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Excluding purchases by businesses, the average amount spe

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Excluding purchases by businesses, the average amount spe [#permalink] New post 09 Dec 2017, 16:41
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Excluding purchases by businesses, the average amount spent on a factory-new car has risen 30 percent in the last five years. In the average household budget, the proportion spent on car purchases has remained unchanged in that period. Therefore the average household budget must have increased by 30 percent over the last five years.

Which of the following is an assumption on which the argument relies?

(A)The average number of factory-new cars purchased per household has remained unchanged over the last five years.
(B)The average amount spent per car by businesses buying factory-new cars has risen 30 percent in the last five years.
(C)The proportion of the average household budget spent on all car-related expenses has remained unchanged over the last five years.
(D)The proportion of the average household budget spent on food and housing has remained unchanged over the last five years.
(E)The total amount spent nationwide on factory- new cars has increased by 30 percent over the last five years.
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Re: Excluding purchases by businesses, the average amount spe [#permalink] New post 30 Dec 2017, 02:43
Explanation for A please and why not d
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Re: Excluding purchases by businesses, the average amount spe [#permalink] New post 30 Dec 2017, 15:05
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ankur491 wrote:
Explanation for A please and why not d


D is out of scope. We must have a correlation between the household budget and the purchase of new cars. A is the assumption because the conclusion is true only whether the new cars purchasing per household is stable. I.E the proportion (as mention in the stimulus) is constant.

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Re: Excluding purchases by businesses, the average amount spe   [#permalink] 30 Dec 2017, 15:05
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