Dear guerrero25,
I'm happy to help with this.

The number of traffic violations per capita: Speedville > Lazytown
BUT
gross amount paid in fines: Lazytown > Speedville

Notice we have a subtle issues of a rate, a per capita number, vs. a gross number. This is a contrast that the GMAT loves to explore.

(A) the fines for comparable violations in Lazytown were higher than those in Speedville
This is certainly possible. They have expensive fines in Lazytown, so even though fewer people got tickets, they coughed up more for the fines. This could be true, so it is not correct.

(B) The population in Lazytown is greater than the population in Speedville
Always a possibility in a rate vs. gross question. If Speedville has 200 people, then close to 100% could get tickets, but if Lazytown has 200,000 people, then only 7% would have to get tickets, and it would be way more than the number who got tickets in Speedville. This could be true, so it is not correct.

(C) The average cost per violation was lower in Speedville
This easily could be true. They charge more for speeding in Lazytown, so that's why Lazytown got more money for fewer tickets. This could be true, so it is not correct.

(D) The average cost per violation was lower in Lazytown
Again, think of the small Speedville vs big Lazytown scenario.
Speedville = 200 people
Lazytown = 200,000 people
Speedville: 100% of people got tickets, so 200 tickets issued.
Lazytown: 10% of people got tickets, so 2000 tickets issued.
Speedville: average ticket fine = $200, so $40,000 in revenue collected
Lazytown: average ticket fine = $100, so $200,000 in revenue collected
Thus, this statement could be true, so it's not correct.

(E) The average revenue per day from traffic violations was lower in Lazytown
We are told that "the people in Lazytown paid more in fines last year." In other words, the gross amount in fines paid to the municipality was higher in Lazytown than it was in Speedville. That necessarily means that, if we divide both numbers by 365, the average per-day revenue in Lazytown MUST be higher. There is no way that statement (E) possibly could be true. Therefore, this is the correct answer.

Does all this make sense?
Mike
_________________

I did not get the explanation why E is answer.
Can anyone shed some light. Tia.

Posted from my mobile device

As per the stimulus, the people in Lazytown paid more fines. That means than Speedville paid less fines than Lazytown.

So total fine paid by Speedville is less than Lazytown in a year. If we divide the total fine by 365 in both the states, the average fine paid by Speedville will be less as both the fines are divided by 365 days.

When we see option E, it's the opposite of what is stated and hence cannot be true.

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