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rashel

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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?

 

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.

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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?

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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 ?

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