GMAT Focus EditionVerbal ReasoningEasy

A company is considering whether to invest in a new automated customer service system. Proponents argue that the system will significantly reduce labor costs and improve response times, leading to greater customer satisfaction. Which of the following is an unstated assumption on which the argument depends?

  1. ACustomers prefer automated systems over human interaction for resolving their issues.
  2. BThe company's competitors are also investing in automated customer service systems.
  3. CThe current customer service system is frequently overwhelmed by customer inquiries.
  4. DThe cost of implementing and maintaining the new automated system will be less than the savings from reduced labor costs.
Show answer & explanation

Correct answer: D. The cost of implementing and maintaining the new automated system will be less than the savings from reduced labor costs.

The argument claims the system will reduce labor costs and improve response times, *leading to greater customer satisfaction*. For the system to be a net benefit (and thus a good investment), the financial savings from reduced labor must outweigh the costs of the new system itself. This is an unstated assumption, as without it, the 'reduced labor costs' might not translate into an overall financial advantage.

Why the other options are wrong

  • A. The argument states it will improve response times and *lead to greater customer satisfaction*, but it doesn't assume customers *prefer* automation, only that the improved response times *through automation* will satisfy them.
  • B. Actions of competitors are not directly assumed by this argument about the *internal benefits* of the system.
  • C. While this might be a reason *why* they need a new system, the argument doesn't explicitly state or depend on the current system being overwhelmed to make its claims about cost reduction and response times.

Unstated Assumption

An unacknowledged premise or belief that must be true for the argument's conclusion to logically follow from its stated premises.

  • It's a missing link in the argument's chain of reasoning.
  • If the assumption is false, the conclusion may not hold.
  • Often relates to the context or underlying conditions.

Memory trick: What hidden 'foundation stone' does this argument stand on?

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