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GMAT Question of the Day – 26/12/2020

QUESTION

A design flaw in deep-sea research submarines has led to the failures of many research projects. These projects are insured against such losses; as a result, claims against policies underwriting deep-sea research projects have increased greatly. Insurance premiums for these projects have been raised in response to these higher claims. These cost increases have led research institutions to try to accomplish more research with fewer research projects.

Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of conducting deep-sea research will continue to rise?

ANSWER SELECTION

ANSWER EXPLANATION

The conclusion in this problem is not contained within the stimulus itself, but rather in the question stem. The conclusion is the prediction that the cost of deep-sea research projects will rise in the future. The stimulus, therefore, provides the evidence, explaining that a design flaw in the submarines used has increased the number of failed research projects and thus increased insurance claims by researchers, which has increased premiums for policies on these types of projects. Higher premiums have made projects more expensive, causing institutions to increase their expectations of each individual project.

All of the evidence in the stimulus is in the past and present. What’s missing to support the conclusion in the question stem is evidence about the future.

If (C) is true, then the greater demands on projects will cause more of those projects to fail, thus pushing the cost of these projects higher still. (C) is the correct answer.

Choice (A) explains why one particular cost, insurance, is high, but nothing in the stimulus indicates that this cost will continue to rise.

The impossibility of determining why projects fail has nothing to do with an expectation of continually rising costs. Choice (B) is, therefore, not a strengthener.

Choice (D) describes one source of high costs in research projects, but there’s no reason to think it will lead to continually rising costs.

Choice (E) explains that projects are often inefficient (and, therefore, more expensive than they should be), but we have no reason to believe that they will grow increasingly inefficient (so we have no reason to think that costs will continue to rise).

Clever Academy

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