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Statement and Assumption - Verbal and Reasoning

Directions to SolveIn each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.Give answer
  • (A) If only assumption I is implicit
  • (B) If only assumption II is implicit
  • (C) If either I or II is implicit
  • (D) If neither I nor II is implicit
  • (E) If both I and II are implicit.
Q1:

Statement: The X-Airlines has decided to increase the passenger fare by 15 percent with immediate effect. Assumptions:
  1. The demand for seats of X-Airlines may remain unchanged even after the hike of fare.
  2. Other airline companies may also hike the passenger fares.

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

ANS:A - 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.