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Logical Reasoning - Statement and Assumption - Discussion

Discussion Forum : Statement and Assumption - Section 6 (Q.No. 36)
Statement and Assumption
Directions to Solve

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.

36.

Statement: The X passenger car manufacturing company announced a sharp reduction in the prices of its luxury cars.

Assumptions:

  1. There may be an increase in the sale of luxury cars of Company X.
  2. The other such car manufacturers may also reduce their prices.
  3. The competitor companies may not reduce their prices.

Only I is implicit
Only I and II are implicit
None is implicit
Only I and III are implicit
None of these
Answer: Option
Explanation:
The reduction in prices is clearly a step to promote sales of the company. So, I is implicit. However, other companies may or may not follow the same pursuit. So, either II or III is implicit.
Discussion:
9 comments Page 1 of 1.
Arpit rai said:   2 years ago
What is the difference between 3rd and 5th options? Please explain.
Ritu said:   4 years ago
Since both the options regarding competitor companies are given, one of them will be true. So the answer should be 'I and either II or III are implicit ', which is not provided so, the answer is option E (none of these).
Mahesh said:   6 years ago
Yes. You are right @Subash.
Aarushi said:   8 years ago
The answer will be 1 is implicit as there is no clue that other companies in future may increase or decrease that will be the effect to the cause. Rather we are assuming means the precondition for the statement given is considered valid. In real world too, on any company's agenda main focus is on the sale/purchase/profit rather than competitors will follow their line of action or not.
Subash said:   9 years ago
The second and third option says "may" so I think both 2 and 3 goes in line as well.
Y J said:   9 years ago
I think the test writers got this answer wrong. They confused "assumption" with "conclusion that follows" here. You can see that in their explanation that choice I is an implicit assumption.

But it's NOT an assumption that's implicit in the statement. Instead, we could assume that it would follow from the facts of the statement.
PROS said:   1 decade ago
Clearly option I follows the logic and therefore the answer should be A.
Dinesh said:   1 decade ago
Ya I'm agree with @Baruni. Because the statement does not show the mentality of other companies.
Baruni said:   1 decade ago
The explanation says that the first assumption is implicit but the answer is E.

Shouldnt the answer be A in that case?
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