Critical thinking

ASSIGNMENT I
─
ACCOUNTING AND FINANCE
DEPARTMENT
Group Name
1.DAGIM NEGA
2.IBRAHIM
3.MAME
Objective:
4.YISAK
To enhance critical thinking skills by analyzing, evaluating, and synthesizing

5.KEMAL
information to develop well-reasoned conclusions or arguments. This project
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encourages students to approach problems methodically and consider multiple

perspectives.

Scope:
The critical thinking assignment involves engaging with a real-world or hypothetical
scenario, analyzing key aspects, and applying logical reasoning to propose solutions
or arguments. The focus is on developing analytical skills, creative problem-solving,
and evidence-based reasoning.

PART I.

1. Define the following terms with an appropriate example.

1. Arguments:
An argument is a set of statements where some statements (called premises) are
offered as reasons to support another statement (called the conclusion).
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○ Example:
■ Premise 1: All humans are mortal.
■ Premise 2: Socrates is a human.
■ Conclusion: Therefore, Socrates is mortal.
2. Statements:
A statement is a declarative sentence that is either true or false but not both. It
forms the building block of arguments.
○ Example:
■ "The sky is blue" is a statement because it can be evaluated as true or
false.
■ "What time is it?" is not a statement because it is a question, not a
declarative sentence.
3. Premises:
Premises are the statements in an argument that provide evidence or reasons to
support the conclusion.
○ Example:
■ Premise 1: Regular exercise improves health.
■ Premise 2: John exercises regularly.
■ Conclusion: Therefore, John is healthy.
■ In this case, the two premises provide the basis for the conclusion.
4. Conclusion:
The conclusion is the statement in an argument that the premises are intended to
support or prove. It is the main point or claim derived from the reasoning.
○ Example:
■ Premise 1: All dogs are mammals.
■ Premise 2: Rex is a dog.
■ Conclusion: Rex is a mammal.

2. Why are arguments only made up of statements?

Arguments are composed of statements because the purpose of an argument is to present
a set of premises (reasons) to support or refute a conclusion. Statements are declarative
sentences that express propositions, which can be either true or false. This makes them
suitable for reasoning and logical analysis, which are the foundation of arguments.
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In contrast, other types of sentences, such as questions, commands, or exclamations, do

not have a truth value and therefore cannot serve as premises or conclusions in an
argument.

Example
Consider the following argument:

1. Premise 1: All humans are mortal.

2. Premise 2: Socrates is a human.
3. Conclusion: Therefore, Socrates is mortal.

Each component of the argument is a statement because it can be evaluated as true or

false:

● "All humans are mortal" is a statement (true in general).

● "Socrates is a human" is a statement (true if Socrates is indeed human).
● "Socrates is mortal" is a statement (true if the premises are correct).

Why not other sentence types?

● Questions: "Is Socrates mortal?" is a question. It does not provide any claim that
can be evaluated as true or false.
● Commands: "Study philosophy!" is a command. It does not express a truth value.
● Exclamations: "Wow, Socrates is amazing!" is an exclamation and conveys
emotion, not a factual claim.

Importance in Arguments
By restricting arguments to statements, we ensure that reasoning is logical and
conclusions can be critically evaluated. The truth or falsity of premises determines the
validity and soundness of an argument, which is central to critical thinking and reasoning.

3. What does an argument mean to be good? How can it be good?

A good argument is one that successfully fulfills its purpose of providing strong
support for its conclusion. In logic and critical thinking, a good argument is
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evaluated based on two main criteria: validity and soundness (for deductive
arguments) or strength and cogency (for inductive arguments).

For Deductive Arguments

A deductive argument is designed so that if the premises are true, the conclusion
must also be true.

1. Validity:
A deductive argument is valid if the conclusion logically follows from the
premises. Validity is about the structure of the argument, not the truth of the
premises.
Example:
○ Premise 1: All cats are mammals.
○ Premise 2: Garfield is a cat.
○ Conclusion: Therefore, Garfield is a mammal.
This argument is valid because if the premises are true, the conclusion
must also be true.
2. Soundness:
A deductive argument is sound if it is valid and all its premises are actually
true.
Example:
○ Premise 1: All humans are mortal.
○ Premise 2: Socrates is a human.
○ Conclusion: Therefore, Socrates is mortal.
This argument is both valid and sound because the premises and
conclusion are true.

For Inductive Arguments

An inductive argument aims to show that its conclusion is likely or probable

given the premises.
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1. Strength:
An inductive argument is strong if the conclusion is highly probable based
on the premises.
Example:
○ Premise 1: Every swan I have seen so far is white.
○ Conclusion: Therefore, all swans are white.
This argument is strong but not guaranteed to be true because it relies
on patterns or observations.
2. Cogency:
An inductive argument is cogent if it is strong and the premises are true.
Example:
○ Premise 1: The sun has risen every day in recorded history.
○ Conclusion: Therefore, the sun will rise tomorrow.
This argument is cogent because the premises are true and strongly
support the conclusion.

Key Qualities of a Good Argument

1. Clear and Unambiguous:
The argument should avoid vague or ambiguous terms and clearly present the
premises and conclusion.
2. Relevant Premises:
The premises should directly support the conclusion.
3. True Premises:
The premises must be factually accurate or at least well-supported by evidence.
4. Logical Structure:
The reasoning in the argument must follow the rules of logic, ensuring no fallacies
are present.

How Can an Argument Be Made Good?

1. Ensure Logical Validity or Strength:
Check the structure of the argument to ensure it is valid (for deductive arguments)
or strong (for inductive arguments).
2. Verify the Truth of Premises:
Support premises with evidence, data, or reasoning.
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3. Avoid Logical Fallacies:

Common fallacies like ad hominem, strawman, or false dichotomy weaken
arguments.
4. Anticipate Objections:
Address potential counterarguments to make the argument more robust.

4. List and illustrate the importance of Critical thinking.

Critical thinking is the ability to analyze, evaluate, and interpret information logically to
make well-reasoned decisions. It is a foundational skill in many areas of life, from
education and work to personal decision-making and civic engagement. Below is a list of
its importance, along with illustrations for each point.

1. Improves Decision-Making

Critical thinking enables individuals to weigh pros and cons, assess evidence, and
make informed choices.
Illustration: A manager choosing between two suppliers considers factors like
cost, quality, and reliability, rather than relying on personal bias or intuition.

2. Enhances Problem-Solving Skills

It helps break down complex problems into manageable parts, leading to effective
solutions.
Illustration: An engineer troubleshooting a system failure systematically identifies
the root cause and implements a targeted fix instead of guessing.

3. Promotes Better Communication

By analyzing arguments and evidence, critical thinkers can express ideas

clearly and persuasively.
Illustration: During a debate, a student uses logical reasoning and credible
evidence to refute counterarguments effectively.

4. Encourages Open-Mindedness

Critical thinkers are willing to consider different perspectives and revise

their views when warranted.
Illustration: A scientist adapts their hypothesis after reviewing new data
that contradicts their initial findings.
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5. Helps Identify Biases and Fallacies

Critical thinking uncovers biases in reasoning and protects against being

misled by faulty arguments.
Illustration: A consumer avoids falling for a misleading advertisement by
recognizing logical fallacies, such as false cause or appeal to emotion.

6. Supports Lifelong Learning

It fosters curiosity and a habit of questioning, which are essential for

continuous personal and professional growth.
Illustration: A lifelong learner critically evaluates online courses, choosing
ones that align with their career goals and offer practical knowledge.

7. Strengthens Ethical Reasoning

Critical thinking aids in making decisions that align with ethical principles
and societal values.
Illustration: A policymaker considers the long-term impacts of a new law,
ensuring it benefits the majority without harming vulnerable groups.

8. Prepares for Uncertainty

In a rapidly changing world, critical thinking equips individuals to adapt and

make sound judgments in uncertain situations.
Illustration: A business owner navigates a financial crisis by analyzing
market trends, identifying risks, and exploring alternative strategies.

9. Enhances Creativity
Critical thinking complements creativity by providing a structured approach to exploring
and testing innovative ideas.
Illustration: An entrepreneur develops a unique product by critically analyzing customer
feedback and market gaps.

10. Fosters Active Citizenship

Critical thinkers can engage in democratic processes by evaluating policies,

questioning authority, and making informed votes.
Illustration: A voter researches the platforms of candidates, fact-checks
claims, and participates in informed discussions before an election.
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5. Illustrate thinking and types of thinking with appropriate

example.
Thinking is the process of using the mind to reason, understand, make decisions,
and solve problems. It encompasses various mental activities and approaches.
Below, we define thinking and explain its major types, accompanied by examples
for clarity.

Types of Thinking

1. Critical Thinking
○ Definition: The ability to analyze, evaluate, and form judgments
logically and objectively.
○ Example: A journalist fact-checks claims in a news story, evaluates
sources' credibility, and identifies biases before publishing an article.
2. Creative Thinking
○ Definition: The ability to generate new and original ideas, solutions,
or perspectives.
○ Example: An architect designs a sustainable house using recycled
materials in a way that maximizes both aesthetics and functionality.

3. Analytical Thinking

● Definition: Breaking down complex information or problems into smaller

parts to understand or solve them.
● Example: A data analyst examines customer purchase patterns to determine
the most popular product categories.

4. Logical Thinking

● Definition: Reasoning in a structured and systematic manner to arrive at

valid conclusions.
● Example: A programmer identifies and fixes a bug in software by following
a step-by-step debugging process.

5. Convergent Thinking

○ Definition: Focusing on finding a single, correct solution to a

problem.
○ Example: A student solving a math equation using a known formula
to arrive at the correct answer.
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6. Divergent Thinking
○ Definition: Exploring multiple possible solutions or ideas for a given
problem.
○ Example: A marketing team brainstorming various slogans for a new
product campaign.
7. Reflective Thinking
○ Definition: Reviewing past experiences or actions to gain insight and
improve future outcomes.
○ Example: A teacher evaluates their teaching methods after a class to
identify what worked well and what needs improvement.
8. Lateral Thinking
○ Definition: Approaching problems from unconventional angles to
find innovative solutions.
○ Example: Instead of hiring more customer service agents, a company
implements an AI chatbot to handle basic queries.
9. Abstract Thinking
○ Definition: Considering concepts, ideas, or patterns that are not
directly tied to physical objects or experiences.
○ Example: A philosopher contemplates the concept of justice and how
it applies in various cultural contexts.
10.Concrete Thinking
● Definition: Focusing on tangible and specific details rather than
abstract ideas.
● Example: A construction worker interprets blueprints literally to build
a structure according to precise specifications.

Illustration of Thinking in Action

Scenario: A company is facing declining sales.

1. Critical Thinking: Analyze market trends and customer feedback to identify the
cause.
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2. Creative Thinking: Brainstorm innovative marketing strategies or redesign

the product.
3. Analytical Thinking: Break down sales data by region, demographics, and
time period to pinpoint the problem.
4. Logical Thinking: Implement a new advertising campaign based on the data
insights.
5. Convergent Thinking: Decide on a single course of action to address the
issue.
6. Divergent Thinking: Explore multiple approaches, such as online
promotions, partnerships, or loyalty programs.
7. Reflective Thinking: Review past strategies to understand why they failed
or succeeded.
8. Lateral Thinking: Consider unconventional options, like targeting a new
audience or selling through non-traditional platforms.

6. Explain the benefits and barriers of critical thinking.

Benefits of Critical Thinking

1. Improved Decision-Making
○ Explanation: Critical thinking helps in evaluating options logically and choosing
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the best course of action.

○ Example: A business leader analyzes market trends before launching a new
product, reducing the risk of failure.
2. Enhanced Problem-Solving Skills
○ Explanation: It breaks down complex problems into manageable components,
making solutions more accessible.
○ Example: A software engineer diagnoses a system error by systematically
checking each component.
3. Better Communication
○ Explanation: Critical thinkers can articulate ideas clearly and back them with
evidence, enhancing persuasion.
○ Example: A lawyer presents a strong argument by referencing case law and
credible evidence.
4. Reduced Bias
○ Explanation: Critical thinking helps identify and minimize personal or external
biases.
○ Example: A hiring manager uses structured interviews and objective criteria to
avoid favoritism.
5. Encourages Open-Mindedness
○ Explanation: Critical thinkers are willing to consider alternative viewpoints and
revise their beliefs when warranted.
○ Example: A researcher updates their hypothesis after encountering contradictory
evidence.
6. Increased Creativity
○ Explanation: Critical thinking complements creative thinking by evaluating the
feasibility and impact of ideas.
○ Example: An artist critically evaluates their work and seeks innovative ways to
express a concept.
7. Better Academic Performance
○ Explanation: It enhances analytical and reasoning skills, essential for academic
success.
○ Example: A student critically analyzes primary and secondary sources when
writing a research paper.
8. Greater Self-Awareness
○ Explanation: Critical thinking fosters reflection and self-evaluation, leading to
personal growth.
○ Example: An individual identifies and works on their weaknesses after assessing
their behavior in a conflict.

Barriers to Critical Thinking

1. Cognitive Biases
○ Explanation: Prejudices, stereotypes, and personal biases can cloud judgment.
○ Example: Confirmation bias leads someone to only seek information that
supports their pre-existing beliefs.
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2. Emotional Interference
○ Explanation: Strong emotions, such as fear or anger, can impair rational thinking.
○ Example: A person may make impulsive decisions during an argument instead of
evaluating the facts calmly.
3. Lack of Knowledge
○ Explanation: Insufficient information or understanding limits the ability to think
critically.
○ Example: A voter may struggle to evaluate policies without knowing the broader
context or implications.
4. Social Pressure
○ Explanation: Peer pressure or societal norms can discourage independent
thinking.
○ Example: A student might agree with the majority opinion in a group discussion,
even if they have doubts.
5. Overconfidence
○ Explanation: Assuming one's reasoning is infallible can prevent critical
examination of ideas.
○ Example: A manager dismisses feedback from employees, believing their
decisions are always correct.
6. Time Constraints
○ Explanation: Limited time can lead to rushed decisions without adequate
analysis.
○ Example: A journalist might publish a story without thorough fact-checking due
to a tight deadline.
7. Complexity of Issues
○ Explanation: Problems with many variables can overwhelm individuals,
hindering critical analysis.
○ Example: A policymaker struggles to address climate change due to its
multifaceted nature.
8. Resistance to Change
○ Explanation: People may resist adopting new ideas or perspectives, even when
evidence supports them.
○ Example: A business clings to outdated practices despite declining performance.

PART II. Identify the premises, conclusions and indicators for the

Following arguments.
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1.You should avoid any form of cheating on exams because cheating on exams is punishable
by the senate legislation of the university.

Premise:

○ "Cheating on exams is punishable by the senate legislation of the

university."
○ This provides the reason or evidence supporting the claim.

Conclusion:

○ "You should avoid any form of cheating on exams."

○ This is the main claim or recommendation being supported.

Indicator:

○ "Because" is the indicator.

○ It signals that what follows ("cheating on exams is punishable by the senate
legislation of the university") is the reason for the conclusion.

2.Socialized medicine is not recommended because it would result in a reduction in the overall
quality of medical care available to the average citizen. In addition, it might very well bankrupt
the federal treasury. This is the whole case against socialized medicine in a nutshell.

Premises:

1. Socialized medicine would result in a reduction in the overall quality of medical care
available to the average citizen.
2. Socialized medicine might very well bankrupt the federal treasury.

Conclusion:
● Socialized medicine is not recommended.

Indicators:

● "because" introduces the reasons (premises) for not recommending socialized medicine.
● "In addition" connects the second premise to the first premise.
● "This is the whole case against" indicates that the premises lead to the conclusion.

3. All Ethiopian university students are brilliant. Owing to Adama university students are
Ethiopian university students, they are brilliant.

Premises:
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● All Ethiopian university students are brilliant.

● Adama university students are Ethiopian university students.

Conclusion:

● Therefore, Adama university students are brilliant.

Indicators:

● Premise indicators: "All Ethiopian university students are brilliant" and "Owing to
Adama university students are Ethiopian university students" both provide
premises.
● Conclusion indicator: "Therefore" is the indicator leading to the conclusion.

4. Rule of law is an important principle of democratic country. As indicated by the best

experience of rule of law in Britain, consequently, Britain is democratic country.

● Premise: "Rule of law is an important principle of democratic country."

○ This is the statement providing support or reasoning for the conclusion.
● Conclusion: "Consequently, Britain is a democratic country."
○ This is the statement that follows from the premise, the claim the argument
is trying to establish.
● Indicators:
○ "As indicated by": This suggests the evidence from Britain is being
presented to support the argument.
○ "Consequently": This word shows the connection between the premise
and the conclusion, indicating that the premise leads to the conclusion.

So, the argument structure is:

● Premise: Rule of law is an important principle of democratic countries.

● Supporting evidence: Best experience of rule of law in Britain.
● Conclusion: Britain is a democratic country.