Quote:
A private bus company gained greater profits and provided bus service to the area at lower fares by running buses more frequently and stimulating greater ridership. Hoping to continue these financial trends, the company plans to replace all older buses with new, larger buses, including some double-decker buses.
The plan of the bus company as described above assumes all of the following EXCEPT
(A) the demand for bus service in the company’s area of service will increase in the future
(B) increased efficiency and revenues will compensate for any new expenses the company incurs
(C) the new buses will be sufficiently reliable to ensure the company a net financial gain once they are in place
(D) driving the new buses will be no more difficult than driving the buses they are to replace
(E) the larger, double-decker buses will not face obstacles such as height and weight restrictions in the bus company’s area of service
Background info: A private bus company increased its profits and lowered its fares.
Premise: It was able to do so by running buses more frequently and stimulating greater ridership.
Plan: The company plans to replace its older buses with new, larger buses, including some double-deckers.
Goal of the plan: They hope to continue the trend of greater profits and lower fares.
We’re identifying assumptions the plan relies on.
A. This is a necessary assumption. If they’re going to increase the supply of bus service with the hope of increasing revenue, then there must be increased demand to meet that supply.
B. Also a necessary assumption. Their plan for continued increased profits requires that the efficiency and revenues of the new buses will outweigh any new expenses.
C. Another necessary assumption. The buses must be sufficiently reliable to earn the company a net financial gain, as part of increased profits.
D. This one isn’t necessary. We’re not concerned with driving difficulty.
E. This is a necessary assumption. If it wasn’t met, and the new double-decker buses did face obstacles, then that would impede their ability to operate efficiently in the company’s service area.
Best answer is D.