Hi tanvis1120,
This DS question is more of a "concept" question than a "math" question, so you don't really need to do any math to solve it (you just need to understand what the math would be and if you have enough information to do that math).
We're told there are N employees and K will be selected to sit in a row of K chairs. We're asked what the probability would be that Dave would sit next to Bill? Since we don't know the number of employees, nor the number of chairs, there's a big "hole" in the information. We'll need some specifics to answer the question.
Fact 1: K = 20
Now we know that there are 20 chairs, but we have no way of knowing if Dave and Bill will even be selected from the total number of employees. Maybe just one of them will or maybe neither of them will. There's no way to calculate the answer with just this info.
Fact 1 is INSUFFICIENT.
Fact 2: K = N
Now we know that every employee will be selected, but we still don't know what the probability is that Dave and Bill will sit next to each other.
If K = N = 2, then Dave and Bill are the only employees and there's a 100% probability that they sit next to one another.
If K = N = ANYTHING > 2, then Dave and Bill might not sit next to each other, so the probability is less than 100%
Fact 2 is INSUFFICIENT
Combined, we know that there are 20 employees and that they all get seated. From here, you COULD calculate the probability of Dave sitting next to Bill. The good part is that you don't have to do that math to answer this question.
Combined, SUFFICIENT.
Final Answer: C
GMAT assassins aren't born, they're made,
Rich