CAT 2008 — DILR Question 25
Answer the following question based on the information given below.
Telecom operators get revenue from transfer of data and voice. Average revenue received from transfer of each unit of data is known as ARDT. In the diagram below, the revenue received from data transfer as percentage of total revenue received and the ARDT in US Dollars (USD) are given for various countries.
It is expected that by 2010, revenue from the data transfer as a percentage of total revenue will triple for India and double for Sweden. Assume that in 2010, the total revenue in India is twice that of Sweden and that the volume of data transfer is the same in both the countries. What is the percentage increase of ARDT in India if there is no change in ARDT in Sweden?
Answer & solution
- A
400%
- B
550%
800%
- D
950%
- E
Cannot be determined
By 2010, Percentage of revenue from transfer of data will triple for India and double for Sweden.
∴ Percentage of revenue from data transfer for India and Sweden will be 27% and 36% respectively.
Let the total revenue in Sweden in 2010 be R.
∴ The total revenue in India in 2010 will be 2R.
It is given that the total volume of data transfer is the same for both the countries.
∴ We can write the following solution for Sweden,
0.36 × R = 6 × Volume ...(i)
Similarly, for India,
0.27 × 2R = ARDT × Volume ...(ii)
Dividing (i) by (ii) we get,
ARDT (for India in 2010) = USD 9
ARDT for India now is USD 1.
∴ The increase of ARDT in India is 800%.
Hence, option (c).