Comprehension
The following graphs show the revenue (in $ million) of three companies in their initial six years of operations, in an economy which is characterized by a persistent inflation.
Question: 1
In 2010, which could be a valid statement about the revenues (adjusted for inflation) of these three companies?
In 2010, which could be a valid statement about the revenues (adjusted for inflation) of these three companies?
Show Hint
- When a graph uses “years of operation,” calendar alignment is unknown; avoid drawing cross-firm conclusions tied to a specific calendar year without launch years.
- “Adjusted for inflation” requires an inflation rate; if not given, precise 2010-comparisons are indeterminate.
- “Adjusted for inflation” requires an inflation rate; if not given, precise 2010-comparisons are indeterminate.
Updated On: Dec 9, 2025
- Revenues of all three companies were equal.
- Revenues of all three companies could be equal.
- Revenue of Yahoo was definitely less than Facebook which was definitely less than Google.
- Total of Yahoo and Facebook was definitely higher than that of Google.
- None of the above.
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The Correct Option is
Solution and Explanation
Step 1: The bars show {first six years of operation} (not calendar years). The firms could have started in different years.
Step 2: Revenues are to be viewed in 2010 dollars (adjusted for persistent inflation), but without the firms’ starting years and the exact inflation path, no specific equality/inequality among the three can be concluded or even guaranteed as possible.
Step 3: Hence none of the statements (A)–(D) can be asserted as valid.
\[ \boxed{\text{None of the above}} \]
Step 2: Revenues are to be viewed in 2010 dollars (adjusted for persistent inflation), but without the firms’ starting years and the exact inflation path, no specific equality/inequality among the three can be concluded or even guaranteed as possible.
Step 3: Hence none of the statements (A)–(D) can be asserted as valid.
\[ \boxed{\text{None of the above}} \]
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Question: 2
The difference in the average percentage increase in revenues, from 4th to 6th year, of Yahoo and Facebook is:
The difference in the average percentage increase in revenues, from 4th to 6th year, of Yahoo and Facebook is:
Show Hint
- For “average percentage increase” over consecutive years, average the year-on-year % changes (not the absolute increases).
- Keep fractions to avoid rounding drift; round only at the end.
- Keep fractions to avoid rounding drift; round only at the end.
Updated On: Dec 9, 2025
- 35%
- 40%
- 45%
- 50%
- 55%
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The Correct Option is B
Solution and Explanation
Step 1: Read the values (in \$ million) from the chart.
Yahoo (Y): \(Y_4=250,\; Y_5=600,\; Y_6=1200\).
Facebook (F): \(F_4=300,\; F_5=750,\; F_6=2000\).
Step 2: Compute percentage increases.
Yahoo: \( \frac{600-250}{250}=140%, \frac{1200-600}{600}=100%\).
Average for Yahoo \(=\frac{140%+100%}{2}=120%\).
Facebook: \( \frac{750-300}{300}=150%, \frac{2000-750}{750}=166.\overline{6}%\).
Average for Facebook \(=\frac{150%+166.\overline{6}%}{2}=158.\overline{3}%\).
Step 3: Difference \(=158.\overline{3}%-120%=38.\overline{3}%\approx 40%\).
\[ \boxed{40%} \]
Yahoo (Y): \(Y_4=250,\; Y_5=600,\; Y_6=1200\).
Facebook (F): \(F_4=300,\; F_5=750,\; F_6=2000\).
Step 2: Compute percentage increases.
Yahoo: \( \frac{600-250}{250}=140%, \frac{1200-600}{600}=100%\).
Average for Yahoo \(=\frac{140%+100%}{2}=120%\).
Facebook: \( \frac{750-300}{300}=150%, \frac{2000-750}{750}=166.\overline{6}%\).
Average for Facebook \(=\frac{150%+166.\overline{6}%}{2}=158.\overline{3}%\).
Step 3: Difference \(=158.\overline{3}%-120%=38.\overline{3}%\approx 40%\).
\[ \boxed{40%} \]
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Question: 3
What would have been Facebook’s revenue (in \$ million) in its sixth year of operation if the company had matched Google’s percentage growth in revenues from the fifth to the sixth year? Choose the option that is nearest to the answer.
What would have been Facebook’s revenue (in \$ million) in its sixth year of operation if the company had matched Google’s percentage growth in revenues from the fifth to the sixth year? Choose the option that is nearest to the answer.
Show Hint
- “Match another firm’s percentage growth” \(\Rightarrow\) multiply by \((1+%\text{growth})\).
- When options are spaced widely, rounding to the nearest sensible figure is safe.
- When options are spaced widely, rounding to the nearest sensible figure is safe.
Updated On: Dec 9, 2025
- 1600
- 1700
- 1900
- 2100
- None of the above
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Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Google’s 5th and 6th year revenues are \(G_5=1500,\; G_6=3200\).
Percentage growth \(=\dfrac{3200-1500}{1500}=\dfrac{1700}{1500}=1.133\overline{3}=113.33%\).
Step 2: Apply this growth to Facebook’s 5th year revenue \(F_5=750\).
\[ F_6^{\text{(if matched)}}=750\,(1+1.133\overline{3})=750\times 2.133\overline{3}\approx 1600. \]
Thus the nearest option is \(\boxed{1600}\).
Percentage growth \(=\dfrac{3200-1500}{1500}=\dfrac{1700}{1500}=1.133\overline{3}=113.33%\).
Step 2: Apply this growth to Facebook’s 5th year revenue \(F_5=750\).
\[ F_6^{\text{(if matched)}}=750\,(1+1.133\overline{3})=750\times 2.133\overline{3}\approx 1600. \]
Thus the nearest option is \(\boxed{1600}\).
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