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Illegal Practices

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by sunnyjohn » Sat Jul 09, 2011 8:26 pm
Banks will shortly start to screen all depositors if they are doing illegal practices such as money laundering. Although the new tests are estimated to disqualify up to 5 percent of all prospective depositors, they will still miss two-thirds of depositors doing illegal activities. Therefore, about 10 percent of actual despositors will still desposit money earned via illegal practices.

The argument above depends on which of the following assumptions?

(A) depositors doing illegal practices do not, in a large percentage of cases, fall under other criteria for which reliable screening tests are routinely performed.
(B) depositors doing illegal practices do not, in a large percentage of cases, quit the illegal practices.
(C) The estimate of the number of depositors who would be disqualified by tests for illegal practices is an underestimate.
(D) The number of depositors doing illegal practices is less compare to poplulation at large.
(E) The depositors who do illegal practices will deposit money at the average frequency for all other depositors.
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by dinaroneo » Sun Jul 10, 2011 2:40 am
A:Wrong; Could have been correct, but try negating, conclusion still holds good!
B:Correct;because unless they'll quit illegal pactices, the'll still deposit money earned by such means (try negating and the conclusion falls apart)
C:Wrong; does not fit with the given premise and conclusion
D:Wrong; not relevant given the premise and the conclusion
E:Wrong; not relevant given the premise and the conclusion

IMO B
whats the OA?
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by sunnyjohn » Sun Jul 10, 2011 5:53 am
Hi Sorry.. OA is not B...

I do not want to reveal OA as of now as sometimes people create explanation by looking at the answer.

Thanks to you for trying to decode the problem.
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by Calvin123 » Sun Jul 10, 2011 6:54 am
sunnyjohn wrote:Hi Sorry.. OA is not B...

I do not want to reveal OA as of now as sometimes people create explanation by looking at the answer.

Thanks to you for trying to decode the problem.
Ans must be E

Bank can screen the prospective depositors but can not screen the deposits.
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by sunnyjohn » Sun Jul 10, 2011 7:26 pm
Hi Everyone,

OA is A.

I also choosed E.
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by sandy217 » Mon Jul 11, 2011 12:02 am
Should be A
Because argument says, Banks are likely to miss 66% of illegal cases.
But only 10% of actual depositors are missed. That means each depositor will have other illegal activities, for which the checks are not performed.

Thanks
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