QUESTION TEXT: Some advertisers offer certain consumers home computers…
QUESTION TYPE: Most Strongly Supported
FACTS:
- Some advertisers offer certain people computers for free.
- These computers constantly play ads, and they track user behavior.
- Advertisers use the behavior data to serve more relevant ads.
- This precise targeting increases sales.
- These increased sales are how advertisers can afford to offer the computers for free.
ANALYSIS: I simplified the structure of the end of the stimulus, to make it clear that the tracking does increase sales, and that this is what makes the program affordable for advertisers. This deduction is what’s most strongly supported.
___________
- CORRECT. The stimulus says that advertisers have increases sales from these consumers (on average). So, it must be true that at least some consumers spend more money. That’s what “increased sales” means.
If you’re nitpicky, you might have thought “maybe they increased sales of lower priced products, leading to less revenue!” Stop that.
1. This is a most strongly supported question, so there can be edge case exceptions in the reasoning.
2. The stimulus clearly says that the increased sales make the program affordable. Which strongly implies that revenues and profits were up. - This isn’t supported. Advertisers might operate such a program at a loss in the short run in order to conduct research or for a PR effect. e.g. “Brilliant advertising firm makes money from free computers! Hire them for your next campaign!”
- The first part of this is true. The second part of this goes too far. We don’t know that consumers would spend “little if any money”. We just know they would spend less money.
- We don’t know this. The stimulus says that it is the targeting which increases sales. And “did not play continuously” could be a very small reduction, e.g. 99% instead of 100%. That might be too small to matter.
- We have no information to support this. The stimulus implies that information is sent whenever consumers browse the internet. No opt out is mentioned.
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