Gprep CR qstn

[mrinal.singh06]

For similar cars and comparable drivers, automobile insurance for collision damage has always cost more inGreatport than in Fairmont. Police studies, however, show that cars owned by Greatport residents are, onaverage, slightly less likely to be involved in a collision than cars in Fairmont. Clearly, therefore, insurance companies are making a greater profit on collision-damage insurance in Greatport than in Fairmont.


Which of the following is an assumption on which the argument depends?

1)repairing typical damage does cost more in Greatport than in Fairmont.
2)there are no more motorist in Greatport than in fairmont.
3)Greatport residents who have been in collision are more likely to report it to their insurance company than than fairmont residents are
4)fairmont and greatport are the cities with highest collision damage insurance rates
5)the insurance companies were already aware of difference in likelihood of collisions before the publication of police reports.

Ans-1
If we negate the assumption than it supports the answer "repairing typical damage cost more in Greatport than in Fairmont".If it costs more then insurance companies will make a greater profit on collision-damage insurance in Greatport than in Fairmont


in choice 3 if Greatport residents are reporting a lot more than fairmont then the insurance company in GreatPort are getting more chance to earn more money

[tim]

if it costs more to repair the cars, that's more money the insurance companies have to pay, and therefore the higher premiums don't necessarily translate into greater profits..

[krishnan.anju1987]

A seems to be weakening the argument. Is the option a wrong by any chance. Is it supposed to be
Repairing typical collision damage in greatport does not cost more than in fairmont?

[jlucero]

Krishnan, you're correct.

Mrinal, per forum rules:

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