner of the Sunnyside Towers apartment building to its manager.
"One month ago, all the showerheads on the first five floors of Sunnyside Towers were modified to restrict the water flow to approximately one-third of its original flow. Although actual readings of water usage before and after the adjustment are not yet available, the change will obviously result in a considerable savings for Sunnyside Corporation, since the corporation must pay for water each month. Except for a few complaints about low water pressure, no problems with showers have been reported since the adjustment. Clearly, restricting water flow throughout all the twenty floors of Sunnyside Towers will increase our profits further."
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.
作者: xiabd 时间: 2020-10-18 21:12:10
本帖最后由 xiabd 于 2021-1-26 10:43 编辑
76. The following appeared in a newsletter offering advice to investors.
"Over 80 percent of the respondents to a recent survey indicated a desire to reduce their intake of foods containing fats and cholesterol, and today low-fat products abound in many food stores. Since many of the food products currently marketed by Old Dairy Industries are high in fat and cholesterol, the company's sales are likely to diminish greatly and company profits will no doubt decrease. We therefore advise Old Dairy stockholders to sell their shares, and other investors not to purchase stock in this company."
Write a response in which you discuss what questions would need to be answered in order to decide whether the advice and the argument on which it is based are reasonable. Be sure to explain how the answers to these questions would help to evaluate the advice.