# Data Interpretation Capsules - Edwin Jose, CAT DILR 100 Percentiler - Set 3

• DIRECTIONS: Study the following graph and answer the questions that follow. (1) What is the number of Fiat cars sold in 1994 (in ‘000s)?
(A) 750
(B) 500
(C) 1500
(D) can’t say

(2) Which of the following statements is false?
(A) The number of Fiat cars sold registered a decrease from 1995 to 1996.
(B) The number if Fiat cars sold registered an increase from 1996 to 1997.
(C) The number of Ambassador cars sold registered an increase from 1997 to 1998.
(D) None of these.

(3) Which of the following statements is/are true?
(i) The percentage decrease in the number of cars sold by Fiat from 1994 to1998 is 75%
(ii) The number of cars sold by Ford Escort in 1997 and 1998 is same.
(iii) The percentage increase in the number in the number of cars produced by Maruti in 1996, when compared to that of 1995 in more than 100%
(A) i and iii
(B) ii and iii
(C) i and ii
(D) None of these

(4) In which of the following years, did the number of ford Escorts sold register a decrease compared to that in the previous year?
(A) 1998
(B) 1996
(C) 1997
(D) Both 1996 and 1998

(5) The total number of cars sold is maximum in the year
(A) 1995
(B) 1996
(C) 1997
(D) 1998

Solutions:

(1) B
Number of Maruthi cars sold in 1 994 = 40% =1000,000 Number of Fiat cars sold in 1994 >> 20%
= 500,000
(2) D
Fiat in1995 →1125 *(30/40 X 1500)
Fiat in 1996 → 818 *(15/55 X 3000)
Fiat in 1997 → 1167 *(35/45 X 1500)
On observation we can see that all the statements are true.

(3) D
Choice A is false
Number of cars sold by Fiat in 1994 (in thousands)
= 20/100 X 100/40 X 1000
Number of cars sold by Fiat in 1 996 (in thousands)
= 5/100 X 100/70 X 2000
∴ % decrease is close to 71 % Choice (2) is false
Although percentage share is same for the two years,
the total production is different. Choice (3) is false.
The increase in total production is from 1500 to 3000, which is exactly 100%

(4) D
Ford Escort in 1995 → 750
Ford Escort in 1996 → 272.7
Ford Escort in 1997 → 333.3
Ford Escort in 1998 → 285.7

(5) B
Total number of cars sold in
1995 → 1500 x 100/40
1996 → 3000 x 100/55 → Maximum
1997 → 1500 x 100/45
1998 → 2000 x 100/70

Directions: These questions are based on the following data.

50,000 Units of brand X are being sold in the market at a price of Rs.10/- unit. A competitive brand, Y, enter the market. The course of actions available for the company marketing brand X are

• Cut the price of X by 50 %, which would result in an increase in the number of units sold of X by 30 % with a probability of 0.5 and 20% with a probability of 0.5
• Advertise, which would cost Rs.2,00,00, but would result in an increase in the number of units sold of X by 50% with a probability of 0.1, by 20% with a probability of 0.5 and 10% with a probability of 0.4.
• Remain silent, in which case, the probability of losing the market by 40 % is 0.5 and the probability of retaining its market is 0.5

(1) Which is the best course of action to follow?
(A) cut down the prices
(C) remain silent
(D) Cannot be determined

(2) In which of the cases, does the market of X (number of units sold) increase the most?
(A) cut down the prices
(C) Remaining silent
(D) None of these

(3) What is the net loss if course 1 is followed? (Net Loss = Money realised originally – Money realised now)
(A) Rs. 87,500
(B) Rs.1,00,000
(C) Rs.1,87,500
(D) Rs.2,00,000

(4) What is the revenue realised (net of advertising expenses) if Course 2 is followed?
(A) Rs.4,00,000
(B) Rs.3,95,000
(C) Rs.3,12,500
(D) Rs.3,00,000

(5) How much more/less in the net revenue realised by following course 2 than that realised by following course 2 than that realised by following course 3?
(A) Rs. 5,000 less
(B) Rs. 5,000 more
(C) Rs. 50,000
(D) Rs. 50,000 more

Solutions:

Originally money realised by sales = 10 x 50000 = 5,00,000
Money realised from (3)
= 5.00,000 - 0.5 x 0.4 x 5,00,000 = 4,00,000
Money realised from (2)
= 5,00.000 [0.1 x 0.5 + 0.2 x 0.5 + 0.1 x 0.4] - 2,00,000 + 5,00,000 = 3,95,000 Money realised
from (1)
= 0.5 x 50000 [1 + 0.5 x 0.3 + 0.5 x 0.2] = 3,12,500

(1) c
Hence the most profitable option would be to remain silent.
(2) (a
(3) c
Loss = 5,00,000-3,12,500= 1,87.500.
(4) b
As calculated above, it is Rs.3.95,000
(5) a
Net revenue from course 2 = 3.95 lakhs
Net revenue from course 3 = 4.00 lakhs
∴ Rs.5000 less

DIRECTIONS: Refer to the data below and answer the questions that follow.
ABC limited produces a product P for which demand is unlimited and they can sell all they produce. They want to control costs and have three production plans from which to choose. The fixed cost incurred by the company is Rs.1 lac, Rs.1.5 lacs and Rs.1 lac from plan I, II and III respectively. Given below is the graph of marginal cost of production virus number of units produced. It is also give that it can produce P in a batch of 1000 only. (1) If production = 2000, then which of the three is best plan?
(A) Plan 1
(B) Plan 2
(C) Plan 3
(D) Plan 1 or Plan 2

(2) If production = 3000 then which of the three is the best plan?
(A) Plan 1
(B) Plan 2
(C) Plan 3
(D) Plan 1 or Plan 2

(3) If production < 3000 then which of the three is the best plan?
(A) Plan 1
(B) Plan 2
(C) Plan 3
(D) Plan 1 or Plan 2

(4) If production > 4000 then which of the three is the best plan?
(A) Plan 1
(B) Plan 2
(C) Plan 3
(D) Plan 1 or Plan 2

(5) For some reasons, the company cannot choose plan 1, then 2 is best plan if;
(A) Production ≤ 4000
(B) Production < 4000
(C) Production = 3000 or Production = 4000
(D) None of these

Solutions: Now all the questions can be answered.

(1) A
(2) D
(3) A
(4) D
(5) A

1

1

1

1

1

1

1

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