The following appeared in a newsletter offering advice to investors. "Over 80 percent of the respondents to a recent survey indicated a desire to reduce their intake of foods containing fats and cholesterol, and today low-fat products abound in many food

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The following appeared in a newsletter offering advice to investors.

"Over 80 percent of the respondents to a recent survey indicated a desire to reduce their intake of foods containing fats and cholesterol, and today low-fat products abound in many food stores. Since many of the food products currently marketed by Old Dairy Industries are high in fat and cholesterol, the company's sales are likely to diminish greatly and their profits will no doubt decrease. We therefore advise Old Dairy stockholders to sell their shares and other investors not to purchase stock in this company." - GRE Argument 13

This excerpt from an investment newsletter cites a recent study in which 80% of respondents indicated a desire to reduce their consumption of high-fat and high-cholesterol foods, then points out that food stores are well-stocked with low-fat food products. Based on this evidence the newsletter predicts a significant decline in sales and profits for Old Dairy (OD), a producer of dairy products high in fat and cholesterol, and advises investors not to own OD stock. I find this advice specious, on several grounds.

First, the excerpt fails to assure me that the survey results accurately reflec...

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2011-12-21 endlessLearning 63 view
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Score: 5.0 out of 6
Category: Very Good Excellent
No. of Grammatical Errors: 0 2
No. of Spelling Errors: 0 2
No. of Sentences: 17 15
No. of Words: 472 350
No. of Characters: 2446 1500
No. of Different Words: 232 200
Fourth Root of Number of Words: 4.661 4.7
Average Word Length: 5.182 4.6
Word Length SD: 2.733 2.4
No. of Words greater than 5 chars: 202 100
No. of Words greater than 6 chars: 150 80
No. of Words greater than 7 chars: 98 40
No. of Words greater than 8 chars: 53 20
Use of Passive Voice (%): 0 0
Avg. Sentence Length: 27.765 21.0
Sentence Length SD: 16.955 7.5
Use of Discourse Markers (%): 0.647 0.12
Sentence-Text Coherence: 0.353 0.35
Sentence-Para Coherence: 0.588 0.50
Sentence-Sentence Coherence: 0.092 0.07
Number of Paragraphs: 5 5