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Two computer companies, Garnet and Renco, each pay Salcor to provide h

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Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 08 Jan 2012, 02:34
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Two computer companies, Garnet and Renco, each pay Salcor to provide health insurance for their employees. Because early treatment of high cholesterol can prevent strokes that would otherwise occur several years later, Salcor encourages Garnet employees to have their cholesterol levels tested and to obtain early treatment for high cholesterol. Renco employees generally remain with Renco only for a few years, however. Therefore, Salcor lacks any financial incentive to provide similar encouragement to Renco employees.

Which of the following, if true, most seriously weakens the argument?

(A) Early treatment of high cholesterol does not eliminate the possibility of a stroke later in life.

(B) People often obtain early treatment for high cholesterol on their own.

(C) Garnet hires a significant number of former employees of Renco.

(D) Renco and Garnet have approximately the same number of employees.

(E) Renco employees are not, on average, significantly younger than Garnet employees.

[Reveal] Spoiler:
Attachment:
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[Reveal] Spoiler: OA

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Last edited by mydreammba on 11 Jan 2012, 04:10, edited 1 time in total.

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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 09 Jan 2012, 02:48
I came close two answers C and D.....and the answer is C .....but Can anyone please explain why the answer is not C.......

?????

the answer is C or the answer is C ?

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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 09 Jan 2012, 17:49
prab wrote:
I came close two answers C and D.....and the answer is C .....but Can anyone please explain why the answer is not C.......

?????

the answer is C or the answer is C ?


Sorry it was a Typo error the answer is C but i marked E......
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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 09 Jan 2012, 20:28
Option E actually strengthens the argument. If Renco employees are not younger than Garnet employees then Renco employees can be affected by stroke -> Salco has no financial incentive by asking Renco employees to test their cholestrol levels

But option C rightly weakens the argument. If Garnet hires some of the ex-Renco employees, these employees can be affected by stroke and Salco would end up paying for this. -> Salco will also lose the financial incentive it had got , by asking the Garnet employees te test their cholestrol levels. Hence to avoid this , Salco has to recommend even Renco employees to undergo the tests

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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 09 Jan 2012, 21:49
i might be mistaken but, isn't the option C only the option in context here.

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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 11 Jan 2012, 09:53
prab wrote:
i might be mistaken but, isn't the option C only the option in context here.


Even A is also a contender because of the word 'possibility' --> stroke MAY or MAY NOT occur. If it occurs, it strengths the statement otherwise it weakens.
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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 27 Aug 2015, 19:14
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no, option C actually is in context and does weaken.
The argument is this: SaleCor's financial incentive to volunteer for Garnet's employees = SaleCor can save costs if Garnet's employees don't end up with serious ailments because of untreated cholesterol (remember Insurer has to pay for the expensive ailments too - which are more expensive to pay for than the cholesterol check/early treatment)
Whereas this financial incentive is non-existent for SaleCor in the case of RenCo because RenCo's employees leave early.
So, the assumption here is: 1) when employees with cholesterol are untreated for long = expensive ailments arise
2) RenCo employees don't stay long = no expensive ailments arise for SaleCor to pay (so why should SaleCor now waste money to sponsor for cholesterol check if these employees are not going to stay for a long enough period to incur SaleCor costs through expensive ailments = No FINANCIAL INCENTIVE for SaleCor)

Weaken:
SaleCor's reasoning seems fair enough. But when would it be counterproductive for SaleCor.
1) assume these employees leaving RenCo (who has SaleCor as its insurer) end up with another company for which SaleCor is an insurer. Now SaleCor will end up paying for these employees (=who did not have the cholesterol check and are therefore more likely to end up with serious ailments which incur huge costs for the insurer). So in this case SaleCor still has the financial incentive to pay for those cholesterol checks
2) a less probable scenario - when some study finds all the RenCo employees are unhealthy and say 90% of them contract those ailments during the short time they are with RenCo and SaleCor has to pay for those treatments. So in this case SaleCor still has the financial incentive to pay for those cholesterol checks

Also, we are only weakening the fact that RenCo's employees short stay at company = NO financial incentive for SaleCor.
So the answer must weaken this aspect only.
(A) means no fin incentive for paying for Garnet too. it falsifies the unstated premise - "cholesterol checks & early treatment does help"
(B) this only strengthens the case for SaleCor to an extent if those people talked about in the answer choice includes RenCo employees
(C) a re-worded case I came up with for Weakening the argument
(D) no impact on argument. but to the possible extent this can relate to the argument - same number of employees means SaleCor is saving as much from RenCo as it spends for Garner. nothing useful can be inferred from this info
(E) note old age cannot mean higher cholesterol - nothing of this sort is mentioned. plus even if age is correlated with high cholesterol and strokes, the argument kind of strengthens SaleCor's case for RenCo.

hope this helps!

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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 24 Jan 2016, 05:05
C is a sufficient one:
It is possible that employees who jumper from R to G didn't receive any early treatment of cholesterol and worked for a long time.
This situation according to the argument ( strokes would occur several years later) will make the insurer be incentive.

E actually strengthens the argument.

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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h [#permalink]

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New post 12 Jun 2017, 09:16
A,D,E are out of scope because these options discuss something else that are not covered in the argument, and also, all of these questions do not relate to both companies.
B does not address the issue in the argument, then it is C even though C is quite confusing, and difficult to understand.

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Re: Two computer companies, Garnet and Renco, each pay Salcor to provide h   [#permalink] 12 Jun 2017, 09:16
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Two computer companies, Garnet and Renco, each pay Salcor to provide h

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