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?


Before being processed, the applications from individuals in default on their government-guaranteed student loans are not rejected for other reasons.

Applicants in default on their government-guaranteed student loans will not make any loan payments in the future.

In all likelihood, more than 3 percent of the applications actually fail the default test.

Only a small fraction of the individuals in default on their government-guaranteed student loans apply to graduate school.

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.

OA is A