Hallucinating vs daydreaming

[nithya]

Test No. incompl/advan-78 "GMAT Verbal Quiz", question 4

I'm sorry to tell you but she is simply ......... that this will be the result but she has no actual proof.

(a) daydreaming
(b) hallucinating
(c) hypothesizing
(d) dithering

Test No. incompl/advan-78 "GMAT Verbal Quiz", answer 4

I'm sorry to tell you but she is simply hypothesizing that this will be the result but she has no actual proof.

Correct answer: (c) hypothesizing
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Why not hallucinating?

nithya

[Alan]

Hi,

Hallucinating is too strong here as we need to express the idea of supposition. Hallucinating would refer to some kind of medical condition.
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English as a Second Language
You can read my ESL story Everything in the Garden is lovely

[Snoopy_Blah_Blah]

Why not "daydreaming"?
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Everything happens for a reason