Statement: The school has decided to raise the number of students per classroom to seventy from the next academic session to bridge its income–expenditure gap.\nAssumptions:\nI. Fees from the additional students will be sufficient to bridge the gap to a large extent.\nII. The school will certainly be able to enroll enough additional students in every class next session.

Difficulty: Medium

Correct Answer: Only assumption I is implicit

Explanation:


Introduction / Context:
The management's policy change attempts to alleviate a budget gap by increasing class size. We must detect which presuppositions the plan relies upon.


Given Data / Assumptions:

  • Decision: increase intake per section to 70.
  • Stated purpose: bridge the financial gap.
  • No assurance of demand or guaranteed enrollments.


Concept / Approach:
A plan to raise capacity for revenue implicitly assumes that added capacity monetizes sufficiently. Certainty about filling every seat, however, is stronger than required and typically not assumed in a policy announcement.


Step-by-Step Solution:
1) For the decision to be sensible, added seats must materially improve revenue (Assumption I).2) Assumption II claims certainty of full utilization in each class, which is not necessary; partial but substantial filling can still bridge much of the gap.3) Hence only I is required.


Verification / Alternative check:
Even if some classes don't reach seventy, higher average occupancy could still improve finances.


Why Other Options Are Wrong:

  • Only II: Too strong and not required.
  • Either/Both: Overstate necessities.
  • Neither: Rejects the revenue logic needed to justify the decision.


Common Pitfalls:
Treating managerial optimism as certainty; necessity is about what must hold, not what is hoped for.


Final Answer:
Only assumption I is implicit.

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