Good question — and the existing reply gets the right answer, but let me show the full reasoning because the why is important for exam day.
Key Concept: Overlapping Sets in Data Sufficiency — the hidden free variable
Let P(C) = probability of chess, P(S) = probability of swim, P(C∩S) = probability of both.
The formula you need here: P(C∪S) = P(C) + P(S) − P(C∩S)
Statement (1) alone: P(C∪S) = 11/12
This tells us the probability of being in at least one club is 11/12. But we still have two unknowns — P(C) and P(C∩S) — and only one equation. Insufficient.
Statement (2) alone: P(S) = 5/6
This tells us swim class has 40 out of 48 students. We know nothing about chess club size. Insufficient.
Both statements together:
Substituting into the formula:
11/12 = P(C) + 5/6 − P(C∩S)
11/12 − 10/12 = P(C) − P(C∩S)
1/12 = P(C) − P(C∩S)
We have one equation and two unknowns. P(C) and P(C∩S) can take multiple valid values — for example, P(C) = 1/12 and P(C∩S) = 0, or P(C) = 3/12 and P(C∩S) = 2/12 both satisfy this. Still insufficient.
Answer: E
The common trap: The number 48 feels like it should help you pin things down, but it doesn't — the problem never says chess and swim are mutually exclusive. The moment overlap is possible, you're dealing with two unknowns that one equation can't resolve.
Takeaway: In Data Sufficiency Overlapping Sets questions, always write out the full inclusion-exclusion formula before evaluating sufficiency — if you have more unknowns than equations after combining both statements, the answer is E.