Statement (1) is insufficient. If x^3 is less than x, then x could be between 0 and 1 (in which case x^3 is a smaller fraction than x, as in x = 1/2 and x^3 = 1/8) or x could be less than -1 (for example, x = -2, x^3 = -8).

Statement (2) is also insufficient. Simplify the inequality by dividing both sides by x^2, which results in x < 1.

Taken together, the statements are still insufficient. Statement (2)'s conclusion, that x < 1, does not narrow the possibilities suggested in (1). x could be a positive fraction, in which case the answer is "yes." However, x could be a negative less than -1, in which case the answer is "no." Choice (E) is correct.