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03 Aug 2012, 16:40
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B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
89% (01:29) correct
11%
(01:45)
wrong
based on 5125
sessions
History
Date
Time
Result
Not Attempted Yet
For similar cars and comparable drivers, automobile insurance for collision damage has always cost more in Greatport than in Fairmont. Police studies, however, show that cars owned by Greatport residents are, on average, slightly less likely to be involved in a collision than cars in Fairmont. Clearly, therefore, insurance companies are making a greater profit on collision damage insurance in Greatport than in Fairmont.
In evaluating the argument, it would be most useful to compare
(A) the level of traffic congestion in Greatport with the level of traffic congestion in Fairmont
(B) the cost of repairing collision damage in Greatport with the cost of repairing collision damage in Fairmont
(C) the rates Greatport residents pay for other forms of insurance with the rates paid for similar insurance by residents of Fairmont
(D) the condition of Greatport's roads and streets with the condition of Fairmont's roads and streets
(E) the cost of collision-damage insurance in Greatport and Fairmont with that in other cities
In evaluating the argument, it would be most useful to compare
(A) the level of traffic congestion in Greatport with the level of traffic congestion in Fairmont
(B) the cost of repairing collision damage in Greatport with the cost of repairing collision damage in Fairmont
(C) the rates Greatport residents pay for other forms of insurance with the rates paid for similar insurance by residents of Fairmont
(D) the condition of Greatport's roads and streets with the condition of Fairmont's roads and streets
(E) the cost of collision-damage insurance in Greatport and Fairmont with that in other cities
ID: 100843
OG2017 CR 570 P518
Automobile Insurance
Step 1: Identify the Question
The words evaluating the argument in the question indicate that this is an Evaluate the Argument question.
Step 2: Deconstruct the Argument
Ins prices: G>F
Collisions: G<F
© Profits G>F
Step 3: Pause and State the Goal
On Evaluate questions, the answer is something that would be important to know in order to determine whether the conclusion is valid. The argument presents information on two factors that likely influence profits (prices and the likelihood of accidents). Are there any other factors that could be important?
Step 4: Work from Wrong to Right
(A) The amount of traffic congestion does not directly affect the profits of insurance companies. There could be indirect effects (e.g. more traffic congestion could influence accident severity), but the correct answer should have a clear link to the conclusion, not an indirect one that would require several additional assumptions.
(B) CORRECT. The relative cost of repairing damage in the two cities directly influences profits. If repairs cost more in Greatport than Fairmont, this information would weaken the conclusion. If repairs in Greatport cost the same as or less than repairs in Fairmont, the conclusion would be strengthened.
(C) The conclusion is about the profits on collision damage insurance; information about other types of insurance is not relevant.
(D) The road conditions do not have a clear connection to profits. Road conditions could influence driving behavior (e.g. slower driving speeds) or accidents (e.g. greater damage) but the connection is not clear. On Evaluate questions, correct answer should directly relate to the conclusion without the need for additional information.
(E) The argument focuses on a comparison between Greatport and Fairmont. Comparisons to other cities are not important to this conclusion.
OG2017 CR 570 P518
Automobile Insurance
Step 1: Identify the Question
The words evaluating the argument in the question indicate that this is an Evaluate the Argument question.
Step 2: Deconstruct the Argument
Ins prices: G>F
Collisions: G<F
© Profits G>F
Step 3: Pause and State the Goal
On Evaluate questions, the answer is something that would be important to know in order to determine whether the conclusion is valid. The argument presents information on two factors that likely influence profits (prices and the likelihood of accidents). Are there any other factors that could be important?
Step 4: Work from Wrong to Right
(A) The amount of traffic congestion does not directly affect the profits of insurance companies. There could be indirect effects (e.g. more traffic congestion could influence accident severity), but the correct answer should have a clear link to the conclusion, not an indirect one that would require several additional assumptions.
(B) CORRECT. The relative cost of repairing damage in the two cities directly influences profits. If repairs cost more in Greatport than Fairmont, this information would weaken the conclusion. If repairs in Greatport cost the same as or less than repairs in Fairmont, the conclusion would be strengthened.
(C) The conclusion is about the profits on collision damage insurance; information about other types of insurance is not relevant.
(D) The road conditions do not have a clear connection to profits. Road conditions could influence driving behavior (e.g. slower driving speeds) or accidents (e.g. greater damage) but the connection is not clear. On Evaluate questions, correct answer should directly relate to the conclusion without the need for additional information.
(E) The argument focuses on a comparison between Greatport and Fairmont. Comparisons to other cities are not important to this conclusion.
03 Aug 2012, 17:28
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This argument assumes that the cost of insurance alone determines the profit a car insurance company stands to make. Specifically, the argument contends that an insurance company in Greatport that charges more than one in Fairmont will be more profitable, especially if drivers in Greatport are less likely than those in Fairmont to get into an accident.
However, there could be another factor besides cost of insurance and the likelihood of a collision that determines how much profit an insurance company stands to make. (B) provides a compelling alternative explanation: if car repairs are significantly more expensive in Greatport than in Fairmont, then Greatport insurance companies will not be more profitable than those in Fairmont. Thus in evaluating the argument we need to know the cost of car repairs.
Hope that helps!
However, there could be another factor besides cost of insurance and the likelihood of a collision that determines how much profit an insurance company stands to make. (B) provides a compelling alternative explanation: if car repairs are significantly more expensive in Greatport than in Fairmont, then Greatport insurance companies will not be more profitable than those in Fairmont. Thus in evaluating the argument we need to know the cost of car repairs.
Hope that helps!
05 Aug 2012, 22:49
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Given:
Car insurance in Greatport > Car insurance in Fairmont
(A) the level of traffic congestion in Greatport with the level of traffic congestion in Fairmont - Infomation on the traffic congestion in two cities does not provide information why there is difference in insurance costs - Incorrect
(B) the cost of repairing collision damage in Greatport with the cost of repairing collision damage in Fairmont - If the cost of repairing in Great port is greater than in fairmont, it is highly likely for the insurance companies to charge more for the car insurance - Correct
(C) the rates Greatport residents pay for other forms of insurance with the rates paid for similar insurance by residents of Fairmont - Out of scope - Incorrect
(D) the condition of Greatport's roads and streets with the condition of Fairmont's roads and streets - No direct relation between insurance costs and road conditions. Scope missing - Incorrect
(E) the cost of collision-damage insurance in Greatport and Fairmont with that in other cities - Irrelevant information - Incorrect
Car insurance in Greatport > Car insurance in Fairmont
(A) the level of traffic congestion in Greatport with the level of traffic congestion in Fairmont - Infomation on the traffic congestion in two cities does not provide information why there is difference in insurance costs - Incorrect
(B) the cost of repairing collision damage in Greatport with the cost of repairing collision damage in Fairmont - If the cost of repairing in Great port is greater than in fairmont, it is highly likely for the insurance companies to charge more for the car insurance - Correct
(C) the rates Greatport residents pay for other forms of insurance with the rates paid for similar insurance by residents of Fairmont - Out of scope - Incorrect
(D) the condition of Greatport's roads and streets with the condition of Fairmont's roads and streets - No direct relation between insurance costs and road conditions. Scope missing - Incorrect
(E) the cost of collision-damage insurance in Greatport and Fairmont with that in other cities - Irrelevant information - Incorrect
