A recent spate of launching and operating mishaps with : GMAT Critical Reasoning (CR)
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# A recent spate of launching and operating mishaps with

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A recent spate of launching and operating mishaps with [#permalink]

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09 Jul 2008, 19:57
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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.
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09 Jul 2008, 20:23
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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.

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Re: A recent spate of launching and operating mishaps with [#permalink]

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21 Mar 2012, 17:24
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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.
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Re: A recent spate of launching and operating mishaps with [#permalink]

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24 Jul 2013, 19:07
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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
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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?
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10 Jul 2008, 06:11
IMO , c
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11 Jul 2008, 05:55
OA = C. Thanks guys!
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Re: A recent spate of launching and operating mishaps with [#permalink]

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

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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.
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Re: A recent spate of launching and operating mishaps with [#permalink]

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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.

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Re: A recent spate of launching and operating mishaps with [#permalink]

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21 May 2013, 03:22
Here the events mentioned are as follows:
(1) spate of launching and operating mishaps
(2) surge in insurance claims
(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.
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Re: A recent spate of launching and operating mishaps with [#permalink]

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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.
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Re: A recent spate of launching and operating mishaps with [#permalink]

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09 Aug 2014, 17:01
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09 Oct 2015, 20:18
Hello from the GMAT Club VerbalBot!

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14 Apr 2016, 07:15
premise + justification --> Conclusion

premise: mishaps increased premiums which in turn increased cost, increasing pressure to squeeze more performance.

Conclusion: Cost will continue to increase

The justification will be something along the lines of - squeezing more performance will in turn increase cost ( resulting in a positive feedback)
A recent spate of launching and operating mishaps with   [#permalink] 14 Apr 2016, 07:15
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