- Is this how you would solve it yourself ?
Yes, this is the way I would solve it.
a) Normally we start with S1 and S2 and then apply it to the equations in the question stem
That depends. Here we have a question ("is x<0?"), but we also have some more data in the question stem ("x^n = x^(n+2)"). This is like a kind of 'extra statement' - it's a fact that we need to follow.
b) In this case however, you are doing the opposite -- and taking the information in the question stem first [x can be 0/-1 or 1] and plugging it into S1 and S2 to see if the equations in S1 and S2 even stand ...
No, this isn't accurate. I would describe the strategy used for this problem as "
rephrasing the question". You're thinking 'what is this question really asking?' and narrowing things down before you get to applying the statements. Importantly, you're not 'seeing if S1 and S2 stand' - they are facts and we're seeing if the information they give is
enough to answer the question. However, when we consider Statement 1, we also need to work within the constraints provided by the data at the beginning of the problem: we have to think of cases that agree with both Statement 1, and the fact that x^n = x^(n+2).
Look out for rephrasing / simplifying the question in some OG problems. For example, a question asks "Is xy > 0?". It's really asking "Do x and y have the same signs?".