## Introduction to Data Interpretation

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

 1995 → 100 × 100 = 100 % 300 3

1996 → 0%
 1997 → 200 × 100 = 50% 400

 1998 → 100 × 100 = 50 % 600 3

##### Correct Option: A

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

 1995 → 100 × 100 = 100 % 300 3

1996 → 0%
 1997 → 200 × 100 = 50% 400

 1998 → 100 × 100 = 50 % 600 3

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