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It cannot be E as it is out of scope.
Because the question stem asks about challenge to DOT's proposal but the statement E talks about automobile dealer's profit.
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Pre-thinking:

Conclusion:In order to save lives, the Department of Transportation (DOT) is considering requiring automobile manufacturers to install air bags of this design in all cars produced after 1998.

In other words, "requiring automobile manufacturers to install air bags of this design in all cars produced after 1998" will "save lives".

Premises: Traffic safety experts predict that the installation of newly designed air bags in all cars in the United States would reduce the average number of fatalities per traffic accident by 30 percent.

The question asks us to weaken the argument, hence we are looking for that answer option that will throw doubts on the saving of lives by this method. Let us analyze the answer options:

(A) Air bags of the new design are more given to being inadvertently triggered, an occurrence that can sometimes result in fatal traffic accidents. Correct answer. This brings the possibility of increased fatalities due to the newly designed airbags, thus throwing question marks on whether lives will be saved.

(B) The DOT is planning to require automobile manufacturers to produce these air bags according to very strict specifications. This does not doubt the saving of lives. Eliminate.

(C) After installing air bags in new cars, automobile manufacturers will experience an increase in sales. This does not doubt the saving of lives. Eliminate.

(D) The proposed air bag installation program will adversely affect the resale of cars manufactured prior to 1998. This does not doubt the saving of lives. Eliminate.

(E) As production costs increase, the profits of many domestic automobile dealers show a marked decrease. This does not doubt the saving of lives. Eliminate.

Hope this helps.
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Why not C?
In the text, the experts said that 30% of lives can be saved, then, we can infeer that more lives will be saved than lives will be lost by the instalation of the airbags.
The increase of sales would result in a greater number of cars, and then, a greater number of accidents.
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how does it affects that sometimes airbag comes out abruptly and led to serious fatalities, when its already mentioned that overall fatalities will be 30% less. Doesnt the premise negate option A?
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PrafulKashyap
how does it affects that sometimes airbag comes out abruptly and led to serious fatalities, when its already mentioned that overall fatalities will be 30% less. Doesnt the premise negate option A?

Hi Praful

The stimulus does not state that "overall fatalities will be 30% less" as you have put it. The stimulus states that the new airbags would "reduce the average number of fatalities per traffic accident by 30 percent". This is talking about the conditional probability of fatality given that an accident occurs.

Option (A) talks about a situation where the new airbags will be "inadvertently triggered" ie; without an accident. So while the new airbags would reduce fatalities when accidents occur, they will also cause accidents of their own, which may increase overall fatalities (at least, there will be more fatalities than the reduced 70% number would suggest). Hence this option challenges the DOT's reasoning and proposal.

Hope this clarifies.
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sargam0101
here the SHORTEST CHALLENGE has been asked. why not E

because E shows challenges faced by Automobile industry and not DOT. challenges of automobile industry is of no concern to DOT.
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The DOT's proposal is based on the prediction that the new air bags would reduce fatalities by 30%. The strongest challenge to this proposal would be evidence that contradicts this prediction or introduces a new risk that could offset the expected benefits.

Option (A): "Air bags of the new design are more given to being inadvertently triggered, an occurrence that can sometimes result in fatal traffic accidents."
This option directly challenges the safety benefit of the new air bags. If the new design is more likely to be inadvertently triggered and could cause fatal accidents, this risk might outweigh the expected reduction in fatalities. This introduces a significant new danger that could undermine the purpose of the DOT’s proposal, making (A) the strongest challenge to the proposal.
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Increase in sales = increase in accidents would not stand if there are better safety standards by virtue of the installed airbags.
febazan
Why not C?
In the text, the experts said that 30% of lives can be saved, then, we can infeer that more lives will be saved than lives will be lost by the instalation of the airbags.
The increase of sales would result in a greater number of cars, and then, a greater number of accidents.
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