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      Question

      In the question below, a passage is given followed by

      three statements which may or may not be inferred from the passage. Select the correct combination of statements that can be logically inferred. Passage: Artificial Intelligence (AI) has significantly improved the efficiency of logistics in the e-commerce sector. By using predictive analytics, companies can now anticipate consumer demand patterns and pre-stock inventory in local warehouses. This shift has reduced delivery times from days to hours in several metropolitan regions. However, this high-speed fulfillment model relies heavily on a dense network of physical distribution centers, which are often expensive to maintain in urban areas with high real estate costs. Statements: I. The primary goal of using AI in e-commerce is to reduce the cost of urban real estate. II. Predictive analytics helps e-commerce companies determine which products are likely to be purchased in specific locations. III. Residents in rural areas are currently experiencing delivery times of under three hours.
      A Only I Correct Answer Incorrect Answer
      B Only II Correct Answer Incorrect Answer
      C Only I and II Correct Answer Incorrect Answer
      D Only II and III Correct Answer Incorrect Answer
      E All I, II, and III Correct Answer Incorrect Answer

      Solution

      Statement I cannot be inferred: The passage states that urban real estate is "expensive to maintain." It does not say that AI's goal is to reduce this cost; in fact, the passage suggests AI's high-speed model relies on these expensive centers. Statement II can be inferred: The passage mentions that AI uses "predictive analytics" to "anticipate consumer demand patterns and pre-stock inventory in local warehouses." This directly implies that the technology identifies what people want to buy so the stock can be moved closer to them. Statement III cannot be inferred: The passage specifically limits the reduction of delivery times (from days to hours) to "several metropolitan regions." It does not provide any information regarding delivery speeds in rural areas.

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