For similar cars and comparable drivers, automobile

Automobile Insurance

Step 1: Identify the Question

The words evaluating the argument in the question indicate that this is an Evaluate the Argument question.

Step 2: Deconstruct the Argument

Ins prices: G>F

Collisions: G<F

© Profits G>F

Step 3: Pause and State the Goal

On Evaluate questions, the answer is something that would be important to know in order to determine whether the conclusion is valid. The argument presents information on two factors that likely influence profits (prices and the likelihood of accidents). Are there any other factors that could be important?

Step 4: Work from Wrong to Right

(A) The amount of traffic congestion does not directly affect the profits of insurance companies. There could be indirect effects (e.g. more traffic congestion could influence accident severity), but the correct answer should have a clear link to the conclusion, not an indirect one that would require several additional assumptions.

(B) CORRECT. The relative cost of repairing damage in the two cities directly influences profits. If repairs cost more in Greatport than Fairmont, this information would weaken the conclusion. If repairs in Greatport cost the same as or less than repairs in Fairmont, the conclusion would be strengthened.

(C) The conclusion is about the profits on collision damage insurance; information about other types of insurance is not relevant.

(D) The road conditions do not have a clear connection to profits. Road conditions could influence driving behavior (e.g. slower driving speeds) or accidents (e.g. greater damage) but the connection is not clear. On Evaluate questions, correct answer should directly relate to the conclusion without the need for additional information.

(E) The argument focuses on a comparison between Greatport and Fairmont. Comparisons to other cities are not important to this conclusion.