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For similar cars and drivers, automobile insurance for [#permalink]

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New post 16 Jan 2008, 14:28
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For similar cars and drivers, automobile insurance for collision damage has
always cost more in Greatport than in Faimont. Police studies, however,
show that cars owned by Greatport residents are, on average, slightly less
likely to be involved in a collision than cars in Fairmont. Clearly, therefore,
insurance companies are making a greater profit on collision-damage
insurance in Greatport than in Fairmont.

Which of the following is an assumption on which the argument depends?

A. Repairing typical collision damage does not cost more in Greatport
than in Fairmont.
B. There are no more motorists in Greatport than in Fairmont.
C. Greatport residents who have been in a collision are more likely to
report it to their insurance company than Fairmont residents are.
D. Fairmont and Greatport are the cities with the highest collisiondamage
insurance rates.
E. The insurance companies were already aware of the difference in the
like lihood of collisions before the publication of the police reports.
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Re: CR - Automobiles Insurance [#permalink]

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New post 16 Jan 2008, 15:44
IMO B .
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Re: CR - Automobiles Insurance [#permalink]

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New post 16 Jan 2008, 18:29
JCLEONES wrote:
For similar cars and drivers, automobile insurance for collision damage has
always cost more in Greatport than in Faimont. Police studies, however,
show that cars owned by Greatport residents are, on average, slightly less
likely to be involved in a collision than cars in Fairmont. Clearly, therefore,
insurance companies are making a greater profit on collision-damage
insurance in Greatport than in Fairmont.

Which of the following is an assumption on which the argument depends?

A. Repairing typical collision damage does not cost more in Greatport
than in Fairmont.
B. There are no more motorists in Greatport than in Fairmont.
C. Greatport residents who have been in a collision are more likely to
report it to their insurance company than Fairmont residents are.
D. Fairmont and Greatport are the cities with the highest collisiondamage
insurance rates.
E. The insurance companies were already aware of the difference in the
like lihood of collisions before the publication of the police reports.


I would have to go with A.
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Re: CR - Automobiles Insurance [#permalink]

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New post 16 Jan 2008, 18:32
Concur with A.
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Re: CR - Automobiles Insurance [#permalink]

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New post 16 Jan 2008, 19:13
A

Insurance company may be making lesser profit because of higher cost of repair
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Re: CR - Automobiles Insurance [#permalink]

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New post 16 Jan 2008, 22:44
Conclusion: insurance companies are making a greater profit on collision-damage
Insurance in Great port than in Fairmont.




A. Repairing typical collision damage does not cost more in Greatport
than in Fairmont. [Hold it]
B. There are no more motorists in Greatport than in Fairmont. [Irrelevant]
C. Greatport residents who have been in a collision are more likely to
report it to their insurance company than Fairmont residents are. [This weakens the argument – Eliminate it]
D. Fairmont and Greatport are the cities with the highest collisiondamage
insurance rates. [Irrelevant]
E. The insurance companies were already aware of the difference in the
like lihood of collisions before the publication of the police reports. [Irrelevant]

Correct Answer: A
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Re: CR - Automobiles Insurance [#permalink]

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New post 17 Jan 2008, 23:25
A it is
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Re: CR - Automobiles Insurance [#permalink]

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New post 17 Jan 2008, 23:30
A. Correct. They are making a greater profit so cost should be the same for both.
B. The number of motorist are not in question.
C. The reporting doesn't matter, only the cost to repair vs insurance.
D. Out of scope, not comparing other cities.
E. Out of scope, we don't know what the insurance companies knew.
Re: CR - Automobiles Insurance   [#permalink] 17 Jan 2008, 23:30
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