BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 559 reviewsTarget Test Prep

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Argonia

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 458
Joined: Sun Aug 31, 2008 10:44 amFollowed by: 1 member
Thanked: 3 times
by gmat009 » Tue Oct 28, 2008 7:28 am
In Argonia the average rate drivers pay for car accident insurance is regulated to allow insurance companies to make a reasonable profit. Under the regulations, the rate any individual driver pays never depends on the actual distance driven by that driver each year. Therefore, Argonians who drive less than average partially subsidize the insurance of those who drive more than average.

The conclusion above would be properly drawn if it were also true that in Argonia
(A) the average accident insurance rate for all drivers rises whenever a substantial number of new drivers buy insurance
(B) the average cost to insurance companies of insuring drivers who drive less than the annual average is less than the average cost of insuring drivers who drive more than the annual average
(C) the lower the age of a driver, the higher the insurance rate paid by that driver
(D) insurance company profits would rise substantially if drivers were classified in terms of the actual number of miles they drive each year
(E) drivers who have caused insurance companies to pay costly claims generally pay insurance rates that are equal to or lower than those
paid by other drivers

Plz. explain........
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Critical Reasoning |
Master | Next Rank: 500 Posts
Posts: 260
Joined: Sun Oct 12, 2008 8:10 pm
Thanked: 4 times

by PAB2706 » Tue Oct 28, 2008 7:41 am
IMO E ..but not quite sure.... :roll:
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 267
Joined: Wed Jul 16, 2008 12:20 amFollowed by: 1 member
Thanked: 4 times

by Mani_mba » Tue Oct 28, 2008 7:51 am
IMO B.

B is assumed here.

If Avg Cost to insurance companies of insuring drivers who drive less than annual average is NOT LESS THAN Avg Cost to insurance companies of insuring drivers who drive more than annual average, then conclusion is not supported.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Legendary Member
Posts: 2134
Joined: Mon Oct 20, 2008 11:26 pmFollowed by: 25 members
Thanked: 237 times
GMAT Score:730

Re: Argonia

by logitech » Tue Oct 28, 2008 7:53 am
In Argonia the average rate drivers pay for car accident insurance is regulated to allow insurance companies to make a reasonable profit. Under the regulations, the rate any individual driver pays never depends on the actual distance driven by that driver each year. Therefore, Argonians who drive less than average partially subsidize the insurance of those who drive more than average.


SUBSIDIZE!

So they all pay the same amount no matter how many miles they drive but the ones who drives more actually COST more to the insurance companies, which is clearly stated in B

The conclusion above would be properly drawn if it were also true that in Argonia
(A) the average accident insurance rate for all drivers rises whenever a substantial number of new drivers buy insurance
(B) the average cost to insurance companies of insuring drivers who drive less than the annual average is less than the average cost of insuring drivers who drive more than the annual average
(C) the lower the age of a driver, the higher the insurance rate paid by that driver
(D) insurance company profits would rise substantially if drivers were classified in terms of the actual number of miles they drive each year
(E) drivers who have caused insurance companies to pay costly claims generally pay insurance rates that are equal to or lower than those
paid by other drivers
LGTCH
---------------------
"DON'T LET ANYONE STEAL YOUR DREAM!"
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 344
Joined: Sun Sep 28, 2008 11:00 amFollowed by: 1 member
Location: USA
Thanked: 6 times

by Bidisha800 » Tue Oct 28, 2008 7:32 pm
(B) it is.
Drill baby drill !

GMATPowerPrep Test1= 740
GMATPowerPrep Test2= 760
Kaplan Diagnostic Test= 700
Kaplan Test1=600
Kalplan Test2=670
Kalplan Test3=570
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 458
Joined: Sun Aug 31, 2008 10:44 amFollowed by: 1 member
Thanked: 3 times

by gmat009 » Wed Oct 29, 2008 7:12 am
Mani_mba wrote:IMO B.

B is assumed here.

If Avg Cost to insurance companies of insuring drivers who drive less than annual average is NOT LESS THAN Avg Cost to insurance companies of insuring drivers who drive more than annual average, then conclusion is not supported.
I am still not clear. According to conclusion "Argonians who drive less than average partially subsidize the insurance of those who drive more than average. "

So B is saying opposite of the conclusion.
IMO E is the best.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 259
Joined: Thu Jan 18, 2007 8:30 pm
Thanked: 16 times

by amitabhprasad » Wed Oct 29, 2008 9:21 am
As pointed by Logitech.
'B" is most accurate where it describes "Subsidy".
Whats OA
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 833
Joined: Mon Aug 04, 2008 1:56 am
Thanked: 13 times

by vivek.kapoor83 » Wed Oct 29, 2008 10:29 am
IMO it should be D. As it says..that by defining insurance amt bby the no of Kms they drive...companies can be in profit..So, IMO D>
OA pls
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 17
Joined: Tue Sep 23, 2008 4:29 pm
Thanked: 1 times

by jyotiistalking » Wed Oct 29, 2008 11:08 am
i am stuck in between b and d
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 28
Joined: Tue Oct 28, 2008 4:37 pm
Thanked: 2 times

by Somerandomguy » Wed Oct 29, 2008 2:25 pm
I think this question hinges on a sufficient condition. The argument claims that insurance companies charge premiums based on other factors that do not include distance (perhaps age, frequency of accidents...)

So we should find a statement when combined with the argument above to still allow the conclusion to follow (those who drive less subsidize others who drive more).

(A) the average accident insurance rate for all drivers rises whenever a substantial number of new drivers buy insurance
Eliminate: This is making an unwarranted prediction. Who knows, maybe a substantial increased number of new drivers lower the cost?


(B) the average cost to insurance companies of insuring drivers who drive less than the annual average is less than the average cost of insuring drivers who drive more than the annual average
I think this is the correct AC. It pretty much summarizes the conclusion.

(C) the lower the age of a driver, the higher the insurance rate paid by that driver
Eliminate: unwarranted assumption. It could be a number of different factors combined to increase the insurance rates. Perhaps the lower age combined with driving an old car would still result in a net decrease.


(D) insurance company profits would rise substantially if drivers were classified in terms of the actual number of miles they drive each year
Eliminate: unwarranted prediction. It "would" rise? Where the....

(E) drivers who have caused insurance companies to pay costly claims generally pay insurance rates that are equal to or lower than those
paid by other drivers
Eliminate: unwarranted assumption. I would guess that those who cause insurance companies to pay costly claims would pay an INCREASE in premiums.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 594
Joined: Thu Aug 14, 2008 11:51 pm
Thanked: 12 times

by nervesofsteel » Wed Nov 05, 2008 2:01 am
B as both type of drivers pay equal premium

if less than average miles drivers cost less then the premium paid by them can be used to subsidize type 2 drivers

and company can be profitable
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Legendary Member
Posts: 540
Joined: Sat Dec 20, 2008 7:24 pmFollowed by: 6 members
Thanked: 37 times

by navami » Tue Jun 07, 2011 9:22 am
IMO E. Experts seek help with this


-Thanks in Advance.
This time no looking back!!!
Navami
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 174
Joined: Fri Apr 02, 2010 3:41 pmFollowed by: 1 member
Thanked: 6 times

by sanabk » Tue Jun 07, 2011 10:19 am
B
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Legendary Member
Posts: 1325
Joined: Sun Nov 01, 2009 6:24 amFollowed by: 14 members
Thanked: 105 times

by vikram4689 » Tue Jun 07, 2011 5:35 pm
gmat009: please explain your doubt, IMO B
Premise: If you like my post
Conclusion : Press the Thanks Button ;)
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Master | Next Rank: 500 Posts
Posts: 126
Joined: Tue Feb 09, 2010 6:37 pmFollowed by: 4 members

by sandeep800 » Wed Jun 08, 2011 1:26 am
Confused between B and D
A body of clay, a mind full of play, a moment's life - that is me!!!
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply