I believe if "insufficient data" was stated as a possible answer (which the student's are not accustomed to), they would state that.
Solvable: solution is a range.
All problems become unsolvable if you allow unknowns to creep in: "I have one apple in two hands. How many apples do I have?" is completely unsolvable unless you make assumptions about absolutely everything.
I don't know if it's really a bad thing for students to assume that their teachers are not going to mess with them by giving them an unsolveable problem, doesn't that just indicate that they trust their teacher? In the case of real world problems, there may or not be a specific correct answer, and I think students know that on some level. Maybe a better way to ask that question would be, "Suppose you know that there are 125 sheep and 5 dogs in a flock. Your friend Amelia asks you, 'How old is the shepherd?' What would be your response?" That way the hypothetical nature of the question is more obvious.
http://www.maa.org/external_archive/devlin/LockhartsLament.p...
It's entirely possible to solve a math problem using psychology instead of math, because math problems are made by people. We've all done a horrifying amount of schoolwork, and thus have a pretty good data set in our head from which to extrapolate.
Suppose I tell you that an algebra textbook question includes the numbers 32, 4 and 64 in the problem text. What's the answer? I'd bet most of us would guess 2 or 4.