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CAT 1997 — DILR Question 39

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Passage / Data

Additional direction: If the consumer price index for 1970 is to be taken as 105 and the indices for the subsequent years are to be corrected accordingly, then answer 184 and 185.

By roughly how many points do the indices for 1983 and 1975 differ?

Answer & solution

  • 174

  • B

    180

  • C

    188

  • D

    195

Solution

The CPI in 1970 is 43. But it has to be taken as 105. Presently in 1983 and 1975, the CPI is 149 and 78 respectively. Hence, they should actually be taken as (149×10543) = 363.83 and (78×10543) = 190.46 respectively. Hence, their difference = (363.83 – 190.46) = 173.37 = 174 (Approximately).

CAT 1997 DILR Q39: By roughly how many points do the indices for 1983 and 1975 differ? — Solution | TheCATExam