mikemcgarry wrote:
In anticipation of the coming year, Tecumseh Autos, a national auto manufacturer, is anticipating sales of its vehicles. Tecumseh manufactures compact cars, sedans, minivans, trucks, SUVs, and sports cars. In all categories of vehicles, Tecumseh sets prices so that the profit per vehicle is, on average, about the same. Since the best indicator for sales in each category are the sales last year, Tecumseh’s marketing analysts’ prediction of the three most profitable categories of vehicles in the coming year will be compact cars, minivans, and SUVs respectively.
Tecumseh’s marketing analysts’ prediction relies on which one of the following assumptions?
(A) Across all manufacturers, the most popular cars on the road in America are compact cars, minivans, and SUVs.
(B) The models of Tecumseh’s compact cars to be sold in the upcoming year are identical to or similar to those of last year.
(C) Last year, no other category of Tecumseh’s vehicles generated more profits than SUVs and less than minivans.
(D) The prediction will be refined after an analysis of the sales in the first quarter of this year.
(E) The number of models of compacts cars that Tecumseh produces is greater than the number of models of either minivans or SUVs.
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