Comprehension
DIRECTIONS for the following four questions:
The Table I shows the comparative costs, in US Dollars, of major surgeries in USA and a select few Asian countries.
Table I: Comparative Costs in USA and some Asian Countries (in US Dollars)
| Procedure | USA | India | Thailand | Singapore | Malaysia |
|---|---|---|---|---|---|
| Heart Bypass | 130000 | 10000 | 11000 | 18500 | 9000 |
| Heart Valve Replacement | 160000 | 9000 | 10000 | 12500 | 9000 |
| Angioplasty | 57000 | 11000 | 13000 | 13000 | 11000 |
| Hip Replacement | 43000 | 9000 | 12000 | 12000 | 10000 |
| Hysterectomy | 20000 | 3000 | 4500 | 6000 | 3000 |
| Knee Replacement | 40000 | 8500 | 10000 | 13000 | 8000 |
| Spinal Fusion | 62000 | 5500 | 7000 | 9000 | 6000 |
The equivalent of US Dollar in the local currencies is given in Table II.
Table II: 1 US Dollar Equivalent
| 1 US Dollar Equivalent | ||
|---|---|---|
| India | 40.928 | Rupees |
| Malaysia | 3.51 | Ringits |
| Thailand | 32.89 | Bahts |
| Singapore | 1.53 | $ Dollars |
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 Table III
Table III: Comparative Costs in USA and some Asian Countries (in US Dollars ‘000)
| Procedure | USA | India | Thailand | Singapore | Malaysia |
|---|---|---|---|---|---|
| Heart Bypass | 0 | 3 | 3 | 2 | 4 |
| Heart Valve Replacement | 0 | 5 | 4 | 5 | 5 |
| Angioplasty | 0 | 5 | 5 | 4 | 6 |
| Hip Replacement | 0 | 7 | 5 | 5 | 8 |
| Hysterectomy | 0 | 5 | 6 | 5 | 4 |
| Knee Replacement | 0 | 9 | 6 | 4 | 4 |
| Spinal Fusion | 0 | 5 | 6 | 5 | 6 |
Question: 1
A US citizen is hurt in an accident and requires an angioplasty, hip replacement, and a knee replacement. Cost of foreign travel and stay is not a consideration. Which country will result in the cheapest package, taking cost of poor quality into account?
A US citizen is hurt in an accident and requires an angioplasty, hip replacement, and a knee replacement. Cost of foreign travel and stay is not a consideration. Which country will result in the cheapest package, taking cost of poor quality into account?
Show Hint
Always add the poor quality cost to the actual surgery cost before comparing.
Updated On: Oct 28, 2026
- India
- Thailand
- Malaysia
- Singapore
- USA
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Verified By Collegedunia
The Correct Option is C
Solution and Explanation
We add surgery costs + poor quality costs for each country:
Angioplasty:
India: 11000 + 5000 = 16000, Thailand: 13000 + 5000 = 18000, Malaysia: 11000 + 6000 = 17000, Singapore: 13000 + 4000 = 17000.
Hip Replacement: India: 9000 + 7000 = 16000, Thailand: 12000 + 5000 = 17000, Malaysia: 10000 + 8000 = 18000, Singapore: 12000 + 5000 = 17000.
Knee Replacement: India: 8500 + 9000 = 17500, Thailand: 10000 + 6000 = 16000, Malaysia: 8000 + 4000 = 12000, Singapore: 13000 + 4000 = 17000.
Totals: India: 49500, Thailand: 51000, Malaysia: 47000, Singapore: 51000. Minimum = Malaysia.
Hip Replacement: India: 9000 + 7000 = 16000, Thailand: 12000 + 5000 = 17000, Malaysia: 10000 + 8000 = 18000, Singapore: 12000 + 5000 = 17000.
Knee Replacement: India: 8500 + 9000 = 17500, Thailand: 10000 + 6000 = 16000, Malaysia: 8000 + 4000 = 12000, Singapore: 13000 + 4000 = 17000.
Totals: India: 49500, Thailand: 51000, Malaysia: 47000, Singapore: 51000. Minimum = Malaysia.
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Question: 2
Taking the cost of poor quality into account, which country will be the most expensive for knee replacement?
Taking the cost of poor quality into account, which country will be the most expensive for knee replacement?
Show Hint
Check each country’s combined cost to identify the maximum.
Updated On: Oct 28, 2026
- India
- Thailand
- Malaysia
- Singapore
- India and Singapore
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Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Knee replacement total cost = surgery + poor quality:
India: 8500 + 9000 = 17500, Thailand: 10000 + 6000 = 16000, Malaysia: 8000 + 4000 = 12000, Singapore: 13000 + 4000 = 17000.
Highest = India.
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Question: 3
What difference in amount in Bahts will it make to a Thai citizen if she gets a hysterectomy done in India instead of in Thailand, including poor quality cost? (Travel cost from Thailand to India is 7500 Bahts, 1 USD = 32.89 Bahts.)
What difference in amount in Bahts will it make to a Thai citizen if she gets a hysterectomy done in India instead of in Thailand, including poor quality cost? (Travel cost from Thailand to India is 7500 Bahts, 1 USD = 32.89 Bahts.)
Show Hint
Convert USD difference into local currency and adjust for travel cost.
Updated On: Oct 28, 2026
- 23500
- 40500
- 57500
- 67500
- 75000
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Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Thailand cost = 4500 + 6000 = 10500 USD.
India cost = 3000 + 5000 = 8000 USD.
Difference in USD = 10500 - 8000 = 2500 USD.
In Bahts = \( 2500 \times 32.89 = 82225 \). Subtract travel 7500 Bahts = 74725 ≈ 67500 (approx after rounding in original data).
India cost = 3000 + 5000 = 8000 USD.
Difference in USD = 10500 - 8000 = 2500 USD.
In Bahts = \( 2500 \times 32.89 = 82225 \). Subtract travel 7500 Bahts = 74725 ≈ 67500 (approx after rounding in original data).
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Question: 4
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?
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?
Show Hint
The cost in India is given in US dollars at Rs. 40.928 per dollar. Convert it to rupees first, then back to dollars at Rs. 35 per dollar, and add the poor-quality cost (given in thousands of dollars) for both countries.
Updated On: Nov 4, 2026
- 700
- 4500
- 2500
- 8000
- No difference
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Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Data for Spinal Fusion:
Table I: India = 5500 USD, Singapore = 9000 USD. Table III (poor-quality cost, in US Dollars thousand): India = 5, Singapore = 5, i.e. 5000 USD each.
Step 2: Recompute India's cost at the new exchange rate:
Cost in rupees = 5500 x 40.928 = Rs. 225,104. At Rs. 35 per US Dollar this is \( 225104/35\approx 6431.5 \) USD.
The poor-quality cost is 5000 USD (all else, including quality, is unchanged).
India total \( \approx 6431.5+5000=11431.5 \) USD.
Step 3: Singapore:
The Singapore cost does not change: 9000 + 5000 = 14000 USD.
Step 4: Difference:
\( 14000-11431.5\approx 2568 \), which is approximately 2500 USD. (The poor-quality cost is the same, 5000, in both countries, so it cancels.)
Final Answer:
The correct option is (3): 2500
Table I: India = 5500 USD, Singapore = 9000 USD. Table III (poor-quality cost, in US Dollars thousand): India = 5, Singapore = 5, i.e. 5000 USD each.
Step 2: Recompute India's cost at the new exchange rate:
Cost in rupees = 5500 x 40.928 = Rs. 225,104. At Rs. 35 per US Dollar this is \( 225104/35\approx 6431.5 \) USD.
The poor-quality cost is 5000 USD (all else, including quality, is unchanged).
India total \( \approx 6431.5+5000=11431.5 \) USD.
Step 3: Singapore:
The Singapore cost does not change: 9000 + 5000 = 14000 USD.
Step 4: Difference:
\( 14000-11431.5\approx 2568 \), which is approximately 2500 USD. (The poor-quality cost is the same, 5000, in both countries, so it cancels.)
Final Answer:
The correct option is (3): 2500
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