GMAT Exam  >  GMAT Questions  >  Five years ago, the town of Bayside, in the K... Start Learning for Free
Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.
Q. Which of the following, if true, would most seriously undermine the argument?
  • a)
    A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.
  • b)
    It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.
  • c)
    In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.
  • d)
    The town of Dryadia has some flooding most springs.
  • e)
    Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Five years ago, the town of Bayside, in the Katonic River Valley, had ...
The credited answer is choice (D). If the town of Dryadia really does flood, then that’s the reason insurers won’t write flood insurance for it! Therefore, the “only reason” cannot be “its similarity to Bayside in terms of where it is situated in the river valley.” Choice (D), if true, obliterates the argument, so this is the best answer.
The argument say that “most insurers” don’t write flood insurance in either town, but if most don’t, this implies that some do. Therefore, choice (A) is actually expected from the argument and does not challenge it at all. Choice (A) is incorrect.
Choice (B) would not be surprising and could be perfectly consistent with the argument. We know Bayside had “catastrophic flooding“, but we don’t know for a fact that every single house was flooded—maybe or maybe not. If some houses were not flooded, it sounds as if the insurers don’t write flood insurance for any house in Bayside, so even those houses that never flooded could not buy flood insurance. Therefore, this would validate (B) without threatening the argument in any way. Choice (B) is incorrect.
Choice (C) is irrelevant. Even if no resident in absolutely any other town up and down the Katonic River Valley can buy flood insurance, that doesn’t necessarily shed light on why folks in a town in a completely different river valley can’t buy insurance. Choice (C) is incorrect.
Choice (E) is too general and vague. Yes, perhaps there are many ways a house can be flooded, and correspondingly, perhaps there are many reasons why an insurer would deny any particular house flood insurance. Even if this is true, it doesn’t shed any light on exactly why the folks in Dryadia have trouble getting flood insurance. Choice (E) is suggestive, but it doesn’t actually tell us anything. Choice (E) is incorrect.
Free Test
Community Answer
Five years ago, the town of Bayside, in the Katonic River Valley, had ...
Undermining the Argument:

Option D:
- This option states that the town of Dryadia experiences some flooding most springs.
- This information indicates that Dryadia faces a higher risk of flooding compared to Bayside.
- If Dryadia experiences flooding more frequently than Bayside, it suggests that insurers refusing to write flood insurance for houses in Dryadia may have a valid reason beyond just the similarity in location to Bayside.
- This undermines the argument that the sole reason for insurers refusing flood insurance in Dryadia is its proximity to the river valley, as the increased frequency of flooding in Dryadia could be a significant factor.
- Therefore, this information weakens the conclusion drawn in the argument and suggests that there may be other factors at play in insurers' decisions regarding flood insurance in Dryadia.
Attention GMAT Students!
To make sure you are not studying endlessly, EduRev has designed GMAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in GMAT.
Explore Courses for GMAT exam

Similar GMAT Doubts

To remain financially sound, health insurance companies must charge higher rates to insure people considered a higher risk. Lacking complete information about individuals, insurers are forced to set a standard rate, based on the average risk of the group, for a particular segment of the population. Consumers in poor health are willing to pay for the insurance, knowing that it will cover their higher-than-average health-care costs. In contrast, healthy consumers often decide to forgo the insurance, reasoning that it is less expensive to pay out-of-pocket for their lower-than-average health-care costs. The result, called “adverse selection,” is that the riskier members of a group will comprise the group of insurance applicants, potentially leading to a market failure in which insurance companies cannot afford to offer insurance at any price.Among people over age sixty-five, even the wealthy can have difficulty obtaining fairly priced medical insurance, simply because of their age. However, those who blame so-called insurance company greed and discrimination against the elderly are ignoring the reality of adverse selection. Younger people generally obtain health insurance through their employers’ group insurance plan.Employer’s plans obligate all employees to enroll in the plan and effectively pre-screen for general health, as a minimum health level is required to hold a job. Insurance companies can therefore charge a lower premium, based on the lower average risk of the employee pool, without worrying that healthy employees will opt out of the plan.Consumers over sixty-five, typically not employed and thus seeking insurance individually, are necessarily more vulnerable to market failure stemming from adverse selection.Q.The passage states which of the following about the cost of health-care?

To remain financially sound, health insurance companies must charge higher rates to insure people considered a higher risk. Lacking complete information about individuals, insurers are forced to set a standard rate, based on the average risk of the group, for a particular segment of the population. Consumers in poor health are willing to pay for the insurance, knowing that it will cover their higher-than-average health-care costs. In contrast, healthy consumers often decide to forgo the insurance, reasoning that it is less expensive to pay out-of-pocket for their lower-than-average health-care costs. The result, called “adverse selection,” is that the riskier members of a group will comprise the group of insurance applicants, potentially leading to a market failure in which insurance companies cannot afford to offer insurance at any price.Among people over age sixty-five, even the wealthy can have difficulty obtaining fairly priced medical insurance, simply because of their age. However, those who blame so-called insurance company greed and discrimination against the elderly are ignoring the reality of adverse selection. Younger people generally obtain health insurance through their employers’ group insurance plan.Employer’s plans obligate all employees to enroll in the plan and effectively pre-screen for general health, as a minimum health level is required to hold a job. Insurance companies can therefore charge a lower premium, based on the lower average risk of the employee pool, without worrying that healthy employees will opt out of the plan.Consumers over sixty-five, typically not employed and thus seeking insurance individually, are necessarily more vulnerable to market failure stemming from adverse selection.Q.Which of the following best describes the function of the first paragraph within the passage as a whole?

To remain financially sound, health insurance companies must charge higher rates to insure people considered a higher risk. Lacking complete information about individuals, insurers are forced to set a standard rate, based on the average risk of the group, for a particular segment of the population. Consumers in poor health are willing to pay for the insurance, knowing that it will cover their higher-than-average health-care costs. In contrast, healthy consumers often decide to forgo the insurance, reasoning that it is less expensive to pay out-of-pocket for their lower-than-average health-care costs. The result, called “adverse selection,” is that the riskier members of a group will comprise the group of insurance applicants, potentially leading to a market failure in which insurance companies cannot afford to offer insurance at any price.Among people over age sixty-five, even the wealthy can have difficulty obtaining fairly priced medical insurance, simply because of their age. However, those who blame so-called insurance company greed and discrimination against the elderly are ignoring the reality of adverse selection. Younger people generally obtain health insurance through their employers’ group insurance plan.Employer’s plans obligate all employees to enroll in the plan and effectively pre-screen for general health, as a minimum health level is required to hold a job. Insurance companies can therefore charge a lower premium, based on the lower average risk of the employee pool, without worrying that healthy employees will opt out of the plan.Consumers over sixty-five, typically not employed and thus seeking insurance individually, are necessarily more vulnerable to market failure stemming from adverse selection.Q.The author refers to “greed and discrimination” in the second paragraph of the passage in order to

Top Courses for GMAT

Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer?
Question Description
Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Five years ago, the town of Bayside, in the Katonic River Valley, had catastrophic flooding one spring, and consequently, most insurers now refuse to write flood insurance for houses in Bayside. The town of Dryadia, in the Phemptic River Valley, is much like Bayside in its proximity to a similar river at an almost identical point in the river valley. We can conclude that the only reason the same insurers do not write flood insurance for houses in Dryadia either is its similarity to Bayside in terms of where it is situated in the river valley.Q. Which of the following, if true, would most seriously undermine the argument?a)A small number of independent insurers will write flood insurance for at least some houses in each of the two towns.b)It is hard for an homeowner to buy flood insurance if a large proportion of other houses in the same town have been flooded in recent years.c)In many other towns in the Katonic River Valley, it is hard for home-owners to buy flood insurance.d)The town of Dryadia has some flooding most springs.e)Flooding from spring surges in rivers is only one of the ways in which a home can become flooded.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
Explore Courses for GMAT exam

Top Courses for GMAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev