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:
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:
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.
Discussion & Comments