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Pro-Tect Insurance Company has recently been paying out more

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Status: GMAT_Hound
Joined: 04 Jun 2013
Posts: 336
Location: India
Concentration: Statistics, International Business
Schools: Fuqua, ISB '15
GMAT Date: 12-02-2013
GPA: 3.32
WE: Information Technology (Computer Software)
Followers: 45

Kudos [?]: 154 [0], given: 37

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Pro-Tect Insurance Company has recently been paying out more [#permalink] New post 09 Sep 2013, 10:06
Expert's post
1
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A
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Difficulty:

  25% (medium)

Question Stats:

71% (02:48) correct 29% (03:15) wrong based on 223 sessions
Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 29
Page: 126
Difficulty:


Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft devices or alarm systems are much less likely to be stolen than are other cars. Consequently Pro-Tect, as part of an effort to reduce its annual payouts, will offer a discount to holders of car-theft policies if their cars have anti-theft devices or alarm systems.

Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?

(A) The decrease in the risk of car theft conferred by having a car alarm is greatest when only a few cars have such alarms.
(B) The number of policyholders who have filed a claim in the past year is higher for Pro-Tect than for other insurance companies.
(C) In one or two years, the discount that Pro-Tect is offering will amount to more than the cost of buying certain highly effective antitheft devices.
(D) Currently, Pro-Tect cannot legally raise the premiums it charges for a given amount of insurance against car theft.
(E) The amount Pro-Tect has been paying out on cartheft claims has been greater for some models of car than for others.
[Reveal] Spoiler: OA

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Last edited by Narenn on 16 Oct 2013, 06:58, edited 2 times in total.
Necessary Corrections for Official Guide Verbal Review 2nd Edition Project
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Expert Post
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: GMAT_Hound
Joined: 04 Jun 2013
Posts: 336
Location: India
Concentration: Statistics, International Business
Schools: Fuqua, ISB '15
GMAT Date: 12-02-2013
GPA: 3.32
WE: Information Technology (Computer Software)
Followers: 45

Kudos [?]: 154 [0], given: 37

GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: CR [#permalink] New post 09 Sep 2013, 10:09
Expert's post
Only option that suggests that discount might get customers intersted in installaing an anti-theft decive is C for Charlie
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S

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Manager
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Joined: 07 Mar 2012
Posts: 54
Location: India
Concentration: General Management, Nonprofit
GMAT Date: 09-13-2013
GPA: 4
WE: Engineering (Energy and Utilities)
Followers: 1

Kudos [?]: 80 [0], given: 59

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink] New post 18 Nov 2013, 07:09
Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft devices or alarm systems are much less likely to be stolen than are other cars. Consequently Pro-Tect, as part of an effort to reduce its annual payouts, will offer a discount to holders of car-theft policies if their cars have anti-theft devices or alarm systems.

Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?

(A) The decrease in the risk of car theft conferred by having a car alarm is greatest when only a few cars have such alarms.
(B) The number of policyholders who have filed a claim in the past year is higher for Pro-Tect than for other insurance companies.
(C) In one or two years, the discount that Pro-Tect is offering will amount to more than the cost of buying certain highly effective anti theft devices.
(D) Currently, Pro-Tect cannot legally raise the premiums it charges for a given amount of insurance against car theft.
(E) The amount Pro-Tect has been paying out on cartheft claims has been greater for some models of car than for others.

Option C : discount > cost of anti theft device

then obviously people buy anti theft device before buying Insurance!!
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Re: Pro-Tect Insurance Company has recently been paying out more   [#permalink] 18 Nov 2013, 07:09
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