Source: MGMAT CAT

In response to the increasing cost of producing energy through traditional means, such as combustion, many utility companies have begun investing in renewable energy sources, chiefly wind and solar power, hoping someday to rely on them completely and thus lower energy costs. The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost. As a result, these sources will be less risky for the utilities than nonrenewable sources, such as gas, oil, and coal, whose prices can fluctuate dramatically according to availability.

The claim of the utility companies presupposes which of the following?
a)The public will embrace the development of wind and solar power.
b)No new deposits of gas, oil, and coal will be discovered in the near future.
c)Weather patterns are consistent and predictable.
d)The necessary technology for conversion to wind and solar power is not more expensive than the technology needed to create energy through combustion.
e)Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky.

OA : C

OA Explanation:
(C) CORRECT. If we assume that weather patterns are consistent and predictable, then with the stated premises, we can conclude that solar and wind power will be less risky than oil and gas. If, on the other hand, weather patterns are not consistent and predictable, then solar and wind power are not reliable and thus will not provide "stable energy supplies at low cost." Thus, the argument's conclusion directly depends on this assumption.

My question here is the basic logic of assumption is an unstated premise that needs to be true for the conclusion to be valid.

But in the argument , it is already given as a premise that they will provide stable energy supplies. Then why we need to again assume that the Weather patterns are consistent and predictable (i.e it will be stable) ?

No. “they will provide stable energy supplies” is not a premise; it is the conclusion. In order to reach this conclusion, we need an assumption that ensures stability..

_________________
Tim Sanders
Manhattan GMAT Instructor

Hi ,

if claim of the utility companies is the sub conclusion, then it acts as the premise for arriving at the main conclusion right ?

Main conclusion : these sources will be less risky for the utilities than nonrenewable sources, such as gas, oil, and coal, whose prices can fluctuate dramatically according to availability

Claim is different from a belief or judgment or are they same? Please clarify.How do we differentiate among claim, conclusion,belief and premise. This distinction is very confusing

Hi,

Could anyone clarify the below

Claim is different from a belief or judgment or are they same? Please clarify.How do we differentiate among claim, conclusion,belief and premise. This distinction is very confusing

Here's a really simple argument that will help us:
The new restaurant only serves vegetarian food, and surely no one will want to eat vegetarian food. Thus, the new restaurant will fail.

In GMAT land, a premise is a piece of information that we use to draw a conclusion. Premises always are provided because without them we cannot reach a conclusion. They can be either facts (evidence) or opinions (claims or beliefs). In this case, the premises consist of:
1)the fact that the new restaurant only serves vegetarian food, and
2) the belief/claim that no one will want to eat vegetarian food.

The conclusion is something that is supported by the facts in the argument. It is either the main idea of the argument or a statement that can be logically drawn from the premises stated in the argument. In this case, it is the idea that the new restaurant will fail.

Hope this helps!

_________________
Jamie Nelson
ManhattanGMAT Instructor