Information and IdeasMediumWeakening a claim with streaming data
Information and Ideas practice question
Source of new paid subscriptions, Yearwise Audio
Source | Share of new paid subscriptions
Converted from free tier | 71%
Direct paid signup | 22%
Gift or promotion | 7%
A rival executive claims the company's free tier mainly cannibalizes would-be paying customers. ____
Which choice most effectively uses data from the table to weaken the executive's claim?
- A. Listeners who joined through the free tier accounted for 71 percent of this year's new paid subscriptions.Correct
- B. The service added paid subscribers in each quarter shown.
- C. Total listening hours rose 12 percent over the year.
- D. The free tier's catalog is smaller than the paid tier's.
Answer: A. Listeners who joined through the free tier accounted for 71 percent of this year's new paid subscriptions.
The claim is that the free tier cannibalizes paid signups; free-tier users supplying 71% of new paid subscriptions shows it feeding, not eating, the paid business.
Why the other answers are wrong
- B. The service added paid subscribers in each quarter shown.
- Subscriber growth alone does not trace where subscribers came from.
- C. Total listening hours rose 12 percent over the year.
- Listening hours do not connect the free tier to paid conversion.
- D. The free tier's catalog is smaller than the paid tier's.
- Catalog size describes the product, not conversion behavior.
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