📊 GMAT Exam Prep

A retail company implemented a new 'incentive program' for sales staff, leading to a 20% increase in average monthly sales per employee. The CEO attributed this entire increase solely to the incentive program. For each statement, select the choice that best completes it.

A A potential *alternative cause* for the sales increase could be: 'A recent expansion into a new, high-demand market.' A *necessary assumption* for the CEO's claim to be valid is: 'No new competitors entered the market during this period.'
B A potential *alternative cause* for the sales increase could be: 'An unrelated national economic downturn.' A *necessary assumption* for the CEO's claim to be valid is: 'The incentive program was universally popular among staff.'
C A potential *alternative cause* for the sales increase could be: 'A recent expansion into a new, high-demand market.' A *necessary assumption* for the CEO's claim to be valid is: 'No other significant changes that could impact sales occurred simultaneously.'
D A potential *alternative cause* for the sales increase could be: 'Reduced product pricing due to overstocking.' A *necessary assumption* for the CEO's claim to be valid is: 'Sales staff were previously underperforming.'

✓ Correct Answer: Option C

An alternative cause offers another plausible reason. A necessary assumption eliminates other factors as causes, ensuring the stated cause is the sole or primary driver for the observed effect.

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