It is currently 24 Jun 2017, 03:49

### 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 June
Open Detailed Calendar

# A recent spate of launching and operating mishaps with

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

### Hide Tags

SVP
Joined: 16 Jul 2009
Posts: 1511
Schools: CBS
WE 1: 4 years (Consulting)
A recent spate of launching and operating mishaps with [#permalink]

### Show Tags

05 Sep 2009, 06:18
00:00

Difficulty:

(N/A)

Question Stats:

100% (02:01) correct 0% (00:00) wrong based on 7 sessions

### HideShow timer Statistics

16. 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.
_________________

The sky is the limit
800 is the limit

GMAT Club Premium Membership - big benefits and savings

Senior Manager
Joined: 08 Jan 2009
Posts: 326
Re: recent spate [#permalink]

### Show Tags

05 Sep 2009, 09:22
Conclusion : Increase in Premium -> increased pressure to squeeze more performance out of currently operating satellites

(C) The greater the performance demands placed on satellites, the more frequently those satellites break down.

More break down -> more claim and hence will shot up the premium
Verbal Forum Moderator
Joined: 02 Aug 2009
Posts: 4559
Re: recent spate [#permalink]

### Show Tags

05 Sep 2009, 11:52
C
_________________

Absolute modulus :http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html

Intern
Joined: 17 Oct 2012
Posts: 19
Re: A recent spate of launching and operating mishaps with [#permalink]

### Show Tags

01 Nov 2013, 17:23
I am confused between A and C.
A] If launches are more expensive, less are launched. Thus premiums would obviously be high
C] Greater performance demands does not necessarily leads to break down. They should be designed to perform based on their specifications. They would not work rather than breaking down. Breaking down cannot be tied to performance. It could happen otherwise too.

Can somebody explain why A is wrong choice?
Re: A recent spate of launching and operating mishaps with   [#permalink] 01 Nov 2013, 17:23
Similar topics Replies Last post
Similar
Topics:
The spate of terrorist acts against airlines and their passengers rais 1 10 Jun 2017, 12:05
4 Following a major mishap, a pilgrim spot in the country had 2 31 Oct 2015, 13:16
5 Not all successful product launches depend on filling an 11 24 Nov 2015, 06:19
71 A year ago, Dietz Foods launched a yearlong advertising 47 01 May 2017, 22:47
11 A recent spate of launching and operating mishaps with 16 01 May 2017, 19:11
Display posts from previous: Sort by

# A recent spate of launching and operating mishaps with

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

 Powered by phpBB © phpBB Group and phpBB SEO 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®.