IMO C
Statement 1: The length of a diagonal of rectangle PQRS is 55% the length of a diagonal of square ABCD (but the diagonal could be anywhere moreover we need value of length and breadth of rectangle to determine area) (not sufficient)
Statement 2: The length of side PQ is 20% greater than the length of side QR
(But the rectangle can of any length and breadth, need some parameter to draw area with respect to square) (not sufficient)
Statement 1&2:
Let diagonal of square be 100
Therefore side S of square will be
100^2 = S^2+S^2
10000 = 2S^2
5000 = S^2
S= 50√2 and area of square is 5000 ------(1)
The length of rectangle diagonal is 55% of that of square= 100*55/100=55
Also L = 120B/100 -------(2)
55^2=L^2+B^2
3025 = (1.2b)^2+b^2
3025 = 1.44b^2+b^2
3025 = 2.44b^2
B^2 = 1239.75
B= 35.21 and L = 35.21*120/100=42.25
Area of rectangle (shaded region) = L*B = 1487.7 ------(3)
Probability of that point being in shaded region is = 1487.7/5000 = 0.2975 or 0.3 (approx)
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