Reasoning Question with Strange? Answer
I am having trouble with the multiple-choice question below on logical reasoning/argument, since I cannot understand the basis of the given correct answer.
I have written my thoughts and reasoning after the question. I have also stated the given correct answer, but have changed its font colour to white. Could someone kindly be of assistance?
Thank you very much!
41. Electrical goods retailers often offer 'extended warranties' which guarantee free repairs if the product breaks down during the term of the warranty. Salespeople are keen to persuade customers to buy these warranties because they gain substantial commission from them. Customers may also be tempted to buy them, since they ensure that the purchaser will not be faced with huge repair bills. However, surveys by consumer protection agencies show that the average cost of repairs per customer is less than the average cost of a warranty. Anybody buying electrical goods would therefore be well-advised not to buy an extended warranty, as it represents poor value for money.
Which one of the following, if true, would weaken the above argument?
A Salespeople knowingly mislead their customers into purchasing a poor value
B The average cost of repairs is low because for the majority of electrical
purchases the actual cost is zero.
C No extended warranty scheme would be viable for the retailer if the average
cost of repairs exceeded the cost of the warranty.
D In most warranty agreements there are clauses which state that certain kinds
of repair are not covered.
E With or without an extended warranty, customers have statutory rights which
retailers are obliged to observe.
Given correct answer (hidden in white): B
My thoughts: I ruled out C, D, E. I then picked A because I know that my choice must weaken the argument (ie I want to argue that warranties are GOOD).
(This paragraph contains spoilers): However, how would the given correct answer weaken the argument? If anything, it seems to support it because if the average cost of repairs is low, and certainly if the actual cost of repairs for electrical appliances is zero, why would buying a warranty on average be shrewd?