During the past year, Pro-Tect Insurance Company's total

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Source: GMAT Prep

During the past year, Pro-Tect Insurance Company's total payout on car-theft claims has been larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so it 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 such 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 and the second are both evidence offered by the argument as support for its main conclusion.
B. The first presents a problem a response to which the argument assesses; the second is the judgment reached by that assessment.
C. The first is the position the argument seeks to establish; the second is a judgment the argument uses to support that position.
D. The first is a development that the argument seeks to explain; the second is a prediction the argument makes in support of the explanation it offers.
E. The first presents a development whose likely outcome is at issue in the argument; the second is a judgment the argument uses in support of its conclusion about that outcome.

The OA is B
Source: — Critical Reasoning |

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by deloitte247 » Sun May 05, 2019 12:50 am

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OPTION A:- INCORRECT
These two boldface portions do not play the role of evidence to the conclusion in the argument because the first boldface portion serves as a problem which the argument is trying to solve, while the second boldface portion is the conclusion to the argument.

OPTION B:- CORRECT
This is correct because the first boldface portion is the problem which the argument intends to solve while the second boldface portion is the conclusion reached by the insurance company to help them reduce the number of car theft as well as annual payouts.

OPTION C:- INCORRECT
This is incorrect because the first boldface portion doesn't seek to establish the position of not being able to reduce the number of car theft policies and not being able to protect itself against continued large payouts. The second boldface serves as a judgement but isn't a judgement made to support that position.

OPTION D:- INCORRECT
Both the first and the second boldface portions do not play the role of development to explain and a prediction the argument respectively, in the argument.

OPTION E:- INCORRECT
This is incorrect because the first boldface portion is the problem being presented while the second boldface portion is a judgement or a conclusion reached by the argument not a judgement that the argument uses in support of its conclusion.