Statement: The regulatory authority has set up a review committee to find out the reasons for unstable stock prices.
Assumptions:
The investors may regain confidence in stock market by this decision.
The review committee has the expertise to find out the causes for volatility in the stock market.
Options
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
Correct Answer
Both I and II are implicit
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.
Statement and Assumption problems
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1. Statement: Greater public participation results in good civic governance. - Statement of Municipal Commissioner of City A.
Assumptions:
The municipal office is not competent to effect good civic administration.
Good civic governance is a matter of collective will and effort of the people and administration.
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.
2. Statement: Safety and health practices in many Indian companies are well below the international standards.
Assumptions:
International standards of health and safety are ideal and unrealistic.
Indian organizations do not consider safety and health management as their prime social responsibility.
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.
3. Statement: Because of the large number of potholes in road X, reaching airport in time has become difficult.
Assumptions:
Reaching airport in time may not be always necessary.
The statement presents the issue of 'not reaching airport in time' as a problem. This means that reaching airport in time is necessary. So, I is not implicit. Besides, it is mentioned that reaching airport in time has become difficult due to large number of potholes in road X. This implies that road X is the only possible way. So, II is implicit.
4. Statement: Beware of dogs, our dogs do not bark, but they are trained to distinguish between genuine guests and intruders.
The statement clearly warns the visitors to beware of dogs as they are trained to welcome the guests and intruders differently. So, II is implicit. I is vague and hence, it is not implicit.
5. Statement: The first step in treating addicts is to re-establish their lost ties, for which a continuous personal attention should be paid to the addicts under treatment.
Assumptions:
Addicts under treatment respond better when shown personal interest.
Addiction and strained relationships are intimately connected.
Clearly, treatment of addiction requires personal attention as the first step. So, I is implicit. Also, since intimacy and personal attention are required to treat addicts, it implies that addiction arises out of frustration due to strained relationships. So, II is also implicit.
6. Statement: Please note that the company will provide accommodation to only outside candidates if selected.' - A condition in an advertisement.
Assumptions:
The local candidates would be having some other arrangement for their stay.
The company plans to select only local candidates.
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.
7. Statement: Cases of food poisoning due to consumption of liquor are increasing in rural areas.
Assumptions:
Percentage of people consuming liquor is more in rural areas.
There are many unauthorized spurious liquor shops in the rural areas.
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.
8. Statement: Lack of stimulation in the first four or five years of life can have adverse consequences.
Assumptions:
A great part of the development of observed intelligence occurs in the earliest years of life
50 percent of the measurable intelligence at age of 17 is already predictable by the age of four.
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.
9. Statement: The X-Airlines has decided to increase the passenger fare by 15 percent with immediate effect.
Assumptions:
The demand for seats of X-Airlines may remain unchanged even after the hike of fare.
Other airline companies may also hike the passenger fares.
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.
10. 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:
The bank has a practice of granting loans for Rs. 1,00,000 and above.
The bank accepts house as collateral security against such loans.
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.