What Type of Reasoning Is Involved in the Following Argument

question 15

Multiple Choice

What type of reasoning is involved in the following argument? "My first Toyota was reliable. My second Toyota was also reliable. In my opinion, Toyotas are very reliable cars."

• A) Correlation
• B) Causation
• C) Analogy
• D) Sign
• E) Generalization

---

Definitions:

Z Score Model

A statistical model that predicts the probability of a company going bankrupt based on several financial ratios derived from the company's financial statements.

Financial Ratios

Quantitative metrics derived from financial statement analysis used by investors and analysts to evaluate a company's financial health and performance.

Working Capital

The discrepancy between an entity's immediate assets and its short-term obligations, reflecting its liquidity and effectiveness in day-to-day operations.

Cash Flows

The overall volume of cash transactions into and from a corporation, significantly affecting its liquidity status.