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Reasoning - Logical Reasoning:

Logical Reasoning

MCQ - 231-8183

Question:

For similar carsand comparable drivers, automobile insurance for collision damage has always costmore in Great port than in Fairmont. Police studies, however, show thatcars owned by Greatport residents are, on average, 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 Greatportthan in Fairmont.

In evaluating the argument, it would be most useful to compare

  1. the level of traffic congestion in Great port with the level of-traffic congestion in Firmament
  2. the cost of repairing collision damage in Great port with the cost of repairing collision damage in Fairmont
  3. the rates Greatport residents pay for other forms ofinsurance with the rates paid for similar insurance by residents of Fairmont
  4. the cost of repairing collision damage in Great port with the cost of repairing collision damage in Fairmont
  5. the cost of collision-damage insurance in Greatport and Fairmont with that in other cities

Correct Answer: B

Explanation:

Option A : The level of traffic congestion probably contributes to the frequency of collisions in each town. The information given, however, includes the statement that Great port cars carelessly to be involved in collisions than are Harmonicas. Why this occurs—whether, for example, traffic congestion is a contributory factor-is not relevant.

Option B : Correct. This is clearly a factor that would affect the profitability of insurance in the two towns-and is therefore highly relevant to evaluating the argument, especially its conclusion.

Option C : The argument's conclusion is about insurance companies' profits on collision-damage insurance alone, so other types of insurance, and the rates paid for them, are not relevant.

Option D : The condition of the roads and streets in each town probably contributes to the frequency of collisions in each town. The information given, however, includes the statement that Great port cars airless likely to be involved in collisions than are Firmament cars. Why this is so—whether, for example, the condition of the roads is a contributory cause—is not relevant.

Option E : Since the argument is concerned solely with collision-insurance costs and profits in Great port and Firmament, comparing the cost of insurance in those towns with the coinsurance elsewhere would provide no useful insight.

The correct answer is B.

Record Performance

243 MCQ for effective preparation of the test of Logical Reasoning of Logical Reasoning section.

Read the MCQ statement: For similar carsand comparable drivers, automobile insurance for collision damage has always costmore in Great port than in Fairmont. Police studies, .... to compare , keenly and apply the method you have learn through the video lessons for Logical Reasoning to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 231-8183.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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