Find all School-related info fast with the new School-Specific MBA Forum

It is currently 20 Sep 2014, 18:38

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A recent spate of launching and operating mishaps with

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 10 Mar 2008
Posts: 376
Followers: 3

Kudos [?]: 52 [1] , given: 0

GMAT Tests User
A recent spate of launching and operating mishaps with [#permalink] New post 09 Jul 2008, 19:57
1
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

77% (02:33) correct 23% (02:55) wrong based on 280 sessions
Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 32
Page: 127
Difficulty:


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.
[Reveal] Spoiler: OA

Last edited by Narenn on 17 Oct 2013, 02:08, edited 1 time in total.
Slight Edit
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesVeritas Prep GMAT Discount Codes
2 KUDOS received
GMAT Instructor
avatar
Joined: 24 Jun 2008
Posts: 967
Location: Toronto
Followers: 256

Kudos [?]: 681 [2] , given: 3

GMAT Tests User
Re: CR: television satellites [#permalink] New post 09 Jul 2008, 20:23
2
This post received
KUDOS
vksunder wrote:
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?


The mishaps have already led to an increase in the cost of satellites. This has led to the current situation: 'pressure to squeeze more performance out of currently operating satellites.' Why would the costs go up even further? If squeezing more performance out of current satellites is likely to be lead to further increases in costs. Of the answer choices, B is irrelevant, A, D and E describe why satellites should be expensive, not why costs should increase. Only C describes why 'squeezing more performance out of currently operating satellites' is likely to lead to satellite breakdown, which, as the question stem has established, leads to an increase in costs.


vksunder wrote:
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.

Please support your answers with a brief explanation

_________________

Nov 2011: After years of development, I am now making my advanced Quant books and high-level problem sets available for sale. Contact me at ianstewartgmat at gmail.com for details.

Private GMAT Tutor based in Toronto

Director
Director
User avatar
Joined: 01 Apr 2008
Posts: 909
Schools: IIM Lucknow (IPMX) - Class of 2014
Followers: 15

Kudos [?]: 216 [0], given: 18

GMAT Tests User
Re: CR: television satellites [#permalink] New post 10 Jul 2008, 05:57
IMO C.
B,D, E are irrelevant.
From A and C:
A gives answer to why insurance premiums are high. This reasoning is already stated implicitly in the argument, it is more of an assumption.

C actually supports the argument.

What is OA?
Senior Manager
Senior Manager
avatar
Joined: 24 Feb 2007
Posts: 267
Location: nj
Followers: 1

Kudos [?]: 43 [0], given: 2

GMAT Tests User
Re: CR: television satellites [#permalink] New post 10 Jul 2008, 06:11
IMO , c
Senior Manager
Senior Manager
avatar
Joined: 10 Mar 2008
Posts: 376
Followers: 3

Kudos [?]: 52 [0], given: 0

GMAT Tests User
Re: CR: television satellites [#permalink] New post 11 Jul 2008, 05:55
OA = C. Thanks guys!
Manager
Manager
avatar
Joined: 28 Sep 2011
Posts: 206
GMAT 1: Q V
Followers: 1

Kudos [?]: 32 [0], given: 5

GMAT Tests User
Re: A recent spate of launching and operating mishaps with [#permalink] New post 21 Mar 2012, 17:24
I agree with the answer C here:

The conclusion is: [highlight]The cost of television satellites will continue to rise[/highlight]

In this case, the conclusion is actually in the question stem.

A. This only describes why the price of the satellites is high. It does not explain why the cost will continue to increase.

B. I felt that the cause of failure was irrelevant in this case because it doesn't explain why the costs of the satellites would increase.

C. This answer choice correctly explains the reason why costs will continue to increase - since the currently operating satellites would be squeezed for more performance, this also means that they are also very likely to break down quicker. Therefore, the cost of maintenance and returning them back to operation would increase the costs.

D. This answer choice only explains the production of the satellites itself. It could explain why the cost of the satellite is high, but not why the costs would continually increase.

E. Although the satellites are inefficient, this would not explain why the costs would continually increase.
Senior Manager
Senior Manager
avatar
Joined: 12 Mar 2012
Posts: 370
Concentration: Operations, Strategy
Followers: 2

Kudos [?]: 104 [0], given: 31

Re: A recent spate of launching and operating mishaps with [#permalink] New post 21 Mar 2012, 21:12
straight C as it goes only one making sense
_________________

Practice Practice and practice...!!

If my reply /analysis is helpful-->please press KUDOS
If there's a loophole in my analysis--> suggest measures to make it airtight.

Intern
Intern
avatar
Joined: 15 Oct 2011
Posts: 35
Followers: 0

Kudos [?]: 4 [0], given: 21

Re: A recent spate of launching and operating mishaps with [#permalink] New post 16 Sep 2012, 23:35
I'm a little confused between C and E.
In E: if inefficiencies are inevitable, then satellites will have some problems causing further mishaps in launching/operating. Since the satellites itself aren't error-free when manufactured, problems won't cease and hence cost will continue to increase

C is also correct, but too narrow. Doesn't consider the possibility of problems with launching satellites?
This is a strengthen q. so new information can be added.. please explain where am I going wrong?



whamberto wrote:
I agree with the answer C here:

The conclusion is: The cost of television satellites will continue to rise

In this case, the conclusion is actually in the question stem.

A. This only describes why the price of the satellites is high. It does not explain why the cost will continue to increase.

B. I felt that the cause of failure was irrelevant in this case because it doesn't explain why the costs of the satellites would increase.

C. This answer choice correctly explains the reason why costs will continue to increase - since the currently operating satellites would be squeezed for more performance, this also means that they are also very likely to break down quicker. Therefore, the cost of maintenance and returning them back to operation would increase the costs.

D. This answer choice only explains the production of the satellites itself. It could explain why the cost of the satellite is high, but not why the costs would continually increase.

E. Although the satellites are inefficient, this would not explain why the costs would continually increase.
Director
Director
avatar
Joined: 03 Aug 2012
Posts: 905
Concentration: General Management, General Management
Schools: ISB '16
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
Followers: 12

Kudos [?]: 205 [0], given: 312

Premium Member CAT Tests
Re: A recent spate of launching and operating mishaps with [#permalink] New post 20 May 2013, 21:07
Folks,

I think many people deviated here and misunderstood the COSTS with the maintenance/operating costs.

Conclusion: COST of television satellites will continue to increase.

When I attempted this question, I searched for an option which will cause an increase in COST of TS.However, I saw some of the posts mentioning that (C) is the answer because increase in beak down will increase maintenance costs.

But IMHO (C) is the answer because more frequently those satellites break down more is the demand thereby more is the price/cost of television satellite.

Plz Advise !!

Rgds,
TGC !!
_________________

Rgds,
TGC!
_____________________________________________________________________
I Assisted You => KUDOS Please
_____________________________________________________________________________

Senior Manager
Senior Manager
avatar
Joined: 16 Dec 2011
Posts: 453
Followers: 9

Kudos [?]: 144 [0], given: 70

Re: A recent spate of launching and operating mishaps with [#permalink] New post 21 May 2013, 03:22
Here the events mentioned are as follows:
(1) spate of launching and operating mishaps
(2) surge in insurance claims
(3) increase in insurance premiums
(4) satellites becoming more expensive to launch and operate
(5) demand for more performance out of currently operating satellites
(6) more frequent break down of satellites because of greater performance demands

Flow of events is:
(1) --> (2) --> (3) --> (4) --> (5) --> (6) --> (1) --> (2)
(In fact, point 6 and point 1 can be treated as same. But I mentioned those separately just to have words and flow similar to those of argument.)

As can be seen, this is a cyclic process. Point (5) here is as mentioned in option C.

Here point (4) and cyclic effect of the process are considered to arrive at the conclusion "The cost of television satellites will continue to rise". The "cost" mentioned in the conclusion is total cost = cost to launch + cost to operate.

PS: Here my analysis is bound to show how option C contributes to the conclusion.
Manager
Manager
avatar
Joined: 04 Nov 2012
Posts: 70
Schools: NTU '16 (A)
Followers: 0

Kudos [?]: 20 [0], given: 39

Re: A recent spate of launching and operating mishaps with [#permalink] New post 22 Jul 2013, 07:59
Though , choice C is the correct answer here. What i do not understand is how Choice E is irrelevant.

the satellites are built by unwieldy manufacturers,so inefficiencies are inevitable.

Now , it is not clear which inefficiencies the choice refers to.

It could be inefficiency in operation,leading to higher failures- in this case increasing costs.
It could be innefficient construction-not increasing costs.
Expert Post
1 KUDOS received
e-GMAT Representative
User avatar
Joined: 02 Nov 2011
Posts: 1789
Followers: 1268

Kudos [?]: 3533 [1] , given: 185

Re: A recent spate of launching and operating mishaps with [#permalink] New post 24 Jul 2013, 19:07
1
This post received
KUDOS
Expert's post
12bhang wrote:
Though , choice C is the correct answer here. What i do not understand is how Choice E is irrelevant.

the satellites are built by unwieldy manufacturers,so inefficiencies are inevitable.

Now , it is not clear which inefficiencies the choice refers to.

It could be inefficiency in operation,leading to higher failures- in this case increasing costs.
It could be innefficient construction-not increasing costs.

Hi,

It doesn't really matter which inefficiencies we are talking about here.

The keyword in the conclusion is "increasing" - that the costs will continue to increase.

Option E does not say that the inefficiencies will continue to rise. It just says some inefficiencies will remain - so what - it does not mean that the costs will INCREASE. It just means that costs must remain high.

Thanks,
Chiranjeev
_________________

https://www.youtube.com/watch?v=WeT9_Wr0DlI&feature=youtu.be

SVP
SVP
User avatar
Joined: 01 Oct 2013
Posts: 1925
Followers: 260

Kudos [?]: 58 [0], given: 0

Premium Member
Re: A recent spate of launching and operating mishaps with [#permalink] New post 09 Aug 2014, 17:01
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: A recent spate of launching and operating mishaps with   [#permalink] 09 Aug 2014, 17:01
    Similar topics Author Replies Last post
Similar
Topics:
22 Experts publish their posts in the topic The recent spate of traffic jams on Beijing-Tibet highway daagh 38 19 Oct 2010, 05:01
A recent spate of launching and operating mishaps with noboru 3 05 Sep 2009, 05:18
A recent spate of launching and operating mishaps with shinewine 9 20 Feb 2007, 08:13
During the recent spate of brushfires in the Southwest, shoonya 12 03 Aug 2006, 11:50
An investigation must be launched into the operations of the ranga41 8 23 Aug 2005, 17:02
Display posts from previous: Sort by

A recent spate of launching and operating mishaps with

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.