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The XCT automobile is considered less valuable than the ZNK automobile, because insurance companies pay less, on average, to replace...

GMAT Critical Reasoning : (CR) Questions

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The XCT automobile is considered less valuable than the ZNK automobile, because insurance companies pay less, on average, to replace a stolen XCT than a stolen ZNK. Surprisingly, the average amount insurance companies will pay to repair a car involved in a collision is typically higher for the XCT than for the ZNK. One insurance expert explained that repairs to XCT automobiles are especially labor-intensive, and labor is a significant factor in collision repair costs.

Which of the following, if true, most strongly supports the insurance expert's explanation?

A
ZNK automobiles are involved in accidents more frequently than XCT automobiles.
B
The cost of routine maintenance for the ZNK is about the same as for the XCT.
C
There are more automobile mechanics who specialize in XCT repairs than in ZNK repairs.
D
The ease of repair of ZNK automobiles is one factor that adds to their value.
E
XCT automobiles are more likely to be stolen than ZNK automobiles.
Solution

Passage Analysis:

Text from Passage Analysis
The XCT automobile is considered less valuable than the ZNK automobile, because insurance companies pay less, on average, to replace a stolen XCT than a stolen ZNK.
  • What it says: XCT cars are worth less than ZNK cars, proven by lower insurance payouts for stolen XCTs
  • What it does: Sets up the basic value comparison between two car models
  • What it is: Author's claim with supporting evidence
  • Visualization: Stolen car payouts: XCT = $15,000, ZNK = $25,000
Surprisingly, the average amount insurance companies will pay to repair a car involved in a collision is typically higher for the XCT than for the ZNK.
  • What it says: Collision repair costs are higher for XCT than ZNK - opposite of the theft replacement pattern
  • What it does: Creates a puzzle by contradicting what we'd expect from the value comparison
  • What it is: Contrasting fact that surprises
  • Visualization: Collision repair costs: XCT = $8,000, ZNK = $5,000 (opposite of theft payouts)
One insurance expert explained that repairs to XCT automobiles are especially labor-intensive, and labor is a significant factor in collision repair costs.
  • What it says: XCT repairs need more work hours, and labor costs drive up collision repair bills
  • What it does: Offers a potential solution to the puzzle about why XCT repair costs are higher
  • What it is: Expert's explanation
  • Visualization: XCT repair = 40 labor hours, ZNK repair = 25 labor hours (labor = 60% of repair costs)

Argument Flow:

We start with a clear fact about car values, then get hit with surprising information that seems to contradict what we'd expect. Finally, an expert steps in to explain why this surprising pattern makes sense.

Main Conclusion:

The expert's explanation that XCT repairs are more labor-intensive accounts for why XCT collision repair costs are higher despite XCTs being less valuable cars overall.

Logical Structure:

The argument presents a puzzle (valuable cars cost less to repair than less valuable ones) and then offers an explanation (labor intensity differences). The expert's theory bridges the gap between car value and repair costs by focusing on the specific factor that drives collision repair expenses.

Prethinking:

Question type:

Strengthen - We need to find information that makes the insurance expert's explanation more believable or convincing

Precision of Claims

The expert claims XCT repairs are 'especially labor-intensive' and that 'labor is a significant factor in collision repair costs' - these are qualitative claims about the nature of repair work and cost composition

Strategy

The expert is trying to explain why XCT cars (which are less valuable) paradoxically cost more to repair than ZNK cars. His explanation has two parts: (1) XCT repairs need more labor, and (2) labor costs matter a lot in repairs. To strengthen this, we need evidence that either confirms XCT cars really do require more hands-on work, or that labor costs are indeed a major driver of repair expenses, or that there's something specific about XCT design that makes repairs more complex

Answer Choices Explained
A
ZNK automobiles are involved in accidents more frequently than XCT automobiles.
This talks about accident frequency, but the expert's explanation focuses on what happens during repairs - specifically that XCT repairs require more labor. How often cars crash doesn't tell us anything about whether XCT repairs are more labor-intensive than ZNK repairs when accidents do occur.
B
The cost of routine maintenance for the ZNK is about the same as for the XCT.
This addresses routine maintenance costs, but we're trying to understand collision repair costs. The expert's explanation specifically concerns what happens when cars need collision repairs, not regular oil changes or tune-ups. This doesn't help us understand why XCT collision repairs are more labor-intensive.
C
There are more automobile mechanics who specialize in XCT repairs than in ZNK repairs.
This actually works against the expert's explanation. If there are more mechanics who specialize in XCT repairs, we'd expect XCT repairs to be more efficient and less labor-intensive, not more labor-intensive. Having more specialized mechanics should make repairs faster and easier, not harder.
D
The ease of repair of ZNK automobiles is one factor that adds to their value.
This directly supports the expert's explanation by showing that ZNK cars are valuable partly because they're easy to repair. If ZNK cars are easy to repair, this implies XCT cars are harder to repair, which would make them more labor-intensive. This creates a logical link between the car values and the labor intensity of repairs, perfectly supporting the expert's theory.
E
XCT automobiles are more likely to be stolen than ZNK automobiles.
This relates to theft rates, but the expert's explanation is about collision repair work being labor-intensive. How often cars get stolen doesn't tell us anything about how much labor is needed when they get into accidents and need repairs.
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