Critical Reasoning
Verbal Ability

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For similar carsand comparable drivers, automobile insurance for collision damage has always costmore in Great port than in Fairmont. Police studies, however, show thatcars owned by Greatport residents are, on average, slightly less likely to be involved in a collision than cars in Fairmont. Clearly, therefore, insurance companies are making a greater profit on collision-damage insurance in Greatportthan in Fairmont.

In evaluating the argument, it would be most useful to compare


the level of traffic congestion in Greatport with the level oftraffic congestion in Fairmont


the cost of repairing collision damage in Great port with the cost of repairing collision damage in Fairmont


the rates Greatport residents pay for other forms ofinsurance with the rates paid for similar insurance by residents of Fairmont


the condition of Greatport's roads and streets with the condition of Fairmont's roads and streets


the cost of collision-damage insurance in Greatport and Fairmont with that in other cities

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Option(B) is correct

Option A :  The level of traffic congestion probably contributes to the frequency of collisions in each town. The information given, however, includes the statement that Greatport cars arelesslikely to be involved in collisions than are Fairmontcars. Why this occurs—whether, for example, traffic congestion is a contributory factor-is not relevant.

Option B :  Correct. This is clearly a factor that would affect the profitability of insurance in the two towns-and is therefore highly relevantto evaluatingthe argument, especially its conclusion.

Option C :  The argument's conclusion is aboutinsurance companies' profits on collision-damage insurance alone, so other types ofinsurance, and the rates paid for them, are not relevant.

Option D :  The condition of the roads and streets in each town probably contributes to the frequency of collisions in each town. The information given, however, includes the statement that Greatport cars areless likely to be involved in collisions than are Fairmont cars. Why this isso—whether, for example, the condition of the roads is a contributory cause—is not relevant.

Option E : Since the argument isconcerned solely with collision-insurance costs and profits in Greatport and Fairmont, comparing the cost of insurance in those towns with the costofinsurance elsewhere would provide no useful insight.

The correct answer is B.

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