automobile insurance

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automobile insurance

by scoobydooby » Mon Apr 06, 2009 11:28 am
In 1960, 10 percent of every dollar paid in automobile insurance premiums went to pay costs arising from injuries incurred in car accidents. In 1990, 50 percent of every dollar paid in automobile insurance premiums went toward such costs, despite the fact that cars were much safer in 1990 than in 1960

Which of the following, if true, best explains the discrepancy outlined above?

(A) There were fewer accidents in 1990 than in 1960.

(B) On average, people drove more slowly in 1990 than in 1960.

(C) Cars grew increasingly more expensive to repair over the period in question.

(D) The price of insurance increased more rapidly than the rate of inflation between 1960 and 1990.

(E) Health-care costs rose sharply between 1960 and 1990.

OA shortly..
Source: — Critical Reasoning |

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by goelmohit2002 » Mon Apr 06, 2009 11:51 am
IMO "E"

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by karmayogi » Mon Apr 06, 2009 12:05 pm
IMO E.

It's already late, 1:34 AM, in India, and I am feeling sleep. I will post explanation tomorrow, if required.
Each soul is potentially divine. The goal is to manifest this divine within.
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by blackarrow » Mon Apr 06, 2009 12:36 pm
IMO E

(E) Health-care costs rose sharply between 1960 and 1990. -- the only reason why insurance cost would increase evne when people are driving safely. This explains that per injury cost increases
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by scoobydooby » Mon Apr 06, 2009 10:13 pm
thanks, it is E indeed.

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by Rashmi1804 » Sun Apr 12, 2009 9:01 am
Oh god!!!!! my exam date is nearing and I like a stupid picked C. was wondering if the OA was wronggg.....

I think i have this habit of omitting some words under time pressure.

INJURIES can only happen to HUMANS , not cars!! ---for those who picked C.

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by scoobydooby » Sun Apr 12, 2009 9:48 am
Rashmi1804,
i was worse than you :) i couldnt see the connection between healthcare and automobile injury costs! and chose to not mark any choice :)

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by graem83d » Sun May 15, 2016 3:07 am
I would go with option E as the correct option