Introduction to Data Interpretation


Direction: The following graph gives Sales, Expense and Capital of a company for a period of five years 1994 to 1998. Read the graph and answer the following questions.

  1. In which year was the ratio of sales to capital the lowest?









  1. View Hint View Answer Discuss in Forum

    On the basis of given graph in question ,
    Sales in year 1994 = 400
    Capital in year 1994 = 200
    Sales : capital in 1994 → 2 : 1,
    Sales in year 1995 = 500
    Capital in year 1995 = 200
    Sales : capital in 1995 → 5 : 2,
    Sales in year 1996 = 300
    Capital in year 1996 = 200
    Sales : capital in 1996 → 3 : 2,
    Sales in year 1997 = 500
    Capital in year 1997 = 300
    Sales : capital in 1997 → 5 : 3,
    Sales in year 1998 = 800
    Capital in year 1998 = 300
    Sales : capital in 1998 → 8 : 3

    Correct Option: C

    On the basis of given graph in question ,
    Sales in year 1994 = 400
    Capital in year 1994 = 200
    Sales : capital in 1994 → 2 : 1,
    Sales in year 1995 = 500
    Capital in year 1995 = 200
    Sales : capital in 1995 → 5 : 2,
    Sales in year 1996 = 300
    Capital in year 1996 = 200
    Sales : capital in 1996 → 3 : 2,
    Sales in year 1997 = 500
    Capital in year 1997 = 300
    Sales : capital in 1997 → 5 : 3,
    Sales in year 1998 = 800
    Capital in year 1998 = 300
    Sales : capital in 1998 → 8 : 3
    Hence , the ratio of sales to capital is the lowest in year 1996 .


  1. In which year was the ratio of profit to capital the highest?









  1. View Hint View Answer Discuss in Forum

    From the given bar diagram , we see
    Profit in 1994 → 100,
    Profit in 1995 → 100,
    Profit in 1996 → – 100
    Profit in 1997 → – 100,
    Profit in 1998 →100

    Correct Option: B

    From the given bar diagram , we see
    Profit in 1994 → 100,
    Profit in 1995 → 100,
    Profit in 1996 → – 100
    Profit in 1997 → – 100,
    Profit in 1998 →100
    Therefore , the ratio of profit to capital is the highest in year 1995 .


  1. What was the average per annum increase in sales (in $ million) from 1994 to 1998?









  1. View Hint View Answer Discuss in Forum

    According to given bar graph , we have
    Total increase in sales from 1994 to 1998 = 100 - 200 + 200 + 300 = 400
    Number of years = 5

    Required average =
    Total increase in sales from 1994 to 1998
    Number of years

    Correct Option: C

    According to given bar graph , we have
    Total increase in sales from 1994 to 1998 = 100 - 200 + 200 + 300 = 400
    Number of years = 5

    Required average =
    Total increase in sales from 1994 to 1998
    Number of years

    Required average =
    100 - 200 + 200 + 300
    = $ 80 billion
    5


  1. In which year was the Sales to Expense ratio the lowest?









  1. View Hint View Answer Discuss in Forum

    On the basis of given graph in question ,
    The Sales in year 1996 = 300
    The Expense in year 1996 = 400
    Required ratio = The Sales in year 1996 : The Expense in year 1996

    Correct Option: B

    On the basis of given graph in question ,
    The Sales in year 1996 = 300
    The Expense in year 1996 = 400
    Required ratio = The Sales in year 1996 : The Expense in year 1996
    Required ratio = 300 : 400 = 3 : 4
    It was lowest in 1996 as 3 : 4.


  1. What has been the simple average growth rate per annum of expense between 1994 and 1998?









  1. View Hint View Answer Discuss in Forum

    According to given bar graph , we have
    Growth rate per annum of expense for :

    1995 →
    100
    × 100 =
    100
    %
    3003

    1996 → 0%
    1997 →
    200
    × 100 = 50%
    400

    1998 →
    100
    × 100 =
    50
    %
    6003

    Correct Option: A

    According to given bar graph , we have
    Growth rate per annum of expense for :

    1995 →
    100
    × 100 =
    100
    %
    3003

    1996 → 0%
    1997 →
    200
    × 100 = 50%
    400

    1998 →
    100
    × 100 =
    50
    %
    6003

    Required average =
    [ ( 100/300 ) + 50 + ( 50/3 ) + 0 ]
    = 25%
    4