Statement and Assumption

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.

Statement:
The company has decided to increase the price of all its products to tackle the precarious financial position.

Assumptions:
I. The company may be able to wipe out the entire losses incurred earlier by this decision.

II. The buyers may continue to buy its products even after the increase.

III. The company has adequate resources to continue production for few more months.

Answer: (a)

It is mentioned that the company has taken the decision to make up for the financial deficit. So, I is implicit. The response of the buyers to the increased prices cannot be deduced from the statement. So, II is not implicit. Since the company seeks to improve its financial position by increasing the prices of its products, so III is also implicit.

Statement:
In spite of the heavy rains the traffic has not been disrupted this year.

Assumptions:
I. The traffic is disrupted in rainy seasons only.

II. Rains do not affect traffic movement.

III. Adequate precautions were taken for traffic management during rainy season.

Answer: (c)

The statement expresses surprise at the traffic situation remaining normal even after rains. This means that rains affect traffic. So, II is not implicit. But this does not mean that only rains affect traffic. So, I is also not implicit. Since the traffic was not affected during rains as expected, so III is implicit.

Statement:
Delink degrees with jobs. Then, boys will think twice before joining colleges.

Assumptions:
I. Boys join college education for getting jobs.

II. A degree is of no use for getting a job.

III. Girls do not try for jobs.

Answer: (a)

The statement mentions that if the degrees have no connection with jobs, boys will consider and reconsider whether they should join college. So, I is implicit. In the present system, degrees are not delinked with jobs. This means that job is not available without degrees. So, II is not implicit. Nothing about the girls is mentioned in the statement. So, III is also not implicit.

Statement:
Everybody loves reading adventure stories.

Assumptions:
I. Adventure stories are the only reading material.

II. Nobody loves reading any other material.

III. All are literate.

Answer: (a)

The statement mentions that adventure stories are liked by everybody. This does not mean that there is no other reading material or nobody loves reading any other material. So, neither I nor II is implicit. Besides, 'everybody' in the statement stands for 'all literate people' and not for 'all people'. So, III is also not implicit.

Statement:
The simplest and the most cost-effective way to upgrade your home Exchange your old furniture and get 25% to 33% off on the new furniture.’ – An advertisement of a furniture company.

Assumptions:
I. Nowadays, there is no demand for furniture products unless some attractive scheme is offered.

II. Some customers always desire to have best quality and do not bother either for cost or for convenience.

III. Some customers want to keep their home up-to-date with reasonable cost and with less hassles.

Answer: (c)

The advertisement has put forward an exchange offer does not imply that there is no demand for furniture products without an offer. So, I is not implicit. Since the advertisement highlights both 'simplest' and 'cost-effective', so II is not implicit. Further, the advertisement mentions that people can buy new furniture at discounted price without the hassles of disposing off the old one. Hence, only III is implicit.

Statement:
During pre-harvest kharif season, the government has decided to release vast quantity of food grains from FCI.

Assumptions:
I. There may be a shortage of food grains in the market during this season.

II. The kharif crop may be able to replenish the stock of FCI.

III. There may be a demand from the farmers to procure kharif crop immediately after harvest.

Answer: (a)

Assumptions I and II provide the most probable reasons for the step taken by the government. So, both I and II are implicit. Since the foodgrains have been released during pre-harvest kharif season, it is evident that the next kharif crop would replenish the stock. So, III is also implicit.

Statement:
In view of the recent spurt in sugar prices in the open market, the government has asked the dealers to release a vast quantity of imported sugar in the open market.

Assumptions:
I. The dealers will follow the government directive.

II. The sugar prices will come down.

III. The price of indigenous sugar will remain unchanged.

Answer: (a)

The government's decision is clearly a measure to increase supply and control rates. So, both I and II are implicit, while III is not.

Statement:
“If you are beautiful, we will catch your beauty. If you are not, we will make you beautiful.” – An advertisement of a photo studio.

Assumptions:
I. How to look beautiful is a problem of youngsters.

II. A photograph can be beautiful even if a person is not.

III. People like to be considered beautiful.

Answer: (b)

Clearly, the advertisement is meant for people of all age groups and so assuming a fact only in relation to youngsters is vague. So, I is not implicit. Also, the studio promises to make those people 'beautiful' who are not. This makes II implicit. Further, the advertisement is meant for persons who desire to be beautiful. So, III is implicit.

Statement:
Wars must be discouraged vehemently even though majority of the victims might have been a nuisance to peace loving people.

Assumptions:
I. Wars kill majority of wicked people.

II. Innocent people are also killed in wars.

III. Vehement opposition to wars may have some desirable impact.

Answer: (d)

The statement mentions that'.....majority of the victims might have been a nuisance to peace loving people. This implies that majority of the victims are wicked people though some victims are innocent people too. So, both I and II are implicit. Further, the statement advocates vehement opposition of wars. So, III is also implicit.

Statement:
“Join X-tuition classes for sure success. Excellent teaching by excellent teachers is our strength.” – An advertisement.

Assumptions:
I. Sure success is desirable.

II. Students expect sure success when they join any tuition class.

III. Just having excellent teachers does not ensure success.

Answer: (a)

The advertisement seeks to attract the students by promising them sure success. So, both I and II are implicit. Assumption III does not follow from the statement and so is not implicit.

Statement:
“Work hard to be successful in the examinations.” – A advises B. Assumptions:

Assumptions:
I. B listens to As advice.

II. Passing the examination is desirable.

III. Hard practice leads to success.

Answer: (b)

Whether B listens to A's advice or not, is not given in the statement So, I is not implicit. The advice is given on the behaviour that should be followed to pass the examination. This shows the necessity to pass the examination. So, II is implicit Passing the examination is a form of success to be attained by hard practice. So, III is also implicit.

Statement:
The Government of India has set up one-stop facilitation counters manned by trained staff for attending to various needs of the foreign tourists at all the international airports.

Assumptions:
I. There is adequate trained staff available to man these counters in shifts.

II. The services provided by these counters will help boosting inflow of foreign tourists.

III. Majority of the foreign tourists need variety of services when they reach India.

Answer: (d)

Since the Government has already set up such counters, it implies that they have adequate staff to handle the same. So, I is implicit. Besides, such counters have been set up to make the foreign tourists feel at home when they visit our country. So, this will surely be an advantage to foreign tourists. This also implies that foreign tourists do need such services. Hence, both II and III are also implicit.

Statement:
India’s economic growth has come at a terrible price of increased industrial and vehicular pollution.

Assumptions:
I. Pollution is a part of industrial society.

II. Indian economic growth is based on only industrial growth.

III. A country desires economic growth with manageable side effects.

Answer: (d)

The statement mentions that India had to pay the price of increased pollution level to earn its economic growth. So, both I and III are implicit. However, this does not imply that only industrial growth has brought about India's economic growth. So, II is not implicit.

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

Assumptions:
I. Items in small shops are never reliable.

II. Persons managing big showrooms are cheats.

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

Answer: (d)

Clearly, only III defines the correct essence of the statement and hence is implicit.

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

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

III. 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.

Statement:
“Do not lean out of the moving train.” – A warning in the railway compartment.

Assumptions:
I. Such warnings will have some effect.

II. Leaning out of a moving train is dangerous.

III. It is the duty of railway authorities to take care of passengers’ safety.

Answer: (e)

The warning against leaning out of moving train is made to heed against the dangers involved. So, both I and II are implicit. Since the warning has been put up in the railway compartment, so III is also implicit.

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

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

III. 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.

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:
I. There is possibility of any serious eventuality.

II. Dates are fixed for all the assignments.

III. 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.

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

Assumptions:
I. The banks may still give loans to the defaulters.

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

III. 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.

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

Assumptions:
I. Brilliant students prefer to join coaching classes.

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

III. 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.

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

II. Service sector is not managed properly in India.

III. 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.

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:
I. The State Government may be able to implement its decision.

II. The Central Government may agree to support the State Government’s decision.

III. 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.

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

Assumptions:
I. Normally people like durable shoes.

II. Very few people read advertisement in a newspaper.

III. 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.

Statement:
“We must introduce objective type tests to improve our examinations for admission to MBA.” – The Chairman of the Admission Committee tells the Committee.

Assumptions:
I. The admission at present is directly through the interview.

II. The Admission Committee is desirous of improving the admission examinations.

III. The Chairman himself is an MBA.

Answer: (b)

Nothing about the present method of admission or the qualification of the Chairman is mentioned in the statement. So, neither I nor III is implicit. Assumption II directly follows from the statement. So, II is implicit.

Statement:
Let us increase the taxes to cover the deficit.

Assumptions:
I. The present taxes are very low.

II. Deficit in a budget is not desirable.

III. If the taxes are not increased, the deficit cannot be met.

Answer: (b)

Clearly, the statement shows that the present taxes are not sufficient to meet the deficit but they may still be high. So, I is not implicit. Since the statement talks of covering the deficit, so II is implicit. Also, the taxes are increased to meet the deficit. So, III is also implicit.

Statement:
“I want to present a book on techniques of yoga to Ajay on his birthday.”- A tells B.

Assumptions:
I. A will be invited by Ajay on his birthday.

II. The person, to whom the book is to be presented, is not keeping good health.

III. Book is an acceptable gift for birthday.

Answer: (c)

Since A has decided to gift a book to Ajay on his birthday, it is quite evident that he will be invited by Ajay and that a book is an acceptable gift. So, both I and III are implicit. Nothing about the state of health of the person can be deduced from the statement. So, II is not implicit.

Statement:
“We have the distinction of being the only company in India as well as the second in the world to have won an ISO 9002 certification in our line of business.” – Statement of Company X’s Chairman.

Assumptions:
I. There were not many companies in the line of business of Company X.

II. Getting ISO 9002 in the line of business of Company X is not easy.

III. The Company X desires to expand its business.

Answer: (d)

The statement mentions that there are only two companies in this line of business which are ISO 9002 certified. But nothing about the total number of companies in this line can be deduced. So, I is not implicit. Also, had it been easy to get ISO 9002 certification, there would have been a large number of ISO 9002 companies. So, II is implicit. Also, the company must have reached up to such high international standards to make its mark in its line of business. So, III is also implicit.

Statement:
The residents of the locality wrote a letter to the Corporation requesting to restore normalcy in the supply of drinking water immediately as the supply at present is just not adequate.

Assumptions:
I. The Corporation may not take any action on the letter.

II. The municipality has enough water to meet the demand.

III. The water supply to the area was adequate in the past.

Answer: (d)

The Corporation's response to the letter cannot be deduced from the statement. So, I is not implicit. The municipality's position in regard to water supply is also not mentioned. So, II is also not implicit. Since the residents talk of 'restoring' normalcy, it means that water supply was adequate in the past. So, III is implicit.

Statement:
Bombay people were spellbound, mesmerized and got mad when they saw the famous pop-singer Michael Jackson’s hi-tech pulsating megawatt performance.

Assumptions:
I. When a show is accompanied with latest technology, it has a magical effect.

II. Bombay people were never impressed with performances by Indian musicians.

III. Michael Jackson is a super singer.

Answer: (c)

The use of the words 'hi-tech pulsating mega-watt performance' in the statement makes I implicit. Nothing is mentioned about the performances of Indian musicians. So, II is not implicit. The facts that Michael Jackson is a pop-singer and his performance left people spellbound make III implicit.

Statement:
“Fly with us and experience the pleasure of flying.”- An advertisement by an airlines.

Assumptions:
I. More passengers may be attracted to travel by the airline after reading the advertisement.

II. People generally may prefer an enjoyable flight.

III. Other airlines may not be offering the same facilities.

Answer: (e)

Clearly, the advertisement is meant to lure the passengers into travelling by the airline. So, I is implicit. Also, the advertisement promises an enjoyable flight. So, II is also implicit. The facilities offered by other airlines cannot be ascertained from the statement. So, III is not implicit.

Statement:
“X-chocolate is ideal as a gift for someone you love.” – An advertisement.

Assumptions:
I. People generally give gifts to loved ones.

II. Such advertisements generally influence people.

III. Chocolate can be considered as a gift item.

Answer: (d)

Clearly, all the three directly follow from the given statement.

Statement:
There is big boom in drug business and a number of jhuggi-jhopari dwellers in Delhi can be seen pedalling with small pouches of smack and brown sugar.

Assumptions:
I. Drug addiction is increasing in the country, specially in the capital.

II. All the big dons involved in the smuggling of drugs live in jhuggi-jhopari areas.

III. Most of the jhuggi-jhopari dwellers would do anything for money.

Answer: (d)

The statement talks of boom in drug business and cites examples from the capital city. This makes I implicit. Further, it is given that most jhuggi-jhopari dwellers are seen to indulge in transactions of drug pouches. This implies that they give in to their lust for money quite easily and do not hesitate to get involved in illegal activities for the same. So, III is implicit while II is not.

Statement:
“We do not want you to see our product on newspaper, visit our shop to get a full view.” – An advertisement.

Assumptions:
I. People generally decide to purchase any product after seeing the name in the advertisement.

II. Uncommon appeal may attract the customers.

III. People may come to see the product.

Answer: (c)

It can be inferred from the statement that people also like to see a product before buying. So, I is not implicit. Also, the statement is just an attempt to arouse the people to come and see the shop. So, both II and III are implicit.

Statement:
This book is so prepared that even a layman can study science in the absence of a teacher.

Assumptions:
I. A layman wishes to study science without a teacher.

II. A teacher may not always be available to teach science.

III. A layman generally finds it difficult to learn science on its own.

Answer: (b)

Clearly, the statement is made to impress the usefulness of the book. It does not mention the desire of a layman. So, I is not implicit. Also, the book is intended to guide one when a teacher is not available. So, both II and III are implicit.

Statement:
“Wanted a two bedroom flat in the court area for immediate possession.” – An advertisement.

Assumptions:
I. Flats are available in court area.

II. Some people will respond to the advertisement.

III. It is a practice to give such an advertisement.

Answer: (b)

The advertisement depicts only the requirement, not the availability of flats in court area. So, I is not implicit. Such advertisements are given with the expectation of a response which can make such a flat available. So, II is implicit. Assumption III does not follow from the statement and so is not implicit.