Health benefits

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Health benefits

by ruplun » Sun Jul 03, 2011 6:08 am
Each decrease of 10 percent in the deductible of a health insurance policy will increase the length of the tenure of an employee hired at that time, all other factors being equal. For instance, at the NMP corporation, only in the years 1974 through 1977 did the deductible of the health insurance policy increase, and the workers hired in those years stayed with the company an average of five years, as compared with the average employee's tenure of 15 years.

Which of the following can be most reasonably concluded from the statements above?


A.When a company increases the deductible of its health insurance, its employees will be unhappy.

B.Companies should secure health insurance with a very small deductible.

C.A company's highest priority should be to have affordable health insurance deductibles.

D.A decrease in a company's health insurance deductible is a way of improving that company's financial health.

E.The length of an employee's tenure may be influenced by factors other than the type of job or the work environment.


pLEASE SOLVE ....

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by VivianKerr » Sun Jul 03, 2011 2:40 pm
Conclusion: each 10% decrease = employee tenure increase
Evidence: deductible increased, workers hired stayed only 5 years
Assumptions: the deductible is the reason the workers stay or go

IMO: E is the closest match to our assumption. A is tempting, but their unhappiness doesn't necessarily lead to their leaving the company. The rest are out of scope/irrelevant.
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by Sanjay2706 » Sun Jul 03, 2011 8:19 pm
IMO E