Assumption means something which has been assumed, supposed or something taken for granted.
To deal with questions of assumption, we need to think about what has been thought/or has happened before the statement is said or done.

EXAMPLES
Directions: In each question below is given a statement followed by two assumptions numbered I and II. Consider the statement and decide which of the given assumptions are implicit.
Give answer:
(a) if only assumption I is implicit;
(b) if only assumption II is implicit;
(c) if either I or II is implicit; (d) if neither I nor II is implicit
(e) if both I and II are implicit.

Example. 1:
Statement: Bank ‘A’ has announced reduction of half percentage on the interest rate on retail lending with immediate effect.
Assumptions: I. Other banks may also reduce the retail lending rates to be in competition.
II. Bank ‘A’ may be able to attract more customers for availing retail loans.
Solution: To draw the attention or attraction of customers, reducing interest rate on loans is surely a good step to draw. But the implications of such a policy on other banks cannot be ascertained, as interest rate is not the only criterion to lure customers. So, only II is implicit. Hence, the answer is (b).

Example. 2:
Statement: “Use of cell phones and pagers is not allowed inside the auditorium. Please switch off such devices while you are inside the auditorium.” —— A notice.
Assumptions: I. All those who have such devices will switch them off before they take their seat in the auditorium.
II. Generally people do not bring such devices when they come to attend functions in the auditorium.
Solution: The notice has clearly mentioned the bringing such device can create disturbance in the auditorium. So, I is implicit. Further, such notice has been issued keeping in mind that a lot of people come with such devices to the auditorium. So, II is not implicit. Hence, the answer is (a).

Example. 3:
Statement: Railway officials have started ten new trains and increased the frequency of fourteen running trains.
Assumptions: I. The existing trains are not sufficient to provide accommodation to all passengers.
II. The new and additional trains would have sufficient passengers so that they will be economically viable.
Solution: Clearly, such decisions are always taken keeping in mind the public requirements and their economic viability for the concerned department. So, both I and II are implicit. Hence, the answer is (e).

Example.4:
Statement
You should not drink. You must take care of your health, Ramesh tells his friend Ravi.
Assumptions I. Ravi will need to Ramesh's a advice.
II. Ramesh knows the ill effects of drinking.
III. Drinking is not good for health.
(a) II and III are implicit
(b) None is implicit
(c) All are implicit
(d) I and III are implicit
Solution:- Correct Option:(c)
Anybody advises anyone with the assumption that his advice will get proper attention from the one who hears. Without assumption so, giving advice makes no sense. Hence, Assumption I is implicit. Assumption II is implicit of a thing, then he assumes that he knows about it. Assumption III is very much valid, otherwise the statement becomes meaningless.

Example.5:
Statement
The company has decided to increase the price of all its product to tackle the precarious financial position.
Assumptions I. The company may be able to wipe out the entire losses incurred earlier by the decision.
II. The buyer may continue to buy its product even after the increase.
III. The company has adequate resource to continue production for few more months.
(a) None is implicit
(b) II and III are implicit
(c) I and III are implicit
(d) Only II is implicit
Solution:- Correct Option:(a)
None of the assumptions is implicit in the statement. Assumption I is not implicit because the word 'entire' makes the assumption doubtful. Assumption II is not implicit because neither we know the quality of the product not the market for the product. Assumption III is not implicit because we cannot say anything about the quantity of resources of the company.