The following appeared as part of the business plan of an investment and financial consulting firm.
Studies suggest that an average coffee drinkers consumption of coffee increases with age, from age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola drinkers consumption of cola, however, declines with increasing age. Both of these trends have remained stable for the past 40 years. Given that the number of older adults will significantly increase as the population ages over the next 20 years, it follows that the demand for coffee will increase and the demand for cola will decrease during this period. We should, therefore, consider transferring our investments from Cola Loca to Early Bird Coffee.
Discuss how well reasoned... etc.
In this argument a consulting firm recommends the transfer of investments from Cola Loca to Early Bird Coffee because, during the next 20 years, coffee demand will increase while cola demand will decrease. This prediction is based on the expectation that the number of older adults will significantly increase over the next 20 years, together with statistics, reportedly stable for the past 40 years, indicating that coffee consumption increases with age while cola consumption declines with increasing age. For three reasons, this financial advice may not be sound.
First, the argument assumes that relative supply conditions will remain unchanged over the next twenty years. However, the supply and cost of cola and coffee beans, as well as other costs of doing business as a producer of coffee or cola, may fluctuate greatly over a long time period. These factors may affect comparative prices of coffee and cola, which in turn may affect comparative demand and the value of investments in coffee and cola companies. Without considering other factors that contribute to the value of a coffee or cola company, the firm cannot justify its recommendation.
Secondly, the argument fails to account for the timing of the increase in coffee consumption. Perhaps the population will age dramatically during the next five years, then remain relatively flat over the following 15 years. Or perhaps most of the increase in average age will occur toward the end of the 20-year period. An investor has more opportunity to profit over the short and long term in the first scenario than in the second, assuming the investor can switch investments along the way. If the second scenario reflects the facts, the firms recommendation would be ill-founded.
Finally, the firm unjustifiably relies on the studies that correlate coffee and cola consumption with age. The firm does not provide evidence to confirm the reliability of the studies. Moreover, while the phrase studies suggest may appear to lend credibility to these claims, the phrase is vague enough to actually render the claims worthless, in the absence of any information about them.
In conclusion, the firm should not transfer investments from Cola Loca to Early Bird Coffee on the basis of this argument. To better evaluate the recommendation, we would need more information about the study upon which it relies. We would also need more detailed projections of population trends during the next 20 years.
新目标九年级上 Unit 1 Reading Comprehension
新目标九年级英语复习( Unit 1-5)
新目标九年级上 Unit 1 How do you study for a test
新目标九年级Unit 6 Section A(1a–2c)课件ppt
新目标九年级Unit 11 Section A第一课时
新目标九年级Unit 8 I’ll help clean up the city parks
新目标英语九年级第二单元A
九年级英语期末常错题复习[12套]-新课标
新目标英语九年级Unit 8(附词句讲解)
新目标英语九年级unit 7
人教新目标版九年级《Unit 1 How do you study for a test》ppt课件(一)
英语新目标九年级Unit 12
新目标英语九年级第二单元1
新目标九年级《被动语态(Passive Voice)》专项训练
Unit 14 Have you packed yet(新目标九年级)
新目标九年级Unit 9 Section A(1a-2c)
人教新目标版九年级《Unit 13 Rainy days make me sad》ppt阅读课件
新目标九年级unit 11 selfcheck
新目标九年级Unit 9 When was it invented
新目标九年级Unit 1 Section A(2)
新目标九年级Unit 8 Section A
人教新目标版九年级《Unit 13 Rainy days make me sad》ppt课件
人教新目标版九年级《Unit 15 We’re trying to save the manatees》ppt课件包(含声音素材)
人教新目标版九年级《Unit 14 Have you packed yet》ppt课件
新目标九年级Unit 12
九年级Unit 2 I used to be afraid of the dar(基础知识 作文 完形填空)
九年级上英语Unit 1 基础知识作文完型填空材料
新目标九年级Unit 10 Section A
九年级上Unit 1 How do you study for a test(基础知识作文完型填空材料)
人教新目标版九年级《Unit 2 I used to be afraid of the dark》ppt课件
| 不限 |
| 英语教案 |
| 英语课件 |
| 英语试题 |
| 不限 |
| 不限 |
| 上册 |
| 下册 |
| 不限 |