SOLUTION: Question: Determine whether the argument is valid or invalid. If valid, name the type of reasoning, and if invalid, determine the error in reasoning. Blue-chip stocks are safe inv

Algebra ->  Probability-and-statistics -> SOLUTION: Question: Determine whether the argument is valid or invalid. If valid, name the type of reasoning, and if invalid, determine the error in reasoning. Blue-chip stocks are safe inv      Log On


   



Question 1200759: Question: Determine whether the argument is valid or invalid. If valid, name the type of reasoning, and if invalid, determine the error in reasoning.
Blue-chip stocks are safe investments.
Stocks that pay a high rate of interest are safe investments.
Therefore, blue-chip stocks pay a high rate of interest.
response: valid; direct reasoning
valid; indirect reasoning
valid; transitive reasoning
invalid; false chain pattern
invalid; fallacy of the inverse

Answer by asinus(45) About Me  (Show Source):
You can put this solution on YOUR website!
The argument is **invalid**. The error in reasoning is the **false chain pattern**.
* **False Chain Pattern:** This occurs when an invalid connection is made between two separate statements.
In this case:
* Premise 1: Blue-chip stocks are safe investments.
* Premise 2: Stocks that pay a high rate of interest are safe investments.
These statements are both true, but they don't logically connect to form the conclusion:
* Conclusion: Blue-chip stocks pay a high rate of interest.
**Explanation:**
* Just because something is a "safe investment" doesn't automatically mean it falls into every category of "safe investment."
* There are various factors that make an investment "safe," and paying a high interest rate is only one of them.
**Key takeaway:** Even if the individual premises are true, the conclusion doesn't necessarily follow from the given information.