During the past year, Pro-Tect Insurance Company's total : GMAT Critical Reasoning (CR)
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# During the past year, Pro-Tect Insurance Company's total

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During the past year, Pro-Tect Insurance Company's total [#permalink]

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05 Oct 2008, 19:44
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65% (hard)

Question Stats:

61% (02:38) correct 39% (01:45) wrong based on 504 sessions

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During the past year, Pro-Tect Insurance Company's total payout on car-theft claims has been larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing such devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect's plan is likely to reduce its annual payouts.

In the argument above, the two portions in boldface play which of the following roles?

(A) The first and the second are both evidence offered by the argument as support for its main conclusion.
(B) The first presents a problem a response to which the argument assesses; the second is the judgment reached by that assessment.
(C) The first is the position the argument seeks to establish; the second is a judgment the argument uses to support that position.
(D) The first is a development that the argument seeks to explain; the second is a prediction the argument makes in support of the explanation it offers.
(E) The first presents a development whose likely outcome is at issue in the argument; the second is a judgment the argument uses in support of its conclusion about that outcome.

[Reveal] Spoiler:
I don't have OA for this one.IMO D
[Reveal] Spoiler: OA

Last edited by JarvisR on 07 Jul 2015, 02:15, edited 1 time in total.
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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05 Oct 2008, 20:34
IMO, it is C.
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05 Oct 2008, 21:27
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IMO "E"
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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06 Oct 2008, 05:00
The second is a conclusion, so i think is B.
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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06 Oct 2008, 09:36
arorag wrote:
During the past year, Pro-Tect Insurance Company's total payout on car-theft claims has been larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing such devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect's plan is likely to reduce its annual payouts.

In the argument above, the two portions in boldface play which of the following roles?

(A) The first and the second are both evidence offered by the argument as support for its main conclusion. -> this is OUT 1st and 2nd are different situations all together

(B) The first presents a problem a response to which the argument assesses; the second is the judgment reached by that assessment.
-> this is correct ,first is a problem in situation for which second is a judgement

(C) The first is the position the argument seeks to establish; the second is a judgment the argument uses to support that position. ->
first is not a position which argument establishes

(D) The first is a development that the argument seeks to explain; the second is a prediction the argument makes in support of the explanation it offers. -> seond is not a prediction

(E) The first presents a development whose likely outcome is at issue in the argument; the second is a judgment the argument uses in support of its conclusion about that outcome. -> likely outcome is not at issue !!!

I don't have OA for this one.IMO D

First and second are two different scenarios infact opposing ones
First is the concln that argument rejects , second is a premise+concl which argument concludes
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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06 Oct 2008, 11:30
i think it shud be B

as he first sentence is a problem (i dnt think we can call it a development)

and the last is just a prediction which is based on the assesment that people will respond +vely to the company's new policy
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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25 Nov 2010, 06:42
OA is B
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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25 Nov 2010, 13:44
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arorag wrote:
During the past year, Pro-Tect Insurance Company's total payout on car-theft claims has been larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing such devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect's plan is likely to reduce its annual payouts.

In the argument above, the two portions in boldface play which of the following roles?

(A) The first and the second are both evidence offered by the argument as support for its main conclusion.
(B) The first presents a problem a response to which the argument assesses; the second is the judgment reached by that assessment.
(C) The first is the position the argument seeks to establish; the second is a judgment the argument uses to support that position.
(D) The first is a development that the argument seeks to explain; the second is a prediction the argument makes in support of the explanation it offers.
(E) The first presents a development whose likely outcome is at issue in the argument; the second is a judgment the argument uses in support of its conclusion about that outcome.

I don't have OA for this one.IMO D

So we break down the stimulus

Main conclusion: Pro-Tect's plan is likely to reduce its annual payouts.

During the past year, Pro-Tect Insurance Company's total payout on car-theft claims has been larger than the company can afford to sustain. - a premise
Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. - Pro-Tect's judgment used to build the argument
Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. - a premise
Many policyholders will respond to the discount by installing such devices, since the amount of the discount will within two years typically more than cover the cost of installation. - a judgment but it is used to support the main conclusion of the argument.
[b] cars with antitheft devices are rarely stolen - a premise

One thing I do not like in this question is that the second bold sentence has both the main conclusion and a premise in it. Generally, even if a sentence has both a premise and a conclusion, only one part is kept bold.

We see option (A) is definitely out.
(B) does explain the roles of the two boldface statements. The first statement is a solution that will not work - so a problem. The argument assesses it and offers an alternate solution - the judgment or conclusion, if you may- in second statement.
(C) is out since the first is not the position the argument is trying to establish. ('position argument is trying to establish' means 'main conclusion')
(D) is out because the first statement is not a development that the argument seeks to explain.
(E) is out because first statement is not a development whose outcome is at issue.

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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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05 Jul 2014, 21:34
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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04 Sep 2014, 11:47
As a non native speaker, I could not understand the alternative B. Can someone rephrase it for me? =)
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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31 Jul 2015, 04:45
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plaverbach wrote:
As a non native speaker, I could not understand the alternative B. Can someone rephrase it for me? =)

(B)The first presents a problem a response to which the argument assesses; the second is the judgment reached by that assessment.

The first statement says that this is a problem - Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. - whose solution we are trying to find in subsequent arguments. That is the case because subsequent statements talk about solving the problem. The second is a judgement means conclusion that we reached after the analysis.

Here is a brief analysis of all the options -

(A) The first and the second are both evidence offered by the argument as support for its main conclusion.

Incorrect. Second is the main conclusion of the question and it doesn't give any evidence. First is also not an evidence technically.

(B) The first presents a problem a response to which the argument assesses; the second is the judgment reached by that assessment.

Correct. Explained above.

(C)The first is the position the argument seeks to establish; the second is a judgment the argument uses to support that position.

Incorrect. The first is not the position the argument seeks to establish i.e. First statement is not the conclusion of the argument. Second is the judgement used to support first --> wrong. Second is the main conclusion.

(D)) The first is a development that the argument seeks to explain; the second is a prediction the argument makes in support of the explanation it offers.

The first is not a development and subsquent arguements don't explain anything. The first BF is left by itself. Next statements introduce new issues altogether.

(E) The first presents a development whose likely outcome is at issue in the argument; the second is a judgment the argument uses in support of its conclusion about that outcome. - same as (D)
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Re: During the past year, Pro-Tect Insurance Company's total [#permalink]

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15 Jan 2016, 01:53
(B) CORRECT. Aptly suggests that boldface 1 is the problem and bold-face the conclusion to that problem

(C) Indicates boldface 1 to be the conclusion.

(D) The second bold-face is not a prediction but the conclusion. The prediction in the para is “Many policyholders will respond to the discount by installing such devices, since the amount of the discount will within two years typically more than cover the cost of installation.”

(E) Indicates that neither of the bold-faces form the conclusion. We know this to be incorrect.
Re: During the past year, Pro-Tect Insurance Company's total   [#permalink] 15 Jan 2016, 01:53
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