XAT 2012 — QA & DI Question 4
Answer the following question based on the information given below.
The following graphs shows the revenue (in $ million) of three companies in their initial six years of operations, in an economy which is characterized by a persistent inflation.
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The difference in the average percentage increase in revenues, from 4th to 6th year, of Yahoo and Facebook is:
Answer & solution
35%
- B
40%
- C
45%
- D
50%
- E
55%
Revenue of Yahoo in 2006 = 1200
Revenue of Yahoo in 2004 = 250
So, percentage increase = (950/250) × 100 = 380
Average percentage increase = 380/2 = 190
Revenue of Facebook in 2006 = 2000
Revenue of Facebook in 2004 = 350
So, percentage increase = (1650/350) × 100 = 235.71
So, percentage difference in both the values =
[(235.71 – 190)/190] × 100 = 24.05
None of the options are less than 35%,so the question is incorrect.
However, “None of the above” is not one of the given options and hence we will have to take the option closest to 24.05 as the correct answer.
Hence, option (a).