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# During past yr, Pro-Tect insurance company's total payout on

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Manager
Joined: 22 Apr 2004
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During past yr, Pro-Tect insurance company's total payout on [#permalink]

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01 Dec 2005, 18:33
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During past yr, Pro-Tect insurance company's total payout on car theft claims has been larger than the company can afford to sustain. Pro-Tect does not reduce the number of car theft policies it carries, so it cannot protect itself against large payouts that way. Therefore, P decided to offer discounts to car theft policies whose cars have antitheft devices.

Many policyholders respond to discounts by installing such devices, since the amt of the discount will, within 2 yrs, typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect's plan is likely to reduce its annual payout.

In argument above, the 2 portions in boldface play which of the following roles?

(a) The first and second are both evidence offered by argument as support for its main conclusion
(b) The first presents a problem a response to which the argument assesses, the second is the judgement reached by that assessment
(c) The first is the point the argument seeks to establish, the secound is the judgement that the argument uses to support position
(d) The first is a development that argument seeks to explain, the second is a prediction the argument makes in support of the explanation it offers
(e) The first presents a development whose likely outcome is at issue in argument, the second is the judgement the argument uses in support of its conclusion about that outcome.

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GMAT Club Legend
Joined: 07 Jul 2004
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01 Dec 2005, 20:11
(a) first bf is not a conclusion

(b) The first presents a problem a response to which the argument assesses, the second is the judgement reached by that assessment

(c) first bf is not a point the main body of the passage seeks to explain

(d) same as c

(e) first bf is definitely not a 'prediction' of a future developement

Ans: B.

B is best as first bf is a problem that is highlighted - 'payout on car theft claims has been larger than the company can afford to sustain.'. The main body goes on to assess this problem. The 2nd bf is a conclusion based on thsi assessment.

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Director
Joined: 27 Jun 2005
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01 Dec 2005, 20:29
B

a) Second BF is conclusion ....not evidence
c) First is not the point the argument seeks to establish
d) First is not a development that argument explains ..its a evidence ..
e) second is not a judgement insupport of conclusion ..it itself is conclusion

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SVP
Joined: 05 Apr 2005
Posts: 1708

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Re: CR: BF pro-tect insurance co [#permalink]

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01 Dec 2005, 20:30
Down to B and D, but B is more reasonable.

So B.

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SVP
Joined: 05 Apr 2005
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Re: CR: BF pro-tect insurance co [#permalink]

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02 Dec 2005, 19:35
Seems nobody is interested in BF CR. but the bitter fact is at least one or two BF question(s) is(are) likely to appear in real test....

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Manager
Joined: 05 Nov 2005
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03 Dec 2005, 03:20
I am also undecided between B and D, and would choose D because the word likely in the second bold face sentence induces me to believe that this is a prediction.

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SVP
Joined: 28 May 2005
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Location: Dhaka

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03 Dec 2005, 04:23
ywilfred wrote:
(a) first bf is not a conclusion

(b) The first presents a problem a response to which the argument assesses, the second is the judgement reached by that assessment

(c) first bf is not a point the main body of the passage seeks to explain

(d) same as c

(e) first bf is definitely not a 'prediction' of a future developement

Ans: B.

B is best as first bf is a problem that is highlighted - 'payout on car theft claims has been larger than the company can afford to sustain.'. The main body goes on to assess this problem. The 2nd bf is a conclusion based on thsi assessment.

I agree 100%. B is the answer.
_________________

hey ya......

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Manager
Joined: 22 Apr 2004
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04 Dec 2005, 15:33
OA is B.

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04 Dec 2005, 15:33
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