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21 Sep 2020, 07:30
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Difficulty:
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64% (02:32) correct
36%
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based on 470
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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.
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.
yashikaaggarwal
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21 Sep 2020, 08:20
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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.
Let the total no. of students who applied for graduate program =100
out of which 3 represent 3% who are been detected as loan defaulters that is 3/4 of total defaulters
so rest 1 is included in 97 who are tested and passed the loan defaulter test.
The assumption followed here is:
A. Before being processed, the applications from individuals in default on their government-guaranteed student loans are not rejected for other reasons. (The stats do not consider the after elimination process, that's why they are considering that the people who passed the loan defaulter test actually get admission, what if the 1 student who passed test is been eliminated later?, then the argument will nullify)(CORRECT)
B. Applicants in default on their government-guaranteed student loans will not make any loan payments in the future. (The future is not considered while establishing the argument, assumption is considered before making argument not the after math of the argument)(Irrelevant)
C. In all likelihood, more than 3 percent of the applications actually fail the default test. (Only 3% are been subjected to fail the loan defaulter test)(Incorrect)
D. Only a small fraction of the individuals in default on their government-guaranteed student loans apply to graduate school. (We are not stated any stats regarding the number of loan defaulter students who apply for graduate schools, we just know are 4% of total students but not the total no. of students) (Incorrect)
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. (There are no such statistics taken into consideration regarding students who do not apply to any graduate school, Just Graduate School data is taken into consideration) (Incorrect)
Answer is A
Let the total no. of students who applied for graduate program =100
out of which 3 represent 3% who are been detected as loan defaulters that is 3/4 of total defaulters
so rest 1 is included in 97 who are tested and passed the loan defaulter test.
The assumption followed here is:
A. Before being processed, the applications from individuals in default on their government-guaranteed student loans are not rejected for other reasons. (The stats do not consider the after elimination process, that's why they are considering that the people who passed the loan defaulter test actually get admission, what if the 1 student who passed test is been eliminated later?, then the argument will nullify)(CORRECT)
B. Applicants in default on their government-guaranteed student loans will not make any loan payments in the future. (The future is not considered while establishing the argument, assumption is considered before making argument not the after math of the argument)(Irrelevant)
C. In all likelihood, more than 3 percent of the applications actually fail the default test. (Only 3% are been subjected to fail the loan defaulter test)(Incorrect)
D. Only a small fraction of the individuals in default on their government-guaranteed student loans apply to graduate school. (We are not stated any stats regarding the number of loan defaulter students who apply for graduate schools, we just know are 4% of total students but not the total no. of students) (Incorrect)
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. (There are no such statistics taken into consideration regarding students who do not apply to any graduate school, Just Graduate School data is taken into consideration) (Incorrect)
Answer is A
21 Oct 2021, 02:02
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