Logic Breakdown

Passage Summary: Whenever a company loses a big lawsuit, its stock price tanks. Cotoy's stock tanked today while they were in a lawsuit, so they must have lost.

Conclusion: An unfavorable judgment was likely announced against Cotoy today.

Reasoning: Losing a product-liability lawsuit causes a company's stock to drop. Since Cotoy is in such a lawsuit and its stock dropped today, the loss must have occurred.

Analysis: This argument is a textbook example of the 'Affirming the Consequent' fallacy. It assumes that because the result (falling stock) occurred, the specific cause mentioned (losing the lawsuit) must be the reason. In the real world, stocks fall for a million reasons—bad earnings, a market crash, or even a CEO's controversial tweet. To find the parallel, look for an answer choice that takes a 'If A, then B' rule, observes that 'B' happened, and incorrectly concludes that 'A' must have happened.

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17.

Which one of the following contains flawed reasoning that most closely parallels that in the argument above?

Correct Answer
D
D matches the form: If an entering student wins the fellowship, then they receive $10,000. Eula received $10,000, so she must have won the fellowship. That’s affirming the consequent, just like inferring a lawsuit loss from the stock drop.
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