rashel Posted June 8, 2008 Share Posted June 8, 2008 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? 1.Before being processed, the applications from individuals in default on their government-guaranteed student loans are not rejected for other reasons. http://tester.review.com/art/blank.gif2.Applicants in default on their government-guaranteed student loans will not make any loan payments in the future. http://tester.review.com/art/blank.gif3.In all likelihood, more than 3 percent of the applications actually fail the default test. http://tester.review.com/art/blank.gif4.Only a small fraction of the individuals in default on their government-guaranteed student loans apply to graduate school. http://tester.review.com/art/blank.gif5.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. Quote Link to comment Share on other sites More sharing options...
Alok2 Posted June 8, 2008 Share Posted June 8, 2008 I think it is C Quote Link to comment Share on other sites More sharing options...
yogesh_kkk Posted June 8, 2008 Share Posted June 8, 2008 d is the best answer. 1. Before being processed, the applications from individuals in default on their government-guaranteed student loans are not rejected for other reasons. We cannot assume if there are no candidate who are rejected for other reason, no reference of any such reason http://tester.review.com/art/blank.gif2.Applicants in default on their government-guaranteed student loans will not make any loan payments in the future. Graduate School reject the application of the applicant who are default on government-guaranteed student loans only if applicant are detected in default test http://tester.review.com/art/blank.gif3.In all likelihood, more than 3 percent of the applications actually fail the default test. it is thought that the 3 percent of the applications that fail represent only three-quarters of the incoming applications from individuals in default http://tester.review.com/art/blank.gif4.Only a small fraction of the individuals in default on their government-guaranteed student loans apply to graduate school. 3 percent detected and 1 percent undetected these are small number http://tester.review.com/art/blank.gif5.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. no reference of other applicant who did not apply What is the answer? Quote Link to comment Share on other sites More sharing options...
Alok2 Posted June 8, 2008 Share Posted June 8, 2008 Yogesh We are looking for assumptions and 3% or 1% is clearly stated in the argument. So option 'D' is not assumption I think. I have doubt b/w 'A' and 'C' Quote Link to comment Share on other sites More sharing options...
shilpishrestha Posted June 8, 2008 Share Posted June 8, 2008 I will go for A. Quote Link to comment Share on other sites More sharing options...
agarbattis Posted June 9, 2008 Share Posted June 9, 2008 As per the conclusion, the author believes that approximately 1% of the applications that are processed are those of the applicants in default who remain undetected. Premises :- 3% of applicants of who fails this test are only 3/4 of the actual defaulters. - 4% is supposed to be the actual defaulters. Lets for example , if there were 1000 applicants, there would have been 40 defaulters and only 30 applicants were caught by this test. That leaves 10 applicants undetected. For this to be true, we have to assume that these 10 people are not rejected for some other reasons, such as incomplete application form or below the expected score. This is the point mentioned in Option A. Unless we assume this, the conclusion is not valid. So the correct answer is Option A. Whats the OA ? Quote Link to comment Share on other sites More sharing options...
Retake_GMAT Posted June 9, 2008 Share Posted June 9, 2008 IMO A. Agree with agarbattis explanation Quote Link to comment Share on other sites More sharing options...
harkawal Posted June 10, 2008 Share Posted June 10, 2008 My pick is A, explanation already provided by agarbattis. Quote Link to comment Share on other sites More sharing options...
rashel Posted June 10, 2008 Author Share Posted June 10, 2008 OA is A Quote Link to comment Share on other sites More sharing options...
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