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# A recent spate of launching and operating mishaps with

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A recent spate of launching and operating mishaps with [#permalink]

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20 Feb 2007, 09:13
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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.
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shinewine

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20 Feb 2007, 09:34
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.

Based on this, i would guess

(C) The greater the performance demands placed on satellites, the more frequently those satellites break down
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20 Feb 2007, 10:34

A recent spate of launching and operating mishaps with television satellites led to a corresponding surge in claims against companies underwriting satellite insurance

This, in turn, has added to the pressure to squeeze more performance out of currently operating satellites.

C will create this cycle of more mishaps = more claims
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20 Feb 2007, 12:27
Looks like C is it...OA?
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21 Feb 2007, 14:32
'A'

Insurance premium is high, therefore satelite companies pressure to squeeze more performance out of currently operating satellites to balance the cost.
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21 Feb 2007, 21:47
Even I feel it's C.
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21 Feb 2007, 23:12
C
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23 Feb 2007, 08:07
AK wrote:
C

OA is 'C'
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23 Feb 2007, 15:20
C does not make complete sense as we do not know who is liable for fixing the sputniks. Also we do not know if this will make the insurer rais premiums. Oh well.
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23 Feb 2007, 17:55
C???

Question asks "best supports the conclusion that the cost of television satellites will continue to increase". C does not answer the question
23 Feb 2007, 17:55
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