CAT 2007 — DILR Question 9
Answer the following question based on the information given below.
The table below shows the comparative costs, in US Dollars, of major surgeries in USA and a select few Asian countries.
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The equivalent of one US Dollar in the local currencies is given below.
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A consulting firm found that the quality of the health services were not the same in all the countries above. A poor quality of a surgery may have significant repercussions in future, resulting in more cost in correcting mistakes. The cost of poor quality of surgery is given in the table below.
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The rupee value increases to Rs. 35 for a US Dollar, and all other things including quality, remain the same. What is the approximate difference in cost, in US Dollars, between Singapore and India for a Spinal Fusion, taking this change into account?
Answer & solution
- A
700
2500
- C
4500
- D
8000
- E
No difference
Cost of spinal fusion in India = Rs. 5500 × 40.928
Cost with the increased value of Rupee = 5500 × 40.928/35 = 6431 USD
Cost of Spinal Fusion in Singapore = 9000 USD
Required difference = 9000 – 6431 = 2569 USD
Hence, option (b).