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Discussion :: Statement and Assumption

  1. 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.

  2. 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

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    Answer : Option A

    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.


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