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# The price of health insurance as a percentage of an individual’s overa

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Math Expert
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The price of health insurance as a percentage of an individual’s overa  [#permalink]

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30 Jul 2018, 01:12
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6
00:00

Difficulty:

55% (hard)

Question Stats:

66% (01:50) correct 34% (01:41) wrong based on 263 sessions

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The price of health insurance as a percentage of an individual’s overall monthly income does not necessarily indicate quality of care. If it did, individuals who spent a greater percentage of their income on health insurance would receive better quality of care, or vice versa.

If the statements above are all true, which of the following can be properly inferred on the basis of them?

A. If individuals receiving free or reduced cost health insurance from the government were removed from the sample, there would be a strong correlation between cost and quality of care.

B. Reducing an individual’s spending on health insurance as a percent of their income will not necessarily lead to lower quality of care.

C. Looking at the dollar amount spent on health insurance rather than the percentage would show a correlation between amount of money spent and quality of care.

D. It is probable that individuals who spend more on health insurance in fact get a lower quality of care than do those who spend less on health care.

E. Individuals who spend the greatest percentage of their income on health insurance never receive high quality of care from medical providers.

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Re: The price of health insurance as a percentage of an individual’s overa  [#permalink]

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30 Jul 2018, 02:04
The price of health insurance as a percentage of an individual’s overall monthly income does not necessarily indicate quality of care. If it did, individuals who spent a greater percentage of their income on health insurance would receive better quality of care, or vice versa.

Type- inference
Boil it down - The above argument does not take into the differences in overall monthly income of individuals

A. If individuals receiving free or reduced cost health insurance from the government were removed from the sample, there would be a strong correlation between cost and quality of care. - Incorrect

B. Reducing an individual’s spending on health insurance as a percent of their income will not necessarily lead to lower quality of care. - Correct - If it did, individuals who spent a greater percentage of their income on health insurance would receive better quality of care, or vice versa.

C. Looking at the dollar amount spent on health insurance rather than the percentage would show a correlation between amount of money spent and quality of care.- Incorrect - may be true but need not be true

D. It is probable that individuals who spend more on health insurance in fact get a lower quality of care than do those who spend less on health care. - Incorrect - we are given money spent on insurance as a percentage of monthly income

E. Individuals who spend the greatest percentage of their income on health insurance never receive high quality of care from medical providers. - Incorrect -- never is too extreme

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Re: The price of health insurance as a percentage of an individual’s overa  [#permalink]

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30 Jul 2018, 21:13
Bunuel wrote:
The price of health insurance as a percentage of an individual’s overall monthly income does not necessarily indicate quality of care. If it did, individuals who spent a greater percentage of their income on health insurance would receive better quality of care, or vice versa.

If the statements above are all true, which of the following can be properly inferred on the basis of them?

A. If individuals receiving free or reduced cost health insurance from the government were removed from the sample, there would be a strong correlation between cost and quality of care.

B. Reducing an individual’s spending on health insurance as a percent of their income will not necessarily lead to lower quality of care.

C. Looking at the dollar amount spent on health insurance rather than the percentage would show a correlation between amount of money spent and quality of care.

D. It is probable that individuals who spend more on health insurance in fact get a lower quality of care than do those who spend less on health care.

E. Individuals who spend the greatest percentage of their income on health insurance never receive high quality of care from medical providers.

VERITAS PREP OFFICIAL SOLUTION:

Whenever a GMAT question asks for something that can be "properly inferred" from a critical reasoning argument, remember that your job is to fully understand the argument presented and then look for the answer choice that is guaranteed by the information presented. Remember, the information doesn't have to be interesting - it just needs to be something that must be true given the information presented.

In this case, you are told there's no correlation between the percentage of an individual's income spent on healthcare and the quality of healthcare they receive. (Further, if it did exist, the argument states that either individuals who spend a greater percentage of their income on health insurance would get better or worse quality of care.)

The only real information that you have here is the fact that increased (or decreased) spending on health insurance as a percentage of income does not "necessarily indicate quality of care." You don't have any information on absolute amounts spent on health insurance or about the health insurance itself. From this, you can eliminate (A), which deals with eliminating a particular type of health insurance from the sample and (C), which deals with absolute dollar amounts. Choice (D) can also be eliminated since you are told that there is no correlation in either direction.

Between (E) and (B), choice (E) can be eliminated since there is just no way to prove that individuals who spend a large percentage of their income on health insurance never get quality care from medical providers - the entire point of the argument is that there is no correlation.

Choice (B) must be correct. If there is no correlation between spending on health insurance as a percentage of income, then reducing spending on health insurance as a percent of income may or may not affect quality of care. The words here "will not necessarily lead to lower quality of care" are particularly important, since it links back to the argument that there is just no way to tell.
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Re: The price of health insurance as a percentage of an individual’s overa  [#permalink]

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07 Oct 2018, 06:52
DavidTutorexamPAL
why not option b?
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Re: The price of health insurance as a percentage of an individual’s overa  [#permalink]

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07 Oct 2018, 07:38
manjot123 wrote:
DavidTutorexamPAL
why not option b?

Dear manjot123

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Re: The price of health insurance as a percentage of an individual’s overa   [#permalink] 07 Oct 2018, 07:38
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