A design flaw in deep-sea research submarines has led to the failures of many research projects. These projects are insured against such losses; as a result, claims against policies underwriting deep-sea research projects have increased greatly. Insurance premiums for these projects have been raised in response to these higher claims. These cost increases have led research institutions to try to accomplish more research with fewer research projects.

Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of conducting deep-sea research will continue to rise?

A. Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high.

B. When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy.

C. The greater the research demands placed on a given project, the more likely that project will fail.

D. Most research institutions undertake so few projects that no economies of scale can be realized.

E. Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable.
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-Aravind Chembeti

picked A but after seeing OA is C i get how it is right..

A) Is a justification of high insurance premiums now instead of a rationale behind why they will continue to rise. so irrelevant. wrong
B) Irrelevant. wrong
C) The increased likelihood that a project will fail based on greater research demands placed on them means that a larger number of projects will fail leading to higher insurance premiums for insurance against failures. So correct.
D) Irrelevant. wrong
E) Not related to why insurance premiums may be higher in the future. Just tells us something about research projects which is true now. wrong

Good question by the way..

No. of researches increases as no. of failure cases increases (assuming those reseraches continue till they accomplish their goal)
As no. of researches increases, obviously thier corresponding cost (associated with insurance) also increases.

Hope this is clear.
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-Aravind Chembeti

after going through tuanquang269 reply, I now see what i missed during evaluating options - cost of project. so C is a clear winner

+C

It is a circular causal effect type

Failure(Cause)->> High $ of insurance ->> more demand ->> more failure

Correct me if m wrong in pattern recognition
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The proof of understanding is the ability to explain it.

Wow i solved the same question a few hours ago but with different wordings..
Same question wearing a different disguise.Even the answer options are more or less same.

A recent spate of launching and operating mishaps with television satellites led to a corresponding surge in claims against companies underwriting satellite insurance. As a result, insurance premiums shot up, making satellites more expensive to launch and operate. This, in turn, has added to the pressure to squeeze more performance out of currently operating satellites.

Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of television satellites will continue to increase?

A. Since the risk to insurers of satellites is spread over relatively few units, insurance premiums are necessarily
very high.
B. When satellites reach orbit and then fail, the causes of failure are generally impossible to pinpoint with
confidence.
C. The greater the performance demands placed on satellites, the more frequently those satellites break down.
D. Most satellites are produced in such small numbers that no economies of scale can be realized.
E. Since many satellites are built by unwieldy international consortia, inefficiencies are inevitable.


It was the same question
As usual answer is here also

Thanks for sharing this, biswan02!
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Eli Meyer
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