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Statement and Assumption - Section 1

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  • Statement and Assumption - Section 1
Directions to Solve

In each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.

Give answer

  • (A) If only assumption I is implicit
  • (B) If only assumption II is implicit
  • (C) If either I or II is implicit
  • (D) If neither I nor II is implicit
  • (E) If both I and II are implicit.
1. 

Statement: Shalini made an application to the bank for a loan of Rs. 1,80,000 by mortgaging her house to the bank and promised to repay it within five years.

Assumptions:

 

  1. The bank has a practice of granting loans for Rs. 1,00,000 and above.
  2. The bank accepts house as collateral security against such loans.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option E

Explanation:

The fact that Shalini has applied for a loan of Rs. 1,80,000 implies that the bank can grant a loan above Rs. 1,00,000. So, I is implicit. II also follows directly from the statement and so is implicit.

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2. 

Statement: The X-Airlines has decided to increase the passenger fare by 15 percent with immediate effect.

Assumptions:

 

  1. The demand for seats of X-Airlines may remain unchanged even after the hike of fare.
  2. Other airline companies may also hike the passenger fares.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option A

Explanation:

Clearly, such decisions are taken only after making sure that it will not affect the company's business adversely. So, I is implicit. However, the impact of this increase on other airlines cannot be ascertained. So, II is not implicit.

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3. 

Statement: Lack of stimulation in the first four or five years of life can have adverse consequences.

Assumptions:

 

  1. A great part of the development of observed intelligence occurs in the earliest years of life
  2. 50 percent of the measurable intelligence at age of 17 is already predictable by the age of four.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option A

Explanation:

The lacking in first four or five years can be adverse because it is the main period of development. So, I is implicit. Since nothing is mentioned about the predictability of intelligence, II is not implicit.

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4. 

Statement: Cases of food poisoning due to consumption of liquor are increasing in rural areas.

Assumptions:

 

  1. Percentage of people consuming liquor is more in rural areas.
  2. There are many unauthorized spurious liquor shops in the rural areas.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option B

Explanation:

The statement talks of number of cases of food poisoning due to consumption of liquor and not of the number of cases consuming liquor. So, I is not implicit. Besides, the statement indicates that people in rural areas are getting spurious or low-grade liquor and no check is being kept on shops selling liquor there. So, II is implicit.

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5. 

Statement: Please note that the company will provide accommodation to only outside candidates if selected.' - A condition in an advertisement.

Assumptions:

 

  1. The local candidates would be having some other arrangement for their stay.
  2. The company plans to select only local candidates.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option A

Explanation:

The statement mentions that the company intends to provide accommodation only to outside candidates. This means that local candidates would have to arrange accommodation on their own and that the company may select local as well as outside candidates. Thus, only I is implicit.

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6. 

Statement: The regulatory authority has set up a review committee to find out the reasons for unstable stock prices.

Assumptions:

 

  1. The investors may regain confidence in stock market by this decision.
  2. The review committee has the expertise to find out the causes for volatility in the stock market.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option E

Explanation:

Clearly, I mentions the aim for which the step talked about in the statement, has been undertaken while II mentions the essential requirement for it. So, both I and II are implicit.

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7. 

Statement: Greater public participation results in good civic governance. - Statement of Municipal Commissioner of City A.

Assumptions:

 

  1. The municipal office is not competent to effect good civic administration.
  2. Good civic governance is a matter of collective will and effort of the people and administration.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option B

Explanation:

The statement stresses on the fact that though civic governance is the task of the municipal body, but all the tasks done come out to be more fruitful if the general public lends a helping hand in the same. So, only II is implicit.

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8. 

Statement: Safety and health practices in many Indian companies are well below the international standards.

Assumptions:

 

  1. International standards of health and safety are ideal and unrealistic.
  2. Indian organizations do not consider safety and health management as their prime social responsibility.
A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer: Option B

Explanation:

The statement talks about the safety and health practices in Indian companies being far below international standards. It is clearly a criticism of Indian organizations not paying considerable attention to these aspects. So, II is implicit. The international standards demand perfection and are, in no way, non-achievable. So, I is not implicit.

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