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# A design flaw in deep-sea research submarines has led to the

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A design flaw in deep-sea research submarines has led to the [#permalink]  26 Feb 2012, 06:11
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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.
[Reveal] Spoiler: OA

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Re: A design flaw in deep-sea research submarines has [#permalink]  26 Feb 2012, 10:28
I dont understand how C can be the answer ..Actually none of the options are convincing !! Its no where said and can be inferred that it is the demand which is causing the increase in the errors .Can anyone explain pls ..
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Re: A design flaw in deep-sea research submarines has [#permalink]  26 Feb 2012, 17:32
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..
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Re: A design flaw in deep-sea research submarines has [#permalink]  27 Feb 2012, 00:21
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Here is my answer :D

Chembeti wrote:
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. => this only said about the value of insurance, NOT talk anything about the cost of failed projects, which leads to increase costs

B. When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy. => this choice does not insist about the cost as well as the factors that increase cost, so irrelevant

C. The greater the research demands placed on a given project, the more likely that project will fail. => when the research demands increase, the percentage of failing projects is high => more cost (= implementing projects cost + insurance cost)

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

E. Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable. => irrelevant

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Re: A design flaw in deep-sea research submarines has [#permalink]  27 Feb 2012, 00:58
saikarthikreddy wrote:
I dont understand how C can be the answer ..Actually none of the options are convincing !! Its no where said and can be inferred that it is the demand which is causing the increase in the errors .Can anyone explain pls ..

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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Re: A design flaw in deep-sea research submarines has [#permalink]  28 Feb 2012, 21:34
Chembeti wrote:
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?

took me 2:34 to solve, but struggled between A and C. here's my take on it.

Stimulus given above is a fact set with conclusion in the question stem : cost of conducting deep sea research will continue to rise.

fact 1 : design flaw led to failure in many research projects.
fact 2 : claims against policies underwriting deep sea research have increased.
fact 3 : premiums have been raised in response
sub conclusion : these increased premiums have led to more research in fewer projects.

so correct answer could either show increased failure rate of project having more research OR will show that insurance premium will rise based on amount of work involved in a project.

A. Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high. could be kept as a contender.

B. When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy. this does not have any impact on cost of premiums. hence out of scope

C. The greater the research demands placed on a given project, the more likely that project will fail. this leads to further increase in insurance premium due to increased failure rate and hence greater cost in conducting research. Correct answer

D. Most research institutions undertake so few projects that no economies of scale can be realized.economies of scales on undertaking research has no role in premiums paid for individual project. hence out of scope

E. Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable.[color=#FF0000]out of scope[/color]

finally out of A and C, I choose C because it impacts conclusion much more directly. Though not very much convinced
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Re: A design flaw in deep-sea research submarines has [#permalink]  28 Feb 2012, 21:38
after going through tuanquang269 reply, I now see what i missed during evaluating options - cost of project. so C is a clear winner
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Re: A design flaw in deep-sea research submarines has [#permalink]  29 Feb 2012, 16:16
Close calls between statements A and C. finally I chose C

A. Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high.-- Portrays the same reason as posted in the argument.
C. The greater the research demands placed on a given project, the more likely that project will fail. Correct. the original argument ends at a result that there will be greater research outcome expectations on lesser number of projects. this sentence adds the further fact that increase in research demands would cause even higher number of failures.
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Re: A design flaw in deep-sea research submarines has [#permalink]  07 Mar 2012, 00:43
+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 _________________ The proof of understanding is the ability to explain it. Forum Moderator Status: mission completed! Joined: 02 Jul 2009 Posts: 1426 GPA: 3.77 Followers: 176 Kudos [?]: 709 [0], given: 620 Re: A design flaw in deep-sea research submarines has [#permalink] 07 Mar 2012, 03:59 Hi all, ans is C, to strengthen an argument you must either strengthen the assumption or fill up the gap between the assumption and a conclusion. Argument's conslusion is: "the cost of conducting deep-sea research will continue to rise" you must support it. The assumption "The greater the research demands placed on a given project, the more likely that project will fail" in this case supports the conslusion, others do not. Here is a logical chain guys, bad design->failure-> failures are insured-> rise in insurance premiums->increased costs->try to accomplish more research with fewer research projects. _________________ Audaces fortuna juvat! GMAT Club Premium Membership - big benefits and savings Intern Joined: 09 Feb 2012 Posts: 14 Concentration: Strategy, General Management GMAT 1: 640 Q44 V34 GPA: 3.8 Followers: 0 Kudos [?]: 2 [1] , given: 2 Re: A design flaw in deep-sea research submarines has [#permalink] 07 Mar 2012, 12:33 1 This post received KUDOS 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 [Reveal] Spoiler: C here also Intern Joined: 16 Jan 2012 Posts: 7 WE: Information Technology (Computer Software) Followers: 0 Kudos [?]: 6 [1] , given: 58 Re: A design flaw in deep-sea research submarines has led to the [#permalink] 21 Aug 2012, 08:05 1 This post received KUDOS The conclusion in this problem is not contained within the stimulus itself, but rather in the question stem. The conclusion is that the cost of deep-sea research projects will rise in the future. The stimulus, therefore, provides the evidence, explaining that mechanical failures have increased the number of failed research projects and thus increased insurance claims by researchers, which has increased premiums for policies on these types of projects. Higher premiums make projects more expensive, causing institutions to increase their expectations of each individual project. If (C) is true, then the greater demands on projects will cause more of those projects to fail, thus pushing the cost of these projects higher still. (C) is the correct answer. Choice (A) explains why one particular cost, insurance, is high, but nothing in the stimulus indicates that these costs will continue to rise. The impossibility to determine why projects fail has nothing to do with an expectation of continually rising costs. Choice (B) is, therefore, beyond the scope. Choice (D) describes one source of high costs in research projects, but there's no reason to think it will lead to continually rising costs. Choice (E) explains that projects are often inefficient (and, therefore, more expensive than they should be) but we have no reason to believe that they will grow increasingly inefficient (so we have no reason to think that costs will continue to rise). Source of Explanation: Kaplan Free Question of the Day Kaplan GMAT Instructor Joined: 25 Aug 2009 Posts: 644 Location: Cambridge, MA Followers: 78 Kudos [?]: 224 [2] , given: 2 Re: A design flaw in deep-sea research submarines has led to the [#permalink] 21 Aug 2012, 13:49 2 This post received KUDOS Expert's post biswan02 wrote: The conclusion in this problem is not contained within the stimulus itself, but rather in the question stem. The conclusion is that the cost of deep-sea research projects will rise in the future. The stimulus, therefore, provides the evidence, explaining that mechanical failures have increased the number of failed research projects and thus increased insurance claims by researchers, which has increased premiums for policies on these types of projects. Higher premiums make projects more expensive, causing institutions to increase their expectations of each individual project. If (C) is true, then the greater demands on projects will cause more of those projects to fail, thus pushing the cost of these projects higher still. (C) is the correct answer. Choice (A) explains why one particular cost, insurance, is high, but nothing in the stimulus indicates that these costs will continue to rise. The impossibility to determine why projects fail has nothing to do with an expectation of continually rising costs. Choice (B) is, therefore, beyond the scope. Choice (D) describes one source of high costs in research projects, but there's no reason to think it will lead to continually rising costs. Choice (E) explains that projects are often inefficient (and, therefore, more expensive than they should be) but we have no reason to believe that they will grow increasingly inefficient (so we have no reason to think that costs will continue to rise). Source of Explanation: Kaplan Free Question of the Day Thanks for sharing this, biswan02! _________________ Eli Meyer Kaplan Teacher http://www.kaptest.com/GMAT Prepare with Kaplan and save$150 on a course!

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Re: A design flaw in deep-sea research submarines has led to the [#permalink]  25 Jan 2014, 23:04
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Re: A design flaw in deep-sea research submarines has led to the [#permalink]  25 Jan 2014, 23:08
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biswan02 wrote:
The conclusion in this problem is not contained within the stimulus itself, but rather in the question stem. The conclusion is that the cost of deep-sea research projects will rise in the future. The stimulus, therefore, provides the evidence, explaining that mechanical failures have increased the number of failed research projects and thus increased insurance claims by researchers, which has increased premiums for policies on these types of projects. Higher premiums make projects more expensive, causing institutions to increase their expectations of each individual project. If (C) is true, then the greater demands on projects will cause more of those projects to fail, thus pushing the cost of these projects higher still. (C) is the correct answer.

Choice (A) explains why one particular cost, insurance, is high, but nothing in the stimulus indicates that these costs will continue to rise.

The impossibility to determine why projects fail has nothing to do with an expectation of continually rising costs. Choice (B) is, therefore, beyond the scope.

Choice (D) describes one source of high costs in research projects, but there's no reason to think it will lead to continually rising costs.

Choice (E) explains that projects are often inefficient (and, therefore, more expensive than they should be) but we have no reason to believe that they will grow increasingly inefficient (so we have no reason to think that costs will continue to rise).

Source of Explanation: Kaplan Free Question of the Day

Nice explanation. But I have a doubt here.

As the rising cost is because of "A design flaw in deep-sea research submarines", if we can identify the flaw, the research projects can succeed. In that case, as there are no further claims, the premiums of the insurance cover decreases and subsequently the cost of the research projects can be reduced.

That is the reason why I marked Option B) When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy.

if we cannot identify the flaw with accuracy then the actual problem will never be rectified and the cycle repeats.

Can you please clarify?
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Re: A design flaw in deep-sea research submarines has led to the [#permalink]  26 Jan 2014, 11:15
kinjiGC

the cost increases due to more insurance cost......
every time there is a failure due to insurance covered design flaw.... cost increases....
if it is not possible to identify reason of failure and therefore cannot attribute to insurance covered failure.....cost of insurance and hence overall cost of project will not increase....

hence, correct answer "c"......
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Re: A design flaw in deep-sea research submarines has led to the [#permalink]  28 Jun 2015, 02:11
Hello from the GMAT Club VerbalBot!

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Re: A design flaw in deep-sea research submarines has led to the   [#permalink] 28 Jun 2015, 02:11
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# A design flaw in deep-sea research submarines has led to the

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