A statement is given followed by two inferences I and II. You have to consider the statement to be true even if it seems to be at variance from commonly known facts. You have to decide which of the given inferences, if any, follow from the given statement? Statement: Smart signals that operate on traffic rate rather than a fixed timer are to be installed in City A. Inferences: I. The wait time at the traffic signals will significantly reduce. II. Number of accidents in City A will increase. Correct Answer Only inference I follows While the implementation and lucrativeness of the smart signals is under question, we are at liberty to assume that the signals will fulfill the function they are built for. Consequently, inferring that the wait time will decrease is plausible. However, whether or not these signals will malfunction and cause accidents is not something we can decide on with the information provided. Therefore, only inference I can be safely drawn making option 1 the correct answer.