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16 May 2022, 01:30
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Difficulty:
5%
(low)
Question Stats:
91% (01:38) correct
9%
(01:52)
wrong
based on 101
sessions
History
Date
Time
Result
Not Attempted Yet
To boost the sales of its insurance policies, the Geico insurance company has decided to run a promotion wherein the company will offer competitive pricing for car insurance if a new car owner signs a contract to stay with the same company for at least five years. Another condition of the offer will be that changing the insurance policy, which includes using the policy on a different vehicle, in the middle of the contract period will result in heavy fines that will be more than the money the customer would have saved by choosing this insurance in the first place.
Which of the following, if true, most strongly supports the prediction that this promotion will have its intended effect?
A. The insurance company is just a start up and many people do not know this firm.
B. Most people will use a car for at least five years before they sell the car and obtain another one.
C. The previous promotional campaign run by the company achieved the desired goal.
D. Geico is planning to spend a huge amount of money on this promotional campaign.
E. The market for car insurance has been at an all-time high during the past year.
Which of the following, if true, most strongly supports the prediction that this promotion will have its intended effect?
A. The insurance company is just a start up and many people do not know this firm.
B. Most people will use a car for at least five years before they sell the car and obtain another one.
C. The previous promotional campaign run by the company achieved the desired goal.
D. Geico is planning to spend a huge amount of money on this promotional campaign.
E. The market for car insurance has been at an all-time high during the past year.
16 May 2022, 09:49
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So the meaning is fairly straight forward.
AIM : To boost insurance policies sales.
METHOD : competitive pricing if a new car owner makes a contract for 5 years.
DRAWBACK of CONTRACT : Changing policy in the middle will result in heavy fines.
Money lost by changing policy in between> Money saved by choosing the insurance policy.
Question Stem : Support the prediction ie the promotion will help to the boost sales of insurance company
Answer Choice Analysis:-
Choice A
Incorrect
The insurance company is just a start up and many people do not know this firm.- This statement if true wont help in any way to support that promotion will help to boost sales.
Rather it will act as a weakener.
Choice B
Correct
Most people will use a car for at least five years before they sell the car and obtain another one-
if this is true then most people will keep the cars for at-least 5 years after purchasing. Hence they will maintain the contract for at-least 5 years.
Choice C
Incorrect
The previous promotional campaign run by the company achieved the desired goal.
Success of previous promotional campaign is not our concern. Also we cannot assume that if previous PC was successful then even this one will be.
Choice D
Incorrect
Geico is planning to spend a huge amount of money on this promotional campaign.
There is no relation of SUCCESS of PC with its SPENDING.
Also we cannot say that the huge the amount of money spend on PC the better the chances of it being successful.
Choice E
Incorrect
The market for car insurance has been at an all-time high during the past year.
Market for car insurance during the past year is not our concern.
We cannot assume that if the market for PY was at ATH then it will be same for this year.
Thanks
Feedback Appreciated.
AIM : To boost insurance policies sales.
METHOD : competitive pricing if a new car owner makes a contract for 5 years.
DRAWBACK of CONTRACT : Changing policy in the middle will result in heavy fines.
Money lost by changing policy in between> Money saved by choosing the insurance policy.
Question Stem : Support the prediction ie the promotion will help to the boost sales of insurance company
Answer Choice Analysis:-
Choice A
Incorrect
The insurance company is just a start up and many people do not know this firm.- This statement if true wont help in any way to support that promotion will help to boost sales.
Rather it will act as a weakener.
Choice B
Correct
Most people will use a car for at least five years before they sell the car and obtain another one-
if this is true then most people will keep the cars for at-least 5 years after purchasing. Hence they will maintain the contract for at-least 5 years.
Choice C
Incorrect
The previous promotional campaign run by the company achieved the desired goal.
Success of previous promotional campaign is not our concern. Also we cannot assume that if previous PC was successful then even this one will be.
Choice D
Incorrect
Geico is planning to spend a huge amount of money on this promotional campaign.
There is no relation of SUCCESS of PC with its SPENDING.
Also we cannot say that the huge the amount of money spend on PC the better the chances of it being successful.
Choice E
Incorrect
The market for car insurance has been at an all-time high during the past year.
Market for car insurance during the past year is not our concern.
We cannot assume that if the market for PY was at ATH then it will be same for this year.
Thanks
Feedback Appreciated.
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