Directions: The following table gives the GDP growth rate and Teldensity data of different States of a country in a particular year. Study the table and answer the two items that follow. +----------+-------------------------+------------------------+--------------+ | States | Per Capita income () | GDP growth rate (%) | Tele-density | +----------+-------------------------+------------------------+--------------+ | State 1 | 704 | 9.52 | 70.27 | | State 2 | 419 | 5.31 | 35.88 | | State 3 | 254 | 10.83 | 50.07 | | State 4 | 545 | 9.78 | 5.94 | | State 5 | 891 | 10.8 | 76.12 | | State 6 | 1077 | 11.69 | 77.5 | | State 7 | 900 | 8.88 | 104.86 | | State 8 | 395 | 5.92 | 6 | | State 9 | 720 | 7.76 | 82.25 | | State 10 | 893 | 9.55 | 96.7 | | State 11 | 363 | 4.7 | 57.7 | | State 12 | 966 | 7.85 | 63.8 | | State 13 | 495 | 9.37 | 52.3 | | State 14 | 864 | 5.46 | 97.9 | | State 15 | 497 | 7.48 | 62.3 | | State 16 | 777 | 7.03 | 93.8 | | State 17 | 335 | 5.8 | 49.9 | | State 18 | 599 | 7.49 | 47.84 | +----------+-------------------------+------------------------+--------------+ With reference to the above table, the following assumptions have been made: 1. Nowadays, the prosperity of an already high performing State cannot be sustained without making further large investments in its telecom infrastructure. 2. Nowadays, a very high Tele-density is the most essential condition for promoting business and economic growth in a Stage. Which of the above assumptions is/are valid?

The question asks us to evaluate the validity of two assumptions based on the provided table.

Analysis of Assumption 1: "Nowadays, the prosperity of an already high performing State cannot be sustained without making further large investments in its telecom infrastructure."

1. "High performing State": We can identify high performing states by high Per Capita Income and/or high GDP growth rate. For example, State 6 has the highest Per Capita Income (1077) and the highest GDP growth rate (11.69%). State 5 also shows high performance (891 PC income, 10.8% growth).
2. "Cannot be sustained without making further large investments": The table provides a snapshot of data for a particular year. It shows the current tele-density. It does not provide any information about the sustainability of prosperity over time, nor does it indicate the necessity of future investments. We cannot infer from this data whether current tele-density levels are sufficient for sustainability or if further investments are indispensable. For instance, State 12 has a high Per Capita Income (966) and a decent GDP growth rate (7.85%) with a moderate tele-density (63.8). We cannot conclude that its prosperity cannot be sustained without further large investments based solely on this single year's data. The assumption makes a strong claim about future necessity which is not supported by the given cross-sectional data.

Therefore, Assumption 1 is not valid.

Analysis of Assumption 2: "Nowadays, a very high Tele-density is the most essential condition for promoting business and economic growth in a State."

1. "Most essential condition for promoting business and economic growth": This implies a strong positive correlation and a critical dependency. We should look for states with high economic growth (GDP growth rate) and see if they consistently have very high tele-density.
2. Counter-examples:
   • State 4 has a very high GDP growth rate (9.78%) but an extremely low tele-density (5.94). This directly contradicts the idea that a very high tele-density is the most essential condition for promoting growth.
   • State 3 also shows a very high GDP growth rate (10.83%) with a moderate tele-density (50.07), which is not "very high".
   • While some high-growth states (e.g., State 6, State 5) do have high tele-density, the existence of counter-examples like State 4 and State 3 disproves the claim that it is the most essential condition. Other factors clearly contribute significantly to growth.

Therefore, Assumption 2 is not valid.

Since neither Assumption 1 nor Assumption 2 is valid based on the provided table, the correct option is D.

The final answer is D