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From an article in the Wall Street Chronicle: Sales statistics of major electronics

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From an article in the Wall Street Chronicle: Sales statistics of major electronics manufacturers with sales in the United States show that 80% of consumer electronics (such as televisions, DVD players, and computers) sold in the U.S. last year were manufactured in China.
From an article in Consumer Results Magazine: The results from last year's survey on consumer electronics choices show that while products made in China are still very popular, more and more Americans are buying products made in Japan, Germany, and the United States. These three countries combined account for 38% of products sold in the U.S. last year.
For both of the findings to be accurate, which of the following must be true?
(A) More Americans who do not purchase consumer electronics prefer goods produced in China to those produced elsewhere.
(B) Major electronics manufacturers do not limit their production plants to one country, often dividing different stages of manufacturing among plants around the world.
(C) Most consumer electronics purchased last year that were not manufactured in China were manufactured and sold in the United States.
(D) The average price of a Chinese-manufactured consumer electronics device is lower than that of a device manufactured elsewhere.
(E) Major electronics manufacturers sell a higher percentage of Chinese-produced consumer devices than do smaller manufacturers.
Official Answer

1 Answer

Official Explaination: This is an explanation/paradox question. From a quick reading, the two reports seem to claim that 80% of electronics were manufactured in China, and 38% of products were made in other places. Clearly that's incorrect--there must be more to the story. The distinction is in the Wall Street Chronicle claim, which is limited to "major" electronics manufacturers. The second claim does not make that distinction. Thus, it would appear that, while 20% of products sold in the U.S. made by "major" electronics manufacturers did not come from Chinese manufacturers , a greater percent of products sold in the U.S. by non-major manufacturers did not come from China. 

Think of it like a weighted average question. All manufacturers are either major or non-major. If 20% of the major company sales were non-China made and 38% of total sales were non-China made, then non-major sales must have been greater than 38% non-China made. Choice (E) is the only option consistent with that conclusion. If the products of non-major manufacturers are more than 38% non-China made, they must be much less than 80% made in China. Thus, (E) is correct.


answered Feb 3, 2015 by Guru (5,628 points)
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