Moderate

Statement: "Company profits doubled after digital transformation."Inference:

Correct answer: A. Technology boosted productivity

  • A. Technology boosted productivity
  • B. Staff was fired
  • C. Marketing failed
  • D. Costs increased

Explanation

The correct inference from the statement 'Company profits doubled after digital transformation' is that 'Technology boosted productivity.' Digital transformations often involve implementing new technologies that streamline operations and increase efficiency, leading to higher productivity and profits. The other options are not aligned with the positive outcome described: 'Staff was fired' suggests a negative action without direct evidence in the statement; 'Marketing failed' contradicts the success indicated by the profit increase; 'Costs increased' would not typically result in doubled profits unless offset by other significant revenue gains, which is not mentioned in the statement.

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Critical thinking examines how conclusions follow from evidence, including claims, assumptions, arguments, inferences and relevant facts. Questions ask you to identify hidden assumptions, distinguish strong from weak evidence, assess cause and effect, recognise common reasoning errors, and decide which statement strengthens or weakens an argument.

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