GMAT Practice Question Set #10 (Question 28-30)

Critical Reasoning Question #28: Flood Insurance for Hurricane and Storm Damage  
Time 0 0 : 0 0 : 0 0

For similar house sizes, flood insurance for storm and hurricane damage has always cost more in Greenview than in West Palm. Fire department studies, however, show that the house properties owned by Greenview residents are, on average, slightly less likely to be involved in a storm or hurricane than house properties in West Palm. Clearly, therefore, flood insurance companies are making a greater profit on storm and huricane damage insurance in Greenview than in West Palm.

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

(A)

the frequency of hurricanes and storms in Greenview with the frequency of hurricans and storms in West Palm

(B)

the cost of repairing hurrican and storm damage in Greemview with the cost of repairing hurricane and storm damage in West Palm

(C)

the rates Greenview residents pay for other forms of insurance with the rates paid for similar insurance by residents of West Palm

(D)

the condition of Greenview's water drainage system with the condition of West Palm's water drainage system

(E)

the cost of hurricane and storm damage insurance in Greenview and West Palm with that in other cities

GMATTM is a registered trademark of the Graduate Management Admission CouncilTM. The Graduate Management Admission CouncilTM does not endorse, nor is it affiliated in any way with the owner or any content of this web site.