Find all School-related info fast with the new School-Specific MBA Forum

It is currently 02 Jul 2015, 04:54

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

cr - grad school

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Manager
Manager
avatar
Joined: 13 Feb 2005
Posts: 63
Location: Lahore, Pakistan
Followers: 1

Kudos [?]: 0 [0], given: 0

cr - grad school [#permalink] New post 16 Feb 2005, 19:15
Graduate schools have begun to check whether applicants for admission are in default on government-guaranteed student loans. Any application submitted by an applicant who fails this test is not processed. Though all applications are tested, it is thought that the 3 percent of the applications that fail represent only three-quarters of the incoming applications from individuals in default. Consequently, approximately 1 percent of the applications that are processed are those of applicants in default who remain undetected.

Which of the following is an assumption in the argument above?

a-Before being processed, the applications from individuals in default on their government-guaranteed student loans are not rejected for other reasons.

b-Applicants in default on their government-guaranteed student loans will not make any loan payments in the future.

c-In all likelihood, more than 3 percent of the applications actually fail the default test.

d-Only a small fraction of the individuals in default on their government-guaranteed student loans apply to graduate school.


e-Individuals in default on their government-guaranteed student loans apply to graduate school in the same numbers in which they do not apply to graduate school.
Director
Director
avatar
Joined: 19 Nov 2004
Posts: 563
Location: SF Bay Area, USA
Followers: 3

Kudos [?]: 75 [0], given: 0

 [#permalink] New post 16 Feb 2005, 19:41
3 percent of the applications that fail represent only three-quarters of the incoming applications from individuals in default.

Consequently, approximately 1 percent of the applications that are processed are those of applicants in default who remain undetected

3% incoming = 3/4 of the defaulted
=> 1/4 of defaulted = 1%

Between these two statements the assumption is that all applications that were incoming and had defaulted were 'processed', otherwise the percentages don't add up

A)
Current Student
avatar
Joined: 28 Dec 2004
Posts: 3387
Location: New York City
Schools: Wharton'11 HBS'12
Followers: 14

Kudos [?]: 186 [0], given: 2

 [#permalink] New post 16 Feb 2005, 19:53
A it is...

implies that there in no other mechanism of catching these defaulters and therefore such a filter is needed to be application processing.
VP
VP
User avatar
Joined: 25 Nov 2004
Posts: 1494
Followers: 6

Kudos [?]: 39 [0], given: 0

 [#permalink] New post 16 Feb 2005, 22:05
A or B?

Whay not B, guys?
Director
Director
avatar
Joined: 19 Nov 2004
Posts: 563
Location: SF Bay Area, USA
Followers: 3

Kudos [?]: 75 [0], given: 0

 [#permalink] New post 16 Feb 2005, 22:08
I think B is a bit out of context and a strong assumption.
I avoid strong choices.
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jul 2004
Posts: 5068
Location: Singapore
Followers: 23

Kudos [?]: 192 [0], given: 0

 [#permalink] New post 16 Feb 2005, 22:42
(A) for me.
- If no individuals are rejected for other reasons, then 1/4 of the undetected defaulters could be due to the argument above.
Director
Director
avatar
Joined: 03 Nov 2004
Posts: 868
Followers: 1

Kudos [?]: 19 [0], given: 0

 [#permalink] New post 17 Feb 2005, 10:16
One more for 'A'
'B' is out of context because we are not interested in finding out why these people were not processed, we need to find the assumption for the conclusion "approximately 1 percent of the applications that are processed are those of applicants in default who remain undetected"
Senior Manager
Senior Manager
User avatar
Joined: 07 Oct 2003
Posts: 358
Location: Manhattan
Followers: 2

Kudos [?]: 8 [0], given: 0

 [#permalink] New post 01 Mar 2005, 06:40
I jump on the band-wagon with an A

OA?
  [#permalink] 01 Mar 2005, 06:40
    Similar topics Author Replies Last post
Similar
Topics:
Experts publish their posts in the topic Something must be done to stop spam. In early days, people rampuria 18 05 Mar 2009, 07:45
1 CR : HIGH SCHOOL SENIORS amitdgr 18 30 Oct 2008, 04:15
Cr-Scientists 12345678 2 01 Oct 2007, 07:06
cr - resources biggamejames 23 27 Jun 2006, 07:12
school chemicals cr joemama142000 7 17 Apr 2006, 02:26
Display posts from previous: Sort by

cr - grad school

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.