A private bus company gained greater profits and provided bus service to the area at lower fares by running buses more frequently and stimulating greater ridership. Hoping to continue these financial trends, the company plans to replace all older buses with new, larger buses, including some double-decker buses.
The plan of the bus company as described above assumes all of the following EXCEPT
(A) the demand for bus service in the company’s area of service will increase in the future
(B) increased efficiency and revenues will compensate for any new expenses the company incurs
(C) the new buses will be sufficiently reliable to ensure the company a net financial gain once they are in place
(D) driving the new buses will be no more difficult than driving the buses they are to replace
(E) the larger, double-decker buses will not face obstacles such as height and weight restrictions in the bus company’s area of service
CR1000 T1 #11-Bus Company
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the company's plan to replace the buses with larger buses is based on profitability considerations.
A, B and C affect profitabilty, must be assumed.
E: if the larger buses were to face height/weight restrictions the company would not go ahead with the plan-must be assumed.
D. difficulty in driving does not affect the profitability. does not affect the companys plan=> need not be assumed.
hence, D
A, B and C affect profitabilty, must be assumed.
E: if the larger buses were to face height/weight restrictions the company would not go ahead with the plan-must be assumed.
D. difficulty in driving does not affect the profitability. does not affect the companys plan=> need not be assumed.
hence, D
Last edited by scoobydooby on Mon Apr 27, 2009 7:57 am, edited 1 time in total.
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Yep OA is D. It's quite a close call between D & E. I guess D is a stronger contender. Thanks for the explanation.scoobydooby wrote:the company's plan to replace the buses with larger buses is based on profitability considerations.
A, B and C affect profitabilty, must be assumed.
E: if the larger buses were to face height/weight restrictions the company would not go ahead with the plan-must be assumed.
D. difficulty in driving does not affect the profitability. does not affect the companys plan=> need not be assumed.
hence, D
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