Ally's reasoning is incorrect because she double-counts the stickers she gives away.
Ally only has 12/25 of her original collection of stickers left, not 3/5.
.When she gives away 1/5 of her stickers to her sister, she is left with 4/5 of her original collection. However, when she then gives away 1/5 of the remaining stickers to her cousin, she is giving away 1/5 of 4/5 of her original collection, not 1/5 of the entire collection.
Therefore, the correct answer should be calculated as follows:
Start with the original number of stickers: x
Give away 1/5 to the sister: x - 1/5x = 4/5x
Give away 1/5 of the remaining stickers to the cousin: 4/5x - 1/5(4/5x) = 4/5x - 4/25x = 12/25x
Calculate the proportion of stickers Ally has left: 12/25*x / x
= 12/25
Therefore, Ally only has 12/25 of her original collection of stickers left, not 3/5.