Question

Given below are two statements 1 and 2, and two conclusions I and II.

Statement 1: All entrepreneurs are wealthy.

Statement 2: All wealthy are risk seekers.

Conclusion I: All risk seekers are wealthy.

Conclusion II: Only some entrepreneurs are risk seekers.

Based on the above statements and conclusions, which one of the following options is CORRECT?

Options :

  1. Only conclusion I is correct

  2. Only conclusion II is correct

  3. Neither conclusion I nor II is correct

  4. Both conclusions I and II are correct

Show Answer

Answer :

Neither conclusion I nor II is correct

Solution :

The Venn diagram according to the given statements is as follows:

Conclusions :

All risk seekers are wealthy. → False (All wealthy are risk seekers but can't say vice versa is also true)

Only some entrepreneurs are risk seekers → False (All entrepreneurs are wealthy and All wealthy are risk seekers so all entrepreneurs will be risk seekers)

Hence neither conclusion I nor II is correct.

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