# SBI PO Previous Papers : Reasoning - Conclusions / Inferences (Set 1)

## Reasoning (Conclusions / Inferences) Practice Test from SBI PO Previous Papers

Directions (1-2) : Given below is one passage followed by several possible inferences which can be drawn from the facts stated in the passage. You have to examine each inference separately in the context of the pas-sage and decide upon its degree of truth or falsity. (SBI Associate Banks PO Exam. 14.02.1999)

(1) the inference is 'Definitly True' i.e. it properly follows from the statement of facts given.
(2) the inference is 'Probably True' though not 'Definitely True' in the light of the facts given.
(3) the 'Data are Inadequate' i.e. from the facts given you cannot say whether the inference is likely to be true or false.
(4) the inference is 'Probably False' though not 'Definitely False' in the light of the facts given.
(5) the inference is 'Definitely False' i.e it cannot possibly be drawn from the facts given or it contradicts the given facts.
`Holidays on Instalment Payment (HIP)' plans are being introduced. According to an Indian Market Research Bureau (IMRB) study, at least 12,000 families in Mumbai alone will opt for such deferred payment plans for their holidays in the next three years.

1. In Mumbai Holidays on Instalment Payment (HIP) seems to be fulfilling need of people.

2. Compared to the total number of membership of HIP from Mumbai appears to be a Tip of Ice-berg'.

Directions (3-9) : Below is given a passage followed by several possible inferences which can be drawn from the facts stated in the passage. You have to examine each inference separately in the context of the pas-sage and decide upon its degree of truth or falsity. (SBI Associate Banks PO Exam. 16.07.2000)

(1) if the inference is "definitely true" i.e. it properly follows from the statement of facts given.
(2) if the inference is "probably true" though not "definitely true" in the light of the facts given
(3) if the data are inadequate i.e., from the facts given you cannot say whether the inference is likely to be true or false. Mark answer
(4) if the inference is "probably false" though not "definitely false" in the light of the facts given.
(5) if the inference is "definitely false" i.e., it cannot possibly be drawn from the facts given or it contradicts the facts.

Procurement of wheat is in full swing in the northwestern states of India. By June end, public agencies are likely to end up with foodgrain stocks of about 40 to 42 million tonnes, the highest ever witnessed in the history of this country. This stock should be more than sufficient to en-sure that the country's "food security" is not endangered even if India faces two consecutive drought. But strangely enough, while the granaris overflow, there is still widespread hunger in the country even without a draught. The estimates of poverty are being debated, but broadly one-third of India seems to remain under-fed. And this co-existence of grain surpluses with large scale hunger should make any serious policy maker think and examine the existing policy mix with a view to ensure faster economic growth and reduction in poverty.

3. India's foodgrains stock has been satisfactory over the past few years.

4. India, at present, is one of the countries in the world to have sufficient food for its people.

5. The distribution of foodgrains to the masses has remained a problem area for India.

6. The policy of India needs to be revamped to reduce the extent of poverty in the country.

7. India always maintains foodgrain stocks to withstand two consecutive droughts.

8. More than 30 per cent of population in India do not even get two times meals per day.

9. The policy makers in India are unaware of prevalent hunger.

Directions (10-14) : Below is given a passage followed by several possible inferences which can be drawn from the facts stated in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity. (SBI Banks PO Exam. 20.08.2000)

Mark answer (1) if the inference is 'definitely true' i.e. it properly follows from the statements of facts given.
Mark answer (2) if the inference is 'probably true' though not 'definitely true' in the light of the facts given.
Mark answer (3) if the data are inadequate i.e, from the facts given you cannot say whether the inference is likely to be true or false.
Mark answer (4) if the inference is 'probably false' though not 'definitely false' in the light of the facts given.
Mark answer (5) if the inference is 'definitely false' i.e., it cannot possibly be drawn from the facts given or it contradicts the given facts.

The XYZ Co-operative Milk Marketing Federation of India Limited has targeted a sales turnover of Rs. 10,000 crores by the year 2005. As a part of its projections for the next five years, the federation had envisaged Rs. 100 crore worth of exports per year as against its present exports of Rs. 30 crores per year.

As per the federation's plan, the future network will include 100 offices dealing with about 7500 stockists, who in turn would be covering every taluka headquarters and servicing about 10 lakh odd outlets. Its immediate strategy would be to cater to India's next door neighbours for exports of milk-products.

The main players in this business in the world are India, United States, Europe, New Zealand and Australia, out of which Europe and United States are forced to go for subsidising due to rising labour cost while Australia and New Zealand are far away from India.

10. By 2005, more than 90 per cent of product of XYZ will be used for domestic market.

11. The federation's emphasis appears to be more on exports than on domestic consumption of its products.

12. By 2005, India will be the largest player in the milk industry.

13. India does not have an immediate competitor in exporting milk and its product to neighbouring countries.

14. The XYZ Federation may have to train additional manpower to en-able it to reach all corners of India and its neighbouring countries.

Directions (15-19) : In each question below is given a statement followed by two conclusions numbered I and II. You have to assume everything in the statement to be true, then consider the two conclusions together and decide which of them logically follows beyond a reasonable doubt from the information given in the statement. (SBI Banks PO Exam. 20.08.2000)

Give answer (1) if only conclusion I follows.
Give answer (2) if only conclusion II follows.
Give answer (3) if either I or II follows.
Give answer (4) if neither I nor II follows
Give answer (5) if both I and II follow.

15. Statement : Although we have rating agencies like Crisil, ICRA, there is demand to have a separate rating agency for IT Companies to protect investors.

Conclusions

I. Assessment of financial worth of IT Companies calls for separate set of skills, insight and competencies.

II. Now the investors investing in I.T. Companies will get protection of their investment.

16. Statement : Company "Y" will improve the manufacturing facilities for the production of shaving kits as a result of which capacity would increase and cost would be reduced — A spokesperson of the Company "Y".

Conclusions

I. The products of Company "Y" will complete the market norms in the quality and cost factor.

II. There will be demand of shaving kits of Company "Y"?

17. Statement : During 1997-98 the total loss incurred by the 111 Public Sector Units was to the tune of Rs. 6809 crore which was converted into paid capitals by the Government of its total investment of Rs. 5129 crore.

Conclusions

I. The Government is left with only one option that is to priptise these units.

II. The Government did not take care in the matter of investments in these public sector units.

18. Statement : Population increase coupled with depleting resources is going to be the scenario of many developing countries in days to come.

Conclusions :

I. The population of developing countries will not continue to in-crease in future.

II. It will be very difficult for the governments of developing countries to provide its people decent quality of life.

19. Statement : Mr. X is one of the probable candidates shortlisted for the post of Director of K.L.M. Institute.

Conclusions :

I. Mr. X will be selected as Director of K.L.M. Institute.

II. Mr. X will not be selected as Director of K.L.M. Institute.

Directions (20-24) : Below is given a passage followed by several possible inferences which can be drawn from the facts stated in the passage. You have to examine each inference separately in the context of the pas-sage and decide upon its degree of truth or falsity. (SBI Banks PO Exam. 11.02.2001)

Mark answer (1) if the inference is 'definitely true' i.e., it properly follows from the statement of facts given.
Mark answer (2) if the inference is 'probably true' though not 'definitely true' in the light of the facts given.
Mark answer (3) if the 'data are inadequate' i.e., from the facts given you cannot say whether the inference is likely to be true or false.
Mark answer (4) if the inference is 'probably false' though not 'definitely false' in the light of the facts given and

Mark answer (5) if the inference is 'definitely false' i.e., it cannot possibly be drawn from the facts given or it contradicts the given facts.

Pollution amounts to slow murder. Regular exposure to industrial and vehicular pollution leads to lifethreatening diseases like asthma, heart problems, cancer and various other disorders. Therefore, nobody has the right to pollute, rich or poor. Industrial and vehicular pollution are growing rapidly across the country. It is not just metropolitan centres that are heavily polluted today but also small and medium towns. Pollution is growing faster than the economy. This is because the western technological model, built on heavy use of energy and materials, is an inherently highly toxic model. It produces huge amounts of toxic pollutants, which can be controlled only if there is careful choice of technology and there is considerable discipline in its use.

20. The spread of pollution has gathered momentum in the recent past.

21. The pollution level in the western world is considerably more than in India.

22. Proper planning in use of modern technology leads to less pollution in the environment.

23. The industries which use higher level of energy create more pollution.

24. The smaller industrial units con-tribute proportionately higher pollution.

Directions (25-29) : Below is given a passage followed by several possible inferences which can be drawn from the facts stated in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity. (SBI Bank PO Exam. 18.05.2003)

Mark answer (1) if the inference is 'definitely true', i.e., it properly follows from the statement of facts given.
Mark answer (2) if the inference is 'probably true' though not 'definitely true' in the light of the facts given.
Mark answer (3) if the 'data are inadequate', i.e., from the facts given you cannot say whether the inference is likely to be true or false.

Mark answer (4) if the inference is 'probably false', though not 'definitely false' in the light of the facts given.
Mark answer (5) if the inference is 'definitely false', i.e., it cannot possibly be drawn from the facts given or it contradicts the given facts.

From the beginning of the new year, the good news continues on the economic front. Following on the heels of encouraging GDP growth figures for the second quarter, we now have happy tidings on the trade front as well. November 2002 saw the country's exports record a healthy 16% increase compared to the corresponding period last year. With this, the growth rate in exports for the first eight months of the current fiscal now stands at a robust 16%. Of course part of the reason for this apparently encouraging performance is because of the base effect — exports actually fell 0.8% during 2000-2001. But that is only part of the reason. For the rest, recovery in global trade and to give credit where it is due, concerted efforts by exporters have played no small role.

25. The percentage growth in exports during 2002-2003 was mainly due to the decreased volume of exports during 2001-2002.

26. The efforts put in by the Indian exporters were comparatively less than their counterparts in developed countries.

27. There has been substantial in-crease in the extent of trade all over the world during the last financial year.

28. During 2001-2002, the quantum of country's exports was about three-fourth of that in 2002- 2003.

29. There has been consistent drop in quantum of exports during last three years.

Solutions :
1. (2) The inference is probably true. It is mentioned that after the announcement of Holidays on Instalment Payment (HIP) plans, atleast 12,000 families in Mumbai alone will opt for such deferred payment plans for their holidays in next three years ac-cording to an estimate. Therefore, it may be concluded that the new scheme is fulfilling the need of people in Mumbai. How-ever, it may be that people could go out even if such plans were not announced. Therefore, mark your answer "probably true".
2. (3) The data regarding the total membership of HIP in India are not given in the passage.
3. (1) The statement " while the granaries overflow   grain surpluses " clearly supports the given inference.
4. (1) The statement "This stock should be more than sufficient to ensure that country's "food security" is not endangered ...." clearly supports the given inference.
5. (1) The statement "And this co-existence of grain surpluses with large scale hunger " shows that distribution of foodgrains to the masses is not proper.
6. (1) The last sentence of the pas-sage conveys the same idea.
7. (5) The use of term "always" in the inference makes it contradictory to as what has been stated in the passage.
8. (1) Refer to the sentence " but broadly one-third of India seems to remain underfed."
9. (5) It is erroneous to infer that the policy makers in India are unaware of prevalent hunger. The last sentence of the passage indicates that there is need of adopting a suitable policy.
10. (1) The inference seems to be definitely true. It has been stat-ed that XYZ Federation has envisaged Rs. 100 crore worth of exports per year while the targeted sales turnover has been estimated at Rs. 10,000 crore by the year 2005. Therefore it is clear that more than 90 per cent product of XYZ will be used for domestic market.
11. (2) Considering the first two paragraphs of the passage it seems that the inference is probably true.
12. (1) The last paragraph indicates that by 2005 India will be largest player in milk industry.
13. (1) From the facts given in the passage it is clear that the inference is true.
14. (1) The second paragraph of the passage clearly indicates that more manpower will be required to implement or execute the strategy as envisaged by the XYZ Federation
15. (1) Only conclusion I seems to be reasonable. Considering the different nature of IT Companies different parameters should be employed for ratings. It is not necessary that if separate rating agency is established for IT Comapnies the investors will get protection of their investment. Therefore, conclusion II does not follow.
16. (1) By increasing the manufacturing capacity the Company "Y" would compete reasonably on the cost front. And, as such it can improve the quality of its products. Hence, conclusion I follows. Conclusion II seems to be an assumption.
17. (2) Considering the amount of loss incurred by Public Sector Units it seems to be true that the Government did not take care in the matter of investment in the Public Sector Units. The use of term "only" in the conclusion I makes it invalid.
18. (2) Clearly, only conclusion II fol-lows. It is not clear how the population of developing countries will not increase in the future.
19. (3) It is mentioned in the statement that Mr. X has been declared successful in the preliminary screening for the post of Director of KLM Institute. Therefore, either he will be selected or will not be selected as Director of KLM Institute.
20. (1) The inference seems to be definitely true. Consider the fol-lowing line of the passage : "Industrial and vehicular pollutions are growing rapidly across the country".
21. (3) The passage only deals with the pollution level in the Indian context.
22. (1) It is clear from the last line of the passage that proper planning and discipline in the use of modern technology leads to less pollution.
23. (1) Consider the following lines of the passage. "Pollution is growing faster than economy. This is because the western technological model, built on heavy use of energy and materials, is inherently highly toxic model. It produces huge amounts of toxic pollutants...."
24. (5) From the facts given in the passage it is wrong to assume that the smaller industrial units contribute proportionately high-er pollution.
25. (5) It is clearly mentioned that the decreased volume of exports during 2001-2002 is not the main reason for the percentage growth in exports during 2002-2003.
26. (3) Such comparison is not made in the passage.
27. (1) The inference is definitely true. Refer to the last line of the passage.
28. (4) The inference is probably false. Refer to the passage.
29. (5) The inference is definitely false. Refer to the passage.