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Fab
- Senior | Next Rank: 100 Posts
- Posts: 87
- Joined: Tue Jul 15, 2008 10:23 am
- Location: Lima
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Q20:
During the past year, Pro-Tect Insurance Company’s total payouts on car-theft claims were larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing antitheft devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect’s plan is likely to reduce its annual payouts.
In the argument above, the two portions in boldface play which of the following roles?
A. The first rules out a certain strategy for achieving a goal; the second presents the strategy that was adopted instead and whose effectiveness the argument assesses.
B. The first is a judgment made in support of a certain conclusion; the second is that conclusion.
C. The first has been used as a consideration to support adopting a certain strategy for achieving a goal; the second reports a decision to adopt an alternative strategy.
D. The first provides evidence in favor of adopting a certain strategy for achieving a goal; the second reports a decision to pursue an alternative goal.
E. The first is a consideration offered against adopting a certain strategy for achieving a goal; the second is the main conclusion that the argument is seeking to establish.
During the past year, Pro-Tect Insurance Company’s total payouts on car-theft claims were larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing antitheft devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect’s plan is likely to reduce its annual payouts.
In the argument above, the two portions in boldface play which of the following roles?
A. The first rules out a certain strategy for achieving a goal; the second presents the strategy that was adopted instead and whose effectiveness the argument assesses.
B. The first is a judgment made in support of a certain conclusion; the second is that conclusion.
C. The first has been used as a consideration to support adopting a certain strategy for achieving a goal; the second reports a decision to adopt an alternative strategy.
D. The first provides evidence in favor of adopting a certain strategy for achieving a goal; the second reports a decision to pursue an alternative goal.
E. The first is a consideration offered against adopting a certain strategy for achieving a goal; the second is the main conclusion that the argument is seeking to establish.
