A particular company makes a system that is installed in the engine

Question

A particular company makes a system that is installed in the engine block of a car and, if that car is stolen, relays the car’s location to police via satellite. The recovery rate of stolen cars with this device is ninety percent. This system helps everyone because it is impossible for a thief to tell which cars it is installed on. For these reasons, insurance companies try to encourage customers to get this system by offering lower rates to those who have the system. Competing systems include brightly colored steel bars that attach to the steering wheel and loud alarms that go off when the car is tampered with. These systems simply encourage thieves to steal different cars, and when cars with these devices are stolen, the police rarely recovery them.

Which of the following is the most logical conclusion to the author’s premises?

(A) Insurance companies should give the same discount to car owners that have any protective system because their cars are less likely to be stolen.
(B) The police shouldn’t allow car owners to install the loud sirens on their cars because everyone simply ignores the sirens anyway.
(C) Car owners with the system that relays location to the police should prominently advertise the fact on the side window of their cars.
(D) Thieves should simply steal the cars with loud alarms or bright steel bars because those cars probably wouldn’t also have the more effective system installed.
(E) Insurance companies should give less of a discount, or no discount at all, to the siren and steering wheel systems because they aren’t as effective as the relay system.

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NextstopISB · Answer

The argument highlights that the satellite-based system is highly effective, with a 90% recovery rate, and benefits everyone by making it impossible for thieves to identify which cars have it. On the other hand, competing systems like alarms and steering wheel locks merely encourage thieves to steal other cars, and stolen cars with these devices are rarely recovered.

To find the most logical conclusion, we should look for an option that follows from the given premises.

Evaluating the Answer Choices:

(A) Suggests that insurance companies should give the same discount for any protective system. This contradicts the argument, which states that only the satellite system is truly effective, while the others merely displace crime.

(B) Argues that loud sirens shouldn’t be allowed because people ignore them. While this may be true, the argument does not discuss whether sirens are annoying or ignored—it focuses on effectiveness in car recovery.

(C) Suggests that owners should advertise the satellite system on their cars. However, this would make it easier for thieves to avoid those cars, undermining the system's deterrent effect.

(D) Suggests that thieves should steal cars with alarms or steering wheel bars. While this follows the logic that those cars are less likely to have the satellite system, the argument does not advocate for thieves—it’s about what insurance companies should do.

(E) Suggests that insurance companies should offer lower or no discounts for the ineffective sirens and steering wheel systems. This aligns with the argument's key point: only the satellite system meaningfully increases car recovery, so insurance companies should differentiate their incentives accordingly.

Best Answer:

(E) Insurance companies should give less of a discount, or no discount at all, to the siren and steering wheel systems because they aren’t as effective as the relay system.
This conclusion logically follows from the premise that only the satellite-based system significantly improves stolen car recovery rates.

Gmat750aspirant · Answer

The argument shows the relay system is highly effective, while alarms and steering wheel bars are not. Since insurance companies offer discounts for effective theft prevention, they should not give the same discount for ineffective systems.

(E) is correct because it logically follows that insurance companies should reduce or eliminate discounts for less effective systems.

(E) is correct because it logically follows that insurance companies should reduce or eliminate discounts for less effective systems.

ManifestDreamMBA · Answer

System A - installed in the engine block(not evident), 90% recovery rate, insurance company encouragement
System B - brightly colored steel bars that attach to the steering wheel and loud alarms(evident), encourages to thieves to steal different cars, but rarely recovered

(A) Insurance companies should give the same discount to car owners that have any protective system because their cars are less likely to be stolen.
 Cannot say the cars with any of these systems are less likely to be stolen. System A in cars is not evident whereas system B is, so likelihood of being stolen for cars with system A could be more.

(B) The police shouldn’t allow car owners to install the loud sirens on their cars because everyone simply ignores the sirens anyway.
 There is nothing supporting police not allowing system B or the fact that the siren gets ignored

(C) Car owners with the system that relays location to the police should prominently advertise the fact on the side window of their cars.
 The "discreetness" of cars with system A could be an advantage as thieves don't know they are stealing these cars. And when they do, there's a 90% chance of recovery. There's no reason to advertise that the car has system A

(D) Thieves should simply steal the cars with loud alarms or bright steel bars because those cars probably wouldn’t also have the more effective system installed.
 There's nothing stopping people from getting both the systems installed.

(E) Insurance companies should give less of a discount, or no discount at all, to the siren and steering wheel systems because they aren’t as effective as the relay system.
 This makes sense. "Effective" for insurance companies to avoiding to pay, i.e. having the best rate of recovery. Since cars with system B aren't as effective (inspite of the initial barrier, if thieves are able to steal, the car is rarely recovered)

Bunuel · Answer

OFFICIAL EXPLANATION:

E. This critical-reasoning question requires you to draw a conclusion from the premises included in the argument.

Look for an answer choice that addresses all the information in the premises. You can eliminate conclusions that are off topic or incomplete.

Eliminate choices that don’t include all the elements of the argument. Choices (B), (C), and (D) don’t mention the insurance companies that are the subject of one of the premises. This leaves you with Choice (A) and Choice (E), which offer nearly opposite conclusions. The premises indicate that one of the reasons insurance companies like the engine-block system is that thieves don’t know which cars have it installed. Choice (A) concludes that cars with any protective system, including alarms and steering-wheel bars, should get a discount because those cars are less likely to be stolen. This conclusion doesn’t flow logically from the premises, however, because the reasons given for the insurance discounts are a high recovery rate of stolen vehicles and the general deterrent to all car thefts. Neither of these advantages comes from the alarms or steering-wheel bars. Choice (E) addresses all the premises and logically concludes the argument, making it the correct answer.

A particular company makes a system that is installed in the engine

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GMAT Critical Reasoning (CR) Questions

A particular company makes a system that is installed in the engine

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