Logical Reasoning - 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.

1. 

Statement: In order to reduce the gap between income and expenditure, the company has decided to increase the price of its product from next month.

Assumptions:

  1. The rate will remain more or less same after the increase.
  2. The expenditure will more or less remain the same in near future.
  3. The rival companies will also increase the price of the similar product.

A. Only I and II are implicit
B. Only II and III are implicit
C. Only III is implicit
D. All are implicit
E. None of these

Answer: Option E

Explanation:

Clearly, the company intends to reduce the gap between income and expenditure by increasing the price of its product i.e. by keeping the expenditure unaltered and increasing the income only. So, II is implicit while I is not. However, the rival companies may or may not follow the same pursuit. So, III is not implicit.

2. 

Statement: 'Several labour and industrial courts in this State have no proper premises. Vacancies of judges and stenos are kept pending.' - A statement of a retired judge of State X.

Assumptions:

  1. Adequate number of staff and judges helps in the smooth functioning of the industrial and labour courts.
  2. The State is not bothered about the condition of the labour and industrial courts.
  3. Physical facilities of an office help in increasing efficiency of its employees.

A. Only I and III are implicit
B. Only II is implicit
C. Only II and III are implicit
D. All I, II and III are implicit
E. None of these

Answer: Option D

Explanation:

The statement expresses grave concern over the lack of proper premises and inadequate staff in labour and industrial courts. This implies that adequate staff is a must to serve the purpose of these courts and a proper office only can ensure their smooth functioning. So, both I and III are implicit. The lack of facilities to the courts also indicates the state's negligent attitude to the condition of the courts. So, II is also implicit.

3. 

Statement: "A rare opportunity to be a professional while you are at home." - An advertisement for computer literate housewives by a computer company.

Assumptions:

  1. Some housewives simultaneously desire to become professional.
  2. Computer industry is growing at a fast pace.
  3. It is possible to be a professional as well as a housewife.

A. Only I and II are implicit
B. Only II and III are implicit
C. Only I and III are implicit
D. Only II is implicit
E. None of these

Answer: Option C

Explanation:

Clearly, a company would highlight only that feature in its advertisement which people crave for and which it can make possible. So, both I and III are implicit. Nothing can be deduced about the growth of computer industry. So, II is not implicit.

4. 

Statement: Pramod decided to get the railway reservation in May, for the journey he wants to make in July, to Madras.

Assumptions:

  1. The railways issues reservations two months in advance.
  2. There are more than one trains to Madras.
  3. There will be vacancy in the desired class.

A. Only I is implicit
B. Only II and III are implicit
C. Only I and III are implicit
D. All are implicit
E. None of these

Answer: Option A

Explanation:

Clearly, since Pramod decides to get the reservation in May for the journey in July, so I is implicit. The number of trains to Madras or the position of vacancies in different classes cannot be deduced from the given statement. So, neither II nor III is implicit.

5. 

Statement: "To make the company commercially viable, there is an urgent need to prune the staff strength and borrow money from the financial institutions." - Opinion of a consultant.

Assumptions:

  1. The financial institutions lend money for such proposals.
  2. The product of the company has a potential market.
  3. The employees of the company are inefficient.

A. None is implicit
B. All are implicit
C. Only I and II are implicit
D. Only II and III are implicit
E. Only I and III are implicit

Answer: Option C

Explanation:

Since the consultant talks of borrowing money from financial institutions, so I is implicit. That the owners wish to make the company 'commercially viable' makes II implicit. Also, it is mentioned that staff strength is to be reduced to make the company 'commercially viable'. So, III is not implicit.

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