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.
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
Only assumption I is implicit
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.
Statement and Assumption problems
Search Results
1. 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.
2. 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.
3. 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.
4. 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.
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.
5. 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.
6. 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.
7. Statements: In a one day cricket match, the total runs made by a team were 200. Out of these 160 runs were made by spinners.
According to the statement, 80% of the total runs were made by spinners. So, I does not follow. Nothing about the opening batsmen is mentioned in the statement. So, II also does not follow.
8. Statements: The old order changed yielding place to new.
Clearly, I directly follows from the given statement. Also, it is mentioned that old ideas are replaced by new ones, as thinking changes with the progressing time. So, II does not follow.
9. Statements: Government has spoiled many top ranking financial institutions by appointing bureaucrats as Directors of these institutions.
Conclusions:
Government should appoint Directors of the financial institutes taking into consideration the expertise of the person in the area of finance.
The Director of the financial institute should have expertise commensurate with the financial work carried out by the institute.
According to the statement, Government has spoiled financial institutions by appointing bureaucrats as Directors. This means that only those persons should be appointed as Directors who are experts in finance and are acquainted with the financial work of the institute. So, both I and II follow.
10. Statements: Population increase coupled with depleting resources is going to be the scenario of many developing countries in days to come.
Conclusions:
The population of developing countries will not continue to increase in future.
It will be very difficult for the governments of developing countries to provide its people decent quality of life.
The fact given in I is quite contrary to the given statement. So, I does not follow. II mentions the direct implications of the state discussed in the statement. Thus, II follows.