The Fallacy of Composition

The Fallacy of Composition

"When we look at final demand for this industry we do not see those underlying factors declining at all. We see them increasing around 3% in 2015. Those are the most fundamental elements in the electrical industry."

One thing that the electrical industry is not guilty of (among lots of other things), is the fallacy of composition. Basically this fallacy says that what is true of the part is also true of the whole.

Take for example what has been happening in oil exploration areas. Over the past few years, distributors serving those areas have experienced large increases in their sales compared with other geographic areas. Other areas have not even come close to those increases. Clearly the

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