Question

Difficulty: MediumIdentifying Unstated Assumptions

To combat financial losses caused by subterranean pipe ruptures, the Metro Water Authority plans to install acoustic leak sensors along all major underground distribution mains. These sensors automatically alert maintenance crews to micro-vibrations characteristic of escaping water. Authority directors project that this technology will enable rapid repairs, reducing physical water loss by at least 40 percent within two years. Consequently, the directors conclude that implementing the acoustic network will significantly increase the utility's net annual revenue over the next two years. Which of the following is an assumption on which the argument depends?

  1. A
    Acoustic sensor technology is currently the most technologically advanced method available for monitoring subterranean municipal water networks.
  2. The financial cost of purchasing, deploying, and servicing the acoustic sensors will not exceed the monetary value of the water saved through prompt leak repairs.Answer
  3. C
    Undetected subterranean pipe ruptures currently account for the majority of the municipal utility's annual operating deficit.
  4. D
    Installing the acoustic sensor network will completely eliminate all instances of physical water loss across the entire municipal distribution grid.
  5. E
    Reducing physical water loss will prompt municipal regulatory bodies to mandate lower water tariffs for retail consumers.

Answer

The argument assumes that the total financial costs of acquiring, deploying, and maintaining the acoustic sensors will not surpass the financial savings generated by preventing water loss.
The argument leaps from a premise about physical savings (reducing physical water loss by 40%) to a financial conclusion (increasing net annual revenue). For a net revenue increase to materialize, the financial benefits of the saved water must exceed the total capital and operational costs associated with buying, installing, and servicing the acoustic sensors. Negating this statement demonstrates that if costs exceed savings, net revenue cannot increase, proving that this unstated premise is logically necessary.

Step-by-Step Solution

1
Deconstruct the argument structure into premises and conclusion
Premise: Installing acoustic sensors will reduce physical subterranean water loss by at least 40% within two years. Conclusion: Implementing this network will significantly increase the utility's net annual revenue over the next two years.
Identifying the gap between physical water volume reduction and net financial revenue is essential for uncovering unstated assumptions.
2
Identify the logical gap between the premise and conclusion
The author assumes that reducing physical water loss will translate into a net financial gain.
Net revenue accounts for both revenues generated/saved and expenses incurred.
3
Apply the Negation Test to the candidate assumption
Negating the statement gives: 'The financial cost of purchasing, deploying, and servicing the sensors WILL exceed the monetary value of the water saved.'
If expenses exceed savings, net revenue will fall or remain negative, causing the conclusion to fail completely.

Key Concept

Identifying Unstated Assumptions via the Negation Test
Estimated Time:1m 50s
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