CAT 2000 — DILR Question 28
Answer the following question based on the information given below.
The figures below present annual growth rate, expressed as the % change relative to the previous year, in four sectors of the economy of the Republic of Reposia during the 9 year period from 1990 to 1998. Assume that the index of production for each of the four sectors is set at 100 in 1989. Further, the four sectors manufacturing, mining and quarrying, electricity, and chemicals, respectively, constituted 20%. 15%. 10% and 15% of total industrial production in 1989.
The percentage increase of production in the four sectors, namely, manufacturing, mining & quarrying, electricity and chemicals, taken together, in 1994, relative to 1989, is approximately
Answer & solution
25
- B
20
- C
50
- D
40
Let the base is 100 in 1989.
∴ Cumulative contribution of the four sectors in 1989 = 20 + 15 + 10 + 15 = 60
In 1994, the four sectors are
Manufacturing = 100 + 9 − 1 + 3 + 6 + 9 = 126
Mining and quarrying = 100 + 4 + 1 + 1 − 3 + 6 = 109
Chemicals = 100 + 8 + 1 + 2 + 6 + 8 = 125
Electricity = 100 + 8.5 + 9 + 5 + 7.5 + 9 = 139
Note: The actual values are slightly more than what we have calculated above as the growth is multiplied not added. But we can get a closer answer by adding also because the option values are not so close.
Multiplying with the respective weights, we get,
Cumulative weight = (126 × 0.2) + (109 × 0.15) + (139 × 0.10) + (125 × 0.15) = 74.2
∴ Oercentage increase = × 100 ≈ 24%
Hence, option (a).