Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
13 Mar 2025, 00:30
Kudos
Bookmarks
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
40% (02:27) correct
60%
(02:19)
wrong
based on 178
sessions
History
Date
Time
Result
Not Attempted Yet
Last year, AutoSafe sold a large number of new automobile insurance policies and luxury cars were stolen at a particularly high rate, resulting in a record number of theft-related insurance claims submitted to AutoSafe. This year, Autosafe will no longer sell insurance policies to owners of luxury cars. Therefore, unless Autosafe sells a record number of policies to owners of non-luxury cars, fewer theft-related claims will be submitted this year.
Which of the following is an assumption on which the argument relies?
(A) Each year, luxury cars are stolen at a higher rate than are non-luxury cars.
(B) Customers who purchased policies last year are no more likely to have their cars stolen this year than they were last year.
(C) This year, the theft rate of non-luxury cars will not be substantially higher than the theft rate of non-luxury cars last year.
(D) This year, the number of stolen cars recovered by AutoSafe policyholders will be greater than the number of stolen cars recovered by policyholders last year.
(E) The number of automobile thefts that affected AutoSafe policyholders last year was not nearly as high as the number of thefts that a§ected non-policyholders.
Which of the following is an assumption on which the argument relies?
(A) Each year, luxury cars are stolen at a higher rate than are non-luxury cars.
(B) Customers who purchased policies last year are no more likely to have their cars stolen this year than they were last year.
(C) This year, the theft rate of non-luxury cars will not be substantially higher than the theft rate of non-luxury cars last year.
(D) This year, the number of stolen cars recovered by AutoSafe policyholders will be greater than the number of stolen cars recovered by policyholders last year.
(E) The number of automobile thefts that affected AutoSafe policyholders last year was not nearly as high as the number of thefts that a§ected non-policyholders.
13 Mar 2025, 07:22
Kudos
Bookmarks
The argument concludes that unless AutoSafe sells a record number of policies to owners of non-luxury cars, there will be fewer theft-related claims this year. Implicitly, the argument relies on the idea that luxury cars are much more likely to be stolen than non-luxury cars. This is because last year's record number of claims was driven by the high theft rate of luxury cars, and by not insuring them this year, the overall number of claims should drop unless offset by many more policies issued to a group that, on average, experiences fewer thefts.
Option (A) states that "Each year, luxury cars are stolen at a higher rate than are non-luxury cars." This assumption is essential because if luxury cars were not more prone to theft, then not selling policies to their owners wouldn't necessarily lead to fewer claims. Therefore, (A) is the assumption on which the argument relies.
The correct answer is (A).
Option (A) states that "Each year, luxury cars are stolen at a higher rate than are non-luxury cars." This assumption is essential because if luxury cars were not more prone to theft, then not selling policies to their owners wouldn't necessarily lead to fewer claims. Therefore, (A) is the assumption on which the argument relies.
The correct answer is (A).
13 Mar 2025, 23:30
Kudos
Bookmarks
Bunuel
The argument suggests that by ceasing to sell insurance policies to luxury car owners, AutoSafe expects a reduction in theft-related claims, unless it sells a record number of policies to non-luxury car owners. This reasoning hinges on the assumption that luxury cars are stolen at a higher rate than non-luxury cars. Therefore, the correct answer is (A):
(A) Each year, luxury cars are stolen at a higher rate than non-luxury cars.
This assumption underlies the expectation that removing luxury cars from AutoSafe's policyholder base will lead to fewer theft-related claims, unless offset by increased sales to non-luxury car owners.
