Known as one of the most commonly used arguments in legal reasoning in every legal system, legal analogy simply means finding the solution to a problem by reference to another similar problem and its solution. An analogy consists of an observed similarity between two phenomena, namely source and target. Analogical reasoning is an extension of the source to the target. Furthermore, it is an extension of a legal rule from one case to another due to a similarity which is regarded by the judge to be material.

The correct answer is E.