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Answer A implies that the more frequent rate of collisions for ZNK, the more familiarity mechanics would have repairing this type of vehicle.

What is the basis for taking the logical step of saying a car that is harder to repair is less valuable? A Ferrari is hard to repair and cost a lot of money.
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Answer A implies that the more frequent rate of collisions for ZNK, the more familiarity mechanics would have repairing this type of vehicle.

What is the basis for taking the logical step of saying a car that is harder to repair is less valuable? A Ferrari is hard to repair and cost a lot of money.


Option (D) gives us that the ease of repair of ZNK automobiles is one factor that adds to their value. We have to take the options to be true. If option (D) is true, then it does explain why ZNK is more valuable though insurance companies pay less to repair it. We don't have to question whether option (D) is true or not.

The expected logic is that the more valuable a car, the more expensive its repairs. But the paradox is that ZNK is more valuable though its repairs are cheaper. This is what we have to explain. If it were true that easier repairs makes ZNK more valuable, then the paradox does get explained.

Also, note that when we compare one characteristic, we assume that all others are the same. For example, if you have two cars exactly the same but one is cheaper to repair while the other is more expensive to repair, which do you think will fetch a higher price in the market? The one that is cheaper to repair because you expect to spend less on it later.
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My thought process:

question: which of the following, if true, most strongly supports the insurance expert's explanation?.

what is the explanation? It is that XCT repairs are labor intensive, and labor cost is a significant factor.

none of the answer items listed supports/justifies the fact that XCT automobiles are labor intensive to repair.
Thus I was not able to justify selecting any of the answer options.

GMATNinja where am I going wrong in my thought process?
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My thought process:

question: which of the following, if true, most strongly supports the insurance expert's explanation?.

what is the explanation? It is that XCT repairs are labor intensive, and labor cost is a significant factor.

none of the answer items listed supports/justifies the fact that XCT automobiles are labor intensive to repair.

Thus I was not able to justify selecting any of the answer options.

GMATNinja where am I going wrong in my thought process?
As you point out, the insurance expert states that "repairs to XCT automobiles are especially labor-intensive, and labor is a significant factor in collision repair costs." But what is this statement supposed to explain?

Well, the insurance expert is explaining why "the average amount insurance companies will pay to repair a car involved in a collision is typically higher for XCT than for ZNK." In other words, the insurance expert's explanation is that insurance companies pay MORE for XCT repairs than ZNK repairs because XCT repairs are labor-intensive, and therefore costly.

Let's now take a look at answer choice (A):

Quote:
Which of the following, if true, most strongly supports the insurance expert's explanation?

A. ZNK automobiles are involved in accidents more frequently than XCT automobiles.
Frequency of accidents doesn't relate to the average cost of repairs for a ZNK or XCT cars in any clear way. Eliminate (A).

Quote:
B. The cost of routine maintenance for the ZNK is about the same as for the XCT.
If anything this weakens the argument. If routine maintenance is the same for both car brands, this certainly doesn't help the explanation that XCT repairs are MORE costly than ZNK repairs. Eliminate (B).

Quote:
C. There are more automobile mechanics who specialize in XCT repairs than in ZNK repairs.
Again, this might provide a slight weakener, but certainly doesn't strengthen the explanation. If anything, you'd think that fewer ZNK mechanics might cause ZNK repairs to be MORE expensive than XCT repairs, since labor for ZNK's might be in shorter supply than labor for XCT's. Eliminate (C).

Quote:
D. The ease of repair of ZNK automobiles is one factor that adds to their value.
The insurance expert's explanation hinges on the idea that XCT repairs are MORE expensive than ZNK repairs. But the expert only tells us that XCT repairs are especially expensive. Notice that does not necessarily make them MORE expensive than ZNK repairs. Maybe ZNK repairs are also especially expensive? If that were the case, that would significantly weaken the explanation.

So (D) strengthens the explanation. We already know that XCT repairs are ESPECIALLY expensive. Now (D) adds that the "ease of ZNK repairs adds to their value." This strengthens the idea that XCT repairs are more labor-intensive and therefore more costly than ZNK repairs. Let's hold on to (D).

Quote:
E. XCT automobiles are more likely to be stolen than ZNK automobiles.
The explanation relates to why insurance companies pay more for XCT repairs, not how much they pay to replace stolen automobiles. Since automobile theft is irrelevant, we can eliminate (E).

That leaves us with (D), the right answer.

I hope that helps!
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KarishmaB MartyMurray Can you please explain why option B is wrong ?

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The XCT automobile is considered less valuable than the ZNK automobile, because insurance companies pay less, on average, to replace a stolen XCT than a stolen ZNK. Surprisingly, the average amount insurance companies will pay to repair a car involved in a collision is typically higher for the XCT than for the ZNK. One insurance expert explained that repairs to XCT automobiles are especially labor-intensive, and labor is a significant factor in collision repair costs.

The passage first presents a surprising situation and then presents the following explanation of an expert for that surprising situation:

repairs to XCT automobiles are especially labor-intensive, and labor is a significant factor in collision repair costs

The passage provides no support for that explanation but the question stem asks for some.

Which of the following, if true, most strongly supports the insurance expert's explanation?

Although the passage presents a seemingly paradoxical situation, this is a Strengthen question, and the correct answer will support the expert's explanation. In other words, it will help to confirm that the expert's explanation is correct.

A. ZNK automobiles are involved in accidents more frequently than XCT automobiles.

This fact does not help to confirm the explanation.

After all, there's basically no connection between the fact that ZNK automobiles are involved in more accidents and the idea that the reason why insurance companies will pay more for repairs to the XCT than for repairs to the ZNK is that [color=#00369b]repairs to XCT automobiles are especially labor-intensive, and labor is a significant factor in collision repair costs.[/color]

Eliminate.

B. The cost of routine maintenance for the ZNK is about the same as for the XCT.

This choice is a little tricky because we could get the impression that this choice serves to eliminate an alternative reason why insurance companies pay more for repairs to the XCT than for to the ZNK. In other words, we could think something along the lines of, "If the cost of routine maintenance is the same for both types of automobiles, then we know that the reason why insurance companies pay out more to XCT owners is not that routine maintenance costs are different. So, this choice helps to confirm that the reason given by the expert is correct by eliminating an alternative reason."

However, this choice does not actually present an alternative reason why insurance companies pay more for repairs to the XCT than for repairs to the ZNK because routine maintenance costs and repair costs are two different things.

Insurance companies pay for repair costs related to unexpected damage to a car. In contrast, routine maintenance costs are not related to unexpected damage. Rather, they are related to maintaining a car used normally, and insurance companies don't pay for routine maintenance.

So, this comparison between the costs of routine maintenance for the two types of cars is basically unrelated to insurance company payouts.

Eliminate.

C. There are more automobile mechanics who specialize in XCT repairs than in ZNK repairs.

This choice has no virtually no effect on the case for the expert's explanation.

After all, regardless of how many mechanics specialize in XCT repairs, it is still the case that repairs to XCT automobiles are labor intensive, and that characteristic can make them more costly than repairs to ZNK automobiles.

I guess we might consider this choice a slight weakener since we could decide that a greater number of mechanics for XCT repairs means that the supply-demand dynamic makes per hour labor costs for XCT repairs lower than per hour labor costs for ZNK repairs. In that case, even if XCT repairs are more labor intensive, labor costs for XCT repairs could be no higher than labor costs for ZNK repairs, meaning that labor costs are not the reason why insurance companies pay more for XCT repairs than for ZNK repairs.

At the same time, even if per hour labor costs are lower for XCT repairs, the fact that the repairs are labor intensive could still explain why insurance companies pay out more for XCT repairs.

In any case, this choice is certainly not a strengthener.

Eliminate.

D. The ease of repair of ZNK automobiles is one factor that adds to their value.

This choice is interesting.

After all, if this choice is true, then we have at least some confirmation that ZNK automobiles are easier to repair than XCT automobiles since XCT automobiles have lower values than ZNK automobiles, meaning that there's some reason why XCT automobiles are less valuable, and that reason could be that it's easier to repair ZNK automobiles, as suggested by what this choice says.

In other words, this choice helps to connects the difference in value of the two types of automobiles to the difference in repair costs and thus confirms that there is indeed a difference in repair costs, which in turn helps to confirm that relatively high repair costs are what makes XCT automobiles both worth less and such that insurance companies pay more for repairs to them.

Keep.

E. XCT automobiles are more likely to be stolen than ZNK automobiles.

The fact that XCT automobiles are more likely to be stolen than ZNK automobiles might explain why insurers pay out more in total to XCT owners than to ZNK owners. After all, in that case, insurance companies would pay more not only for repairs but also for replacement of XCT automobiles.

However, an automobile being stolen has basically nothing to do with an insurance company paying more for repairs because of higher labor costs.

Eliminate.

Correct answer: D
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