Here's the
official explanation provided by the GMAC for this question:
This sentence describes reported estimates of how many HMOs will be profitable this year and how many were last year. The underlined portion of the sentence must clearly compare this year's percentage of profitable HMOs to last year's. Interstudy is described as a single organization, so the singular
it would be appropriately used to refer to it. The phrase
only 36 percent of the nation's 607 HMOs is a plural subject referring to multiple HMOs, and thus should be used with a plural verb form.
Option A: The plural
they has no clear antecedent. It could confusingly appear to refer to HMOs rather than to Interstudy. If
they is supposed to refer to Interstudy, the phrasing
According to Interstudy … they estimate is oddly redundant. The phrasing
in comparison to last year… this year 73 percent will be is verbose and seems to compare last year not with this year, but with 73 percent of HMOs being profitable this year. The plural subject
only 36 percent of the nation's 607 HMOs does not agree with the singular
was.Option B: The antecedent of the pronoun
they is unclear;
they rather than referring to Interstudy, confusingly appears to refer to HMOs, which absurdly seem to be
compared to only 36 percent of the nation's 607 HMO's being profitable last year.
Option C: Correct. The sentence straightforwardly states what percent of the HMOs were profitable last year, according to Interstudy. The plural subject
only 36 percent of the nation's 607 HMOs agrees with the plural verb form
were. After the semicolon, the singular
it is used correctly to refer to the single organization Interstudy.
Option D: If the pronoun
it is meant to refer to Interstudy, the phrasing
According to Interstudy … it estimates is oddly redundant. The subjunctive
would be does not agree with the indicative present tense
estimates, given that what is being estimated is an actual state of affairs. The pronoun
that has no clear antecedent.
Option E: The antecedents of
they and
it are unclear. The final clause is ambiguous; it is unclear whether
this year modifies
they estimate or
to be 73 percent.
The correct answer is C.
Please note that I'm not the author of this explanation. I'm just posting it here since I believe it can help the community.
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