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For similar homes and comparable residents, home insurance for theft

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Intern
Intern
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B
Joined: 06 Jul 2016
Posts: 44

Kudos [?]: 38 [0], given: 2

Location: India
Concentration: Operations, General Management
GMAT 1: 610 Q49 V25
WE: General Management (Energy and Utilities)
For similar homes and comparable residents, home insurance for theft [#permalink]

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New post 14 Oct 2016, 23:59
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

87% (00:57) correct 13% (01:13) wrong based on 89 sessions

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For similar homes and comparable residents, home insurance for theft has always cost more in Springfield than in Shelbyville. Police studies, however, show that homes owned by Springfield residents are, on average, slightly less likely to be robbed than homes in Shelbyville. Clearly, therefore, insurance companies are making a greater profit on home theft insurance in Springfield than in Shelbyville.

In evaluating the argument, it would be most useful to compare

A. the population density of Springfield with the population density of Shelbyville

B. the cost of compensating theft losses in Springfield with the cost of compensating theft losses in Shelbyville

C. the rates Springfield residents pay for auto insurance with the rates paid for auto insurance by residents of Shelbyville

D. the condition of Springfield's roads and streets with the condition of Shelbyville's roads and streets

E. the cost of home theft insurance in Springfield and Shelbyville with that in other cities
[Reveal] Spoiler: OA

Kudos [?]: 38 [0], given: 2

BSchool Forum Moderator
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S
Joined: 28 Nov 2014
Posts: 924

Kudos [?]: 201 [0], given: 79

Concentration: Strategy
Schools: Fisher '19 (M)
GPA: 3.71
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Re: For similar homes and comparable residents, home insurance for theft [#permalink]

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New post 15 Oct 2016, 01:25
If the cost of compensating the home theft losses in Springfield is more than the cost of compensating the home theft losses in Shelbyville, even when the homes owned by Springfield residents are slightly less likely to be robbed than the homes owned by Shelbyville residents, we cannot assuredly say if the home insurance companies are making a greater profit in Springfield. Taking this option to two extremes strengthen as well as weaken the argument!

Therefore, pick D.

Kudos [?]: 201 [0], given: 79

Manager
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G
Joined: 06 Jan 2015
Posts: 180

Kudos [?]: 91 [0], given: 429

Location: India
Concentration: Operations, Finance
GPA: 3.35
WE: Information Technology (Computer Software)
Re: For similar homes and comparable residents, home insurance for theft [#permalink]

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New post 01 Aug 2017, 22:18
D.the condition of Springfield's roads and streets with the condition of Shelbyville's roads and streets-Out of scope

Ans is B
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आत्मनॊ मोक्षार्थम् जगद्धिताय च

Kudos [?]: 91 [0], given: 429

Re: For similar homes and comparable residents, home insurance for theft   [#permalink] 01 Aug 2017, 22:18
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For similar homes and comparable residents, home insurance for theft

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