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A company is developing a new product, code-named Product Q. The company's leaders have not yet decided which of two plans to implement. Under Plan A, the new product would be released to the public 12 months from now. Under Plan B, it would be released 18 months from now. Those who favor Plan A do so because they have reliable evidence that a competitor is planning to develop a similar product and there would be a significant marketing advantage in releasing the product first. Those who favor Plan B point out that the 12-month development cycle would require such an intense concentration of effort that other important projects not involving Product Q might have to be postponed.
For Greater risk with Plan A, select the undesirable outcome that the passage indicates would be more likely if Plan A were implemented than if Plan B were implemented, and for Greater risk with Plan B, select the undesirable outcome that the passage indicates would be more likely if Plan B were implemented than if Plan A were implemented. Make only two selections, one in each column.
The date on which Product Q would be released to the public would be at least 12 months later than the currently planned date.
The basic design of Product Q would have to be changed during the development process.
Some important projects not involving Product Q would not be completed on their original schedules.
The company would have to charge more to the public for Product Q than if the other plan were implemented.
A competitor would release a similar product before Product Q is released.
| Passage Statement | Analysis & Implications |
| "Under Plan A, the new product would be released to the public 12 months from now" |
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| "Under Plan B, it would be released 18 months from now" |
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| "Those who favor Plan A do so because they have reliable evidence that a competitor is planning to develop a similar product" |
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| "there would be a significant marketing advantage in releasing the product first" |
|
| "the 12-month development cycle would require such an intense concentration of effort that other important projects not involving Product Q might have to be postponed" |
|
For Plan A (12-month):
For Plan B (18-month):
"The date on which Product Q would be released to the public would be at least 12 months later than the currently planned date."
"The basic design of Product Q would have to be changed during the development process."
"Some important projects not involving Product Q would not be completed on their original schedules."
"The company would have to charge more to the public for Product Q than if the other plan were implemented."
"A competitor would release a similar product before Product Q is released."