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Statement - Assumptions Questions and Answers

Important Instructions
Direction for [ Question No: 21 To 30 ] :

In each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.

21.

Statement: Use 'X' brand shoes. These are durable and available in all sizes. - An advertisement in the newspaper A.

Assumptions:

1. Normally people like durable shoes.

2. Very few people read advertisement in a newspaper.

3. Very few people read the newspaper A

Answer: E

Any advertisement highlights only the desirable qualities of the product. So, I is implicit. The 'X' brand has advertised its product in newspaper A. This implies that a large section of people reads advertisements in newspapers and that newspaper A too has a wide circulation. So, neither II nor III is implicit.

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22.

Statement: The State Government has unilaterally increased by five percent octroi on all commodities entering into the state without seeking approval of the Central Government.

Assumptions:

1. The State Government may be able to implement its decision.

2. The Central Government may agree to support the State Government's decision.

3. The State Government may be able to earn considerable amount through the additional octroi

Answer: C

Since the State Government has increased the octroi, so I is implicit. Since the decision has been taken without the approval of the Central Government, it implies that Central Government would not confront the new policy. So, II is implicit. Since octroi is collected by the state on all commodities entering the state, so III is also implicit.

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23.

Statement: In the recently held All India Commerce Conference the session on 'Management of Service Sector in India' surprisingly attracted large number of participants and also received a very good media coverage in the leading newspapers.

Assumptions:

1. People were not expecting such an encouraging response for service sector.

2. Service sector is not managed properly in India.

3. Media is always very positive towards service sector

Answer: B

Since the response was 'surprising', so I is implicit. Nothing about the real management of service sector can be deduced from the statement. So, II is not implicit. Also, the statement talks of the media's response to only a particular session on service sector and not all in general. So, III is also not implicit.

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24.

Statement: "If you are intelligent, we are the right people for improving your performance." - An advertisement of a coaching institute.

Assumptions:

1. Brilliant students prefer to join coaching classes.

2. Coaching classes help the students to improve their performance.

3. No other institute provides such coaching.

Answer: A

Since the advertisement invites 'Intelligent' students by promising them an improved performance through their exceptional coaching, so both I and II are implicit. However, nothing can be assumed about other institutes as the given advertisement talks of only a particular institute. So, III is not implicit.

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25.

Statement: The Reserve Bank of India has directed the banks to refuse fresh loans to major defaulters.

Assumptions:

1. The banks may still give loans to the defaulters.

2. The defaulters may repay the earlier loan to get fresh loan.

3. The banks may recover the bad loans through such harsh measures.

Answer: C

Clearly, loans to only major defaulters is being refused. So, the banks may still give loans to some defaulters. Thus, I is implicit. Also, the RBI's decision is a measure to recover the previous loans, since one would have to clear the old debts so as to get a fresh loan. So, both II and III are also implicit.

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26.

Statement: We must be prepared to face any eventuality and all the assignments must be completed as per their schedule - Director tells the Faculty members.

Assumptions:

1. There is possibility of any serious eventuality.

2. Dates are fixed for all the assignments.

3. Faculty members are supposed to complete all the assignments.

Answer: E

Since the Director talks of being prepared to face any eventuality, so I is implicit. It is mentioned that a schedule for completing the assignments has been drawn up. So, II is implicit. The fact that the statement is directed to all the faculty members makes III implicit.

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27.

Statement: An advertisement of Bank X - "Want to open a bank account! Just dial our 'home service' and we will come at your doorsteps."

Assumptions:

1. No other bank makes available service at the doorstep of the customer.

2. People may choose Bank X for their financial transactions.

3. Nowadays banking has become very competitive.

Answer: D

The advertisement seeks to attract people to open their account in Bank X by promising them service at their doorstep. Since home service' has been used as a tool for earning clientage, so I is implicit. Also, the advertisement seeks to impress upon the people's minds how simple it has become to open an account. This may attract more account holders to Bank X. So, II is implicit. Further, providing banking services at home means that banking has become so competitive that door-to-door service is being provided by the Bank to attract people. Hence, III is also implicit.

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28.

Statement: "Do not lean out of the moving train." - A warning in the railway compartment.

Assumptions:

1. Such warnings will have some effect.

2. Leaning out of a moving train is dangerous.

3. It is the duty of railway authorities to take care of passengers' safety.

Answer: E

Correct answer: All are implicit

The notice presupposes all three: that a warning will have some effect, else there would be no point posting it; that leaning out is dangerous, else there would be nothing to warn against; and that looking after passengers falls to the railway, else it would not be the railway’s notice. All are implicit.

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29.

Statement: Tender specification will not be issued to the firms where there is 25% or more default in supplies against earlier purchase orders placed on them' - Condition of a Company X inviting tenders for the purchase of material.

Assumptions:

1. The Company X will be watching the quality of performance of its suppliers.

2. This time the firms should keep the percentage of default as less as possible.

3. The Company X expects quality and professional approach from its suppliers.

Answer: E

Since Company X intends to invite tenders only from those companies which have not been defaulters earlier, so both I and III are implicit. Besides, to have long term business relations with Company X, every firm needs to perform well in its supplies. So, II is also implicit.

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30.

Statement: Items in big showrooms in main markets are costlier than similar items in small shops.

Assumptions:

1. Items in small shops are never reliable.

2. Persons managing big showrooms are cheats.

3. Maintenance of big showrooms is an expensive affair in itself; hence the prices are a little higher.

Answer: D

Correct answer: Only III is implicit

The higher prices are explained by the cost of keeping up a large showroom, which is assumption III. Assumption I condemns the small shops as unreliable and assumption II calls the showroom owners cheats - neither of which a difference in price requires. Only III is implicit.

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