GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 13 Dec 2018, 14:33

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Events & Promotions

Events & Promotions in December
PrevNext
SuMoTuWeThFrSa
2526272829301
2345678
9101112131415
16171819202122
23242526272829
303112345
Open Detailed Calendar
• GMATbuster's Weekly GMAT Quant Quiz, Tomorrow, Saturday at 9 AM PST

December 14, 2018

December 14, 2018

09:00 AM PST

10:00 AM PST

10 Questions will be posted on the forum and we will post a reply in this Topic with a link to each question. There are prizes for the winners.
• The winning strategy for 700+ on the GMAT

December 13, 2018

December 13, 2018

08:00 AM PST

09:00 AM PST

What people who reach the high 700's do differently? We're going to share insights, tips and strategies from data we collected on over 50,000 students who used examPAL.

A design flaw in deep-sea research submarines has led to the

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

Hide Tags

Manager
Joined: 25 Nov 2011
Posts: 190
Location: India
Concentration: Technology, General Management
GPA: 3.95
WE: Information Technology (Computer Software)
A design flaw in deep-sea research submarines has led to the  [#permalink]

Show Tags

26 Feb 2012, 06:11
1
14
00:00

Difficulty:

75% (hard)

Question Stats:

53% (01:58) correct 47% (02:13) wrong based on 579 sessions

HideShow timer Statistics

A design flaw in deep-sea research submarines has led to the failures of many research projects. These projects are insured against such losses; as a result, claims against policies underwriting deep-sea research projects have increased greatly. Insurance premiums for these projects have been raised in response to these higher claims. These cost increases have led research institutions to try to accomplish more research with fewer research projects.

Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of conducting deep-sea research will continue to rise?

A. Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high.

B. When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy.

C. The greater the research demands placed on a given project, the more likely that project will fail.

D. Most research institutions undertake so few projects that no economies of scale can be realized.

E. Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable.

_________________

-------------------------
-Aravind Chembeti

Manager
Joined: 19 Apr 2011
Posts: 199
Schools: Booth,NUS,St.Gallon
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

26 Feb 2012, 10:28
I dont understand how C can be the answer ..Actually none of the options are convincing !! Its no where said and can be inferred that it is the demand which is causing the increase in the errors .Can anyone explain pls ..
_________________

+1 if you like my explanation .Thanks

Manager
Joined: 07 Dec 2011
Posts: 86
Location: India
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

26 Feb 2012, 17:32
1
picked A but after seeing OA is C i get how it is right..

A) Is a justification of high insurance premiums now instead of a rationale behind why they will continue to rise. so irrelevant. wrong
B) Irrelevant. wrong
C) The increased likelihood that a project will fail based on greater research demands placed on them means that a larger number of projects will fail leading to higher insurance premiums for insurance against failures. So correct.
D) Irrelevant. wrong
E) Not related to why insurance premiums may be higher in the future. Just tells us something about research projects which is true now. wrong

Good question by the way..
Retired Moderator
Status: Flying over the cloud!
Joined: 16 Aug 2011
Posts: 613
Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

27 Feb 2012, 00:21
1
Here is my answer :D

Chembeti wrote:
A design flaw in deep-sea research submarines has led to the failures of many research projects. These projects are insured against such losses; as a result, claims against policies underwriting deep-sea research projects have increased greatly. Insurance premiums for these projects have been raised in response to these higher claims. These cost increases have led research institutions to try to accomplish more research with fewer research projects.

Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of conducting deep-sea research will continue to rise?

A. Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high. => this only said about the value of insurance, NOT talk anything about the cost of failed projects, which leads to increase costs

B. When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy. => this choice does not insist about the cost as well as the factors that increase cost, so irrelevant

C. The greater the research demands placed on a given project, the more likely that project will fail. => when the research demands increase, the percentage of failing projects is high => more cost (= implementing projects cost + insurance cost)

D. Most research institutions undertake so few projects that no economies of scale can be realized. => irrelevant

E. Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable. => irrelevant

_________________
Manager
Joined: 25 Nov 2011
Posts: 190
Location: India
Concentration: Technology, General Management
GPA: 3.95
WE: Information Technology (Computer Software)
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

27 Feb 2012, 00:58
saikarthikreddy wrote:
I dont understand how C can be the answer ..Actually none of the options are convincing !! Its no where said and can be inferred that it is the demand which is causing the increase in the errors .Can anyone explain pls ..

No. of researches increases as no. of failure cases increases (assuming those reseraches continue till they accomplish their goal)
As no. of researches increases, obviously thier corresponding cost (associated with insurance) also increases.

Hope this is clear.
_________________

-------------------------
-Aravind Chembeti

Intern
Joined: 28 Feb 2011
Posts: 43
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

28 Feb 2012, 21:34
Chembeti wrote:
A design flaw in deep-sea research submarines has led to the failures of many research projects. These projects are insured against such losses; as a result, claims against policies underwriting deep-sea research projects have increased greatly. Insurance premiums for these projects have been raised in response to these higher claims. These cost increases have led research institutions to try to accomplish more research with fewer research projects.

Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of conducting deep-sea research will continue to rise?

took me 2:34 to solve, but struggled between A and C. here's my take on it.

Stimulus given above is a fact set with conclusion in the question stem : cost of conducting deep sea research will continue to rise.

fact 1 : design flaw led to failure in many research projects.
fact 2 : claims against policies underwriting deep sea research have increased.
fact 3 : premiums have been raised in response
sub conclusion : these increased premiums have led to more research in fewer projects.

so correct answer could either show increased failure rate of project having more research OR will show that insurance premium will rise based on amount of work involved in a project.

A. Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high. could be kept as a contender.

B. When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy. this does not have any impact on cost of premiums. hence out of scope

C. The greater the research demands placed on a given project, the more likely that project will fail. this leads to further increase in insurance premium due to increased failure rate and hence greater cost in conducting research. Correct answer

D. Most research institutions undertake so few projects that no economies of scale can be realized.economies of scales on undertaking research has no role in premiums paid for individual project. hence out of scope

E. Since many research projects are undertaken by coalitions of research institutions, inefficiencies are inevitable.[color=#FF0000]out of scope[/color]

finally out of A and C, I choose C because it impacts conclusion much more directly. Though not very much convinced
Intern
Joined: 28 Feb 2011
Posts: 43
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

28 Feb 2012, 21:38
after going through tuanquang269 reply, I now see what i missed during evaluating options - cost of project. so C is a clear winner
Manager
Joined: 01 Nov 2010
Posts: 127
Location: Zürich, Switzerland
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

29 Feb 2012, 16:16
1
Close calls between statements A and C. finally I chose C

A. Since the risk to insurers of underwriting research is spread over relatively few projects, insurance premiums are necessarily very high.-- Portrays the same reason as posted in the argument.
C. The greater the research demands placed on a given project, the more likely that project will fail. Correct. the original argument ends at a result that there will be greater research outcome expectations on lesser number of projects. this sentence adds the further fact that increase in research demands would cause even higher number of failures.
Manager
Joined: 10 Nov 2010
Posts: 189
Location: India
Concentration: Strategy, Operations
GMAT 1: 520 Q42 V19
GMAT 2: 540 Q44 V21
WE: Information Technology (Computer Software)
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

07 Mar 2012, 00:43
+C

It is a circular causal effect type

Failure(Cause)->> High \$ of insurance ->> more demand ->> more failure

Correct me if m wrong in pattern recognition
_________________

The proof of understanding is the ability to explain it.

VP
Status: mission completed!
Joined: 02 Jul 2009
Posts: 1283
GPA: 3.77
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

07 Mar 2012, 03:59
Hi all,

ans is C,

to strengthen an argument you must either strengthen the assumption or fill up the gap between the assumption and a conclusion.

Argument's conslusion is: "the cost of conducting deep-sea research will continue to rise"

you must support it.
The assumption "The greater the research demands placed on a given project, the more likely that project will fail" in this case supports the conslusion, others do not.

Here is a logical chain guys, bad design->failure-> failures are insured-> rise in insurance premiums->increased costs->try to accomplish more research with fewer research projects.
_________________

Audaces fortuna juvat!

GMAT Club Premium Membership - big benefits and savings

Intern
Joined: 09 Feb 2012
Posts: 14
Concentration: Strategy, General Management
GMAT 1: 640 Q44 V34
GPA: 3.8
Re: A design flaw in deep-sea research submarines has  [#permalink]

Show Tags

07 Mar 2012, 12:33
1
Wow i solved the same question a few hours ago but with different wordings..
Same question wearing a different disguise.Even the answer options are more or less same.

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.

It was the same question
As usual answer is here also
Intern
Joined: 16 Jan 2012
Posts: 7
WE: Information Technology (Computer Software)
Re: A design flaw in deep-sea research submarines has led to the  [#permalink]

Show Tags

21 Aug 2012, 08:05
1
The conclusion in this problem is not contained within the stimulus itself, but rather in the question stem. The conclusion is that the cost of deep-sea research projects will rise in the future. The stimulus, therefore, provides the evidence, explaining that mechanical failures have increased the number of failed research projects and thus increased insurance claims by researchers, which has increased premiums for policies on these types of projects. Higher premiums make projects more expensive, causing institutions to increase their expectations of each individual project. If (C) is true, then the greater demands on projects will cause more of those projects to fail, thus pushing the cost of these projects higher still. (C) is the correct answer.

Choice (A) explains why one particular cost, insurance, is high, but nothing in the stimulus indicates that these costs will continue to rise.

The impossibility to determine why projects fail has nothing to do with an expectation of continually rising costs. Choice (B) is, therefore, beyond the scope.

Choice (D) describes one source of high costs in research projects, but there's no reason to think it will lead to continually rising costs.

Choice (E) explains that projects are often inefficient (and, therefore, more expensive than they should be) but we have no reason to believe that they will grow increasingly inefficient (so we have no reason to think that costs will continue to rise).

Source of Explanation: Kaplan Free Question of the Day
Kaplan GMAT Instructor
Joined: 25 Aug 2009
Posts: 635
Location: Cambridge, MA
Re: A design flaw in deep-sea research submarines has led to the  [#permalink]

Show Tags

21 Aug 2012, 13:49
2
biswan02 wrote:
The conclusion in this problem is not contained within the stimulus itself, but rather in the question stem. The conclusion is that the cost of deep-sea research projects will rise in the future. The stimulus, therefore, provides the evidence, explaining that mechanical failures have increased the number of failed research projects and thus increased insurance claims by researchers, which has increased premiums for policies on these types of projects. Higher premiums make projects more expensive, causing institutions to increase their expectations of each individual project. If (C) is true, then the greater demands on projects will cause more of those projects to fail, thus pushing the cost of these projects higher still. (C) is the correct answer.

Choice (A) explains why one particular cost, insurance, is high, but nothing in the stimulus indicates that these costs will continue to rise.

The impossibility to determine why projects fail has nothing to do with an expectation of continually rising costs. Choice (B) is, therefore, beyond the scope.

Choice (D) describes one source of high costs in research projects, but there's no reason to think it will lead to continually rising costs.

Choice (E) explains that projects are often inefficient (and, therefore, more expensive than they should be) but we have no reason to believe that they will grow increasingly inefficient (so we have no reason to think that costs will continue to rise).

Source of Explanation: Kaplan Free Question of the Day
Thanks for sharing this, biswan02!
_________________

Eli Meyer
Kaplan Teacher
http://www.kaptest.com/GMAT

Prepare with Kaplan and save \$150 on a course!

Kaplan Reviews

Director
Joined: 03 Feb 2013
Posts: 851
Location: India
Concentration: Operations, Strategy
GMAT 1: 760 Q49 V44
GPA: 3.88
WE: Engineering (Computer Software)
Re: A design flaw in deep-sea research submarines has led to the  [#permalink]

Show Tags

25 Jan 2014, 23:08
1
biswan02 wrote:
The conclusion in this problem is not contained within the stimulus itself, but rather in the question stem. The conclusion is that the cost of deep-sea research projects will rise in the future. The stimulus, therefore, provides the evidence, explaining that mechanical failures have increased the number of failed research projects and thus increased insurance claims by researchers, which has increased premiums for policies on these types of projects. Higher premiums make projects more expensive, causing institutions to increase their expectations of each individual project. If (C) is true, then the greater demands on projects will cause more of those projects to fail, thus pushing the cost of these projects higher still. (C) is the correct answer.

Choice (A) explains why one particular cost, insurance, is high, but nothing in the stimulus indicates that these costs will continue to rise.

The impossibility to determine why projects fail has nothing to do with an expectation of continually rising costs. Choice (B) is, therefore, beyond the scope.

Choice (D) describes one source of high costs in research projects, but there's no reason to think it will lead to continually rising costs.

Choice (E) explains that projects are often inefficient (and, therefore, more expensive than they should be) but we have no reason to believe that they will grow increasingly inefficient (so we have no reason to think that costs will continue to rise).

Source of Explanation: Kaplan Free Question of the Day

Nice explanation. But I have a doubt here.

As the rising cost is because of "A design flaw in deep-sea research submarines", if we can identify the flaw, the research projects can succeed. In that case, as there are no further claims, the premiums of the insurance cover decreases and subsequently the cost of the research projects can be reduced.

That is the reason why I marked Option B) When research projects fail, the causes of failure are generally impossible to pinpoint with accuracy.

if we cannot identify the flaw with accuracy then the actual problem will never be rectified and the cycle repeats.

Can you please clarify?
_________________

Thanks,
Kinjal

My Application Experience : http://gmatclub.com/forum/hardwork-never-gets-unrewarded-for-ever-189267-40.html#p1516961

Please click on Kudos, if you think the post is helpful

Senior Manager
Joined: 03 May 2013
Posts: 291
Location: India
Concentration: Operations, Human Resources
Schools: XLRI GM"18
GPA: 4
WE: Human Resources (Human Resources)
Re: A design flaw in deep-sea research submarines has led to the  [#permalink]

Show Tags

26 Jan 2014, 11:15
kinjiGC

the cost increases due to more insurance cost......
every time there is a failure due to insurance covered design flaw.... cost increases....
if it is not possible to identify reason of failure and therefore cannot attribute to insurance covered failure.....cost of insurance and hence overall cost of project will not increase....

hence, correct answer "c"......
SVP
Joined: 12 Dec 2016
Posts: 1645
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
Re: A design flaw in deep-sea research submarines has led to the  [#permalink]

Show Tags

19 Nov 2017, 00:00
this pattern is very common and important in gmat; test takers must know this.
There are many similar questions that use the same pattern; each has different level of difficulty.
This question is easier than 700 b/c C is too obvious.
Re: A design flaw in deep-sea research submarines has led to the &nbs [#permalink] 19 Nov 2017, 00:00
Display posts from previous: Sort by

A design flaw in deep-sea research submarines has led to the

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.