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Statement 1 tells us almost nothing about those answering neither question correctly (it does tell us that at least 5 people answered a question correctly, so at most 115 did not, which isn't too helpful here), and Statement 2 tells us almost nothing about those answering exactly one question correctly, so neither can be sufficient.

Statement 1 tells us the ratio of "both right" to "only one right" is 1 to 4
Statement 2 tells us the ratio of "both right" to "none right" is 1 to 3
So the ratio of "both" to "only one" to "none" is 1 to 4 to 3, and 3/8 of the 120 people, or 45 people, answered neither question correctly. So the answer is C.
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IanStewart
Statement 1 tells us almost nothing about those answering neither question correctly (it does tell us that at least 5 people answered a question correctly, so at most 115 did not, which isn't too helpful here), and Statement 2 tells us almost nothing about those answering exactly one question correctly, so neither can be sufficient.

Statement 1 tells us the ratio of "both right" to "only one right" is 1 to 4
Statement 2 tells us the ratio of "both right" to "none right" is 1 to 3
So the ratio of "both" to "only one" to "none" is 1 to 4 to 3, and 3/8 of the 120 people, or 45 people, answered neither question correctly. So the answer is C.

Hi Ian,
How did you arrive at the ratio?

I think I'm not understanding what exactly the statements are saying.
If 20% answered at least one correct it includes all three cases-
1st correct 2nd incorrect
1st wrong 2nd correct
1st correct 2nd correct

then what does the last line tell us -" answered both correctly'"?
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Hi Ian,
How did you arrive at the ratio?

I think I'm not understanding what exactly the statements are saying.
If 20% answered at least one correct it includes all three cases-

I think you're misinterpreting Statement 1. It does not tell us that "20% answered at least one correct". It says "20% of the candidates who answered at least one question correctly, answered both questions correctly." So Statement 1 is not talking about all candidates, nor about candidates who answered neither question correctly. It's only telling us that, if you look only at the people who did get at least one question right, 20% of those people got both questions right. And if that's true, the rest of those people, so 80% of those people, got exactly one question right, and the ratio of people with exactly one right answer to people with two right answers must be 80 to 20, or 4 to 1.
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a( 0 correct), b(1 correct), c( 2 correct)

Given a+b+c=120
To find: a=?

S1 : 0.20(b+c)=c Hence b=4c Not sufficient
S2 : 0.25( a+c)=c Hence a=3c Not sufficient

S1 + S2 : c= 15 a= 3c = 45 Sufficient

Thefore C is the answer
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