Basics of Data Interpretation: Chapter-1
Basics of Data Interpretation: Chapter-1
Basics of Data Interpretation: Chapter-1
Years
Name of companies
2000 2001 2002 2003 2004
A 374 416 439 588 532
B 400 520 390 610 740
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2. Line Graph
(a) Simple Line Graph
The line graph is one of the simplest ways of expressing the data. There could be one or more lines
depicting different sets of data.
X-axis is usually the category axis and Y-axis is usually the value axis. Therefore, in line graph there
are two axes representing two different variables. It is also known as XY-Chart or -Graph.
Ex. 2: The sale of Company D can be expressed by a line graph as given below:
Annual sale of Company A (in ` million) from 2000 to 2004.
700
588
600
532
500 416
374
400
Sales
439
300
200
100
0
2000 2001 2002 2003 2004
Years
Basics of Data Interpretation 3
(b) Multiple Line Graph
Ex. 3: From the table 1, annual sale of all the five companies A, B, C, D and E from 2000 to 2004
may be expressed by multiple line graph as given below: (Figures in ` million)
900
800
700
600
Sales
500
400
300 Company A Company B
200 Company C Company D
100 Company E
0
2000 2001 2002 2003 2004
Years
3. Bar Graph
(a) Simple Bar Graph
Simple bar graph is probably the most widely used method of diagrammatic representation of data. A bar
chart is a graph that consists of a number of rectangles (called bars) whose length or height varies with
the magnitude represented but all bars are of equal width. The bars may be arranged vertically or
horizontally.
Ex. 4: From the table 1, the annual sale of Company E from the year 2000 to 2004 may be expressed
(Figures in ` million)
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by means of bar graph in the following way:
800 620 720 750 640
530
600
Sales
400
200
0
2000 2001 2002 2003 2004
Years
(b) Multiple Bar Graph
Ex. 5: From the table 1, the annual sale of the companies A, B, C, D and E from year 2000 to 2004
is expressed by means of multiple bar graph: (Figures in ` million).
Company A Company B Company C
840
Company D Company E
900
760
750
740
720
710
690
800
650
640
620
610
588
700
540
532
530
520
510
600
Sales
450
439
420
416
400
390
500
380
374
400
300
200
100
0
2000 2001 2002 2003 2004
Years
Mu ltiple Bar Graph
4 DATA INTERPRETATION
4. Pie-Chart
Pie-Charts (also called Circle-Charts) are used to represent the relative sizes of component in an aggre-
gate. Pie-Chart is a circle broken down into component sectors. Therefore, in pie-chart different data are
represented by sectors. Pie-Chart is generally used on a percentage basis and not on an absolute basis.
Different sectors of a Pie-Chart represent various component parts. Each component value is expressed either
as a percentage of respective total or as the Central Angle of the respective total.
Value of the Sector
Central Angle = 360
Total Value
Central Angle
Value of the Sector = Total Value
360°
[Since the angle at the centre of the circle is 360°, the total magnitude of the various components is taken
to be equal to 360°]
Total magnitude of the various components is equal to 100%. Therefore, 100% 360°
360 18
1% (3.6)°
100 5
Hence, the percentage of the component parts can be converted into degrees by multiplying each of them
by (3.6)°.
Central Angle
Percentage Part of Total Value = 100 %
360°
Percentage Part of Total Value
Central Angle = 360
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100
Let us see the following examples that will illustrate the above points better:
I. Computation of Central Angle when each component value is expressed as a percentage of the
respective total:
The following Pie-Chart shows the winning percentage of Indian Cricket Team in 2011
Pakistan
15%
Australia
30%
India
25%
Others
5%
Cricket Team India Pakistan Australia New Zealand Sri Lanka Others
Winning
25 15 30 15 10 5
Percentage
Basics of Data Interpretation 5
II. Computation of Central Angle when each component value is expressed as a part of the total
value:
The following Pie-Chart shows the expenditure distribution of a certain family (in `)
Total Expenditure = `10000
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` 3000
Food
` 2000
Education
` 1500
Entertainment
Clothing
` 1000
` 1500
Transport
` 1000
The above pie-chart can be represented as given below:
Expenditure
3000 2000 1000 1000 1500 1500
(in ` )
6 DATA INTERPRETATION
III. Computation of percentage component when central angle of the respective total is given:
The following Pie-Chart shows the annual agricultural yield of a village
Maize Others
10° 60° Rice
90°
Wheat
80° Sugar
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120°
A
E 374
530
B
400
D
450 C
380
Ex. 7: From the table 1, the total sale of the companies A, B, C, D and E for the years 2000 to 2004
can be depicted as given below.
2000
2004 2134
3512
2001
2516
2003
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3348
2002
2709
b) Multiple Pie-Chart
Ex. 8: From the table 1, the sale of companies A and B for the years 2000 to 2004 is expressed as
given below. This type of Pie-Chart is used for the purpose of comparison.
2000
2004 2000
15%
23% 16% 2004
27%
2001
2003 2001 20%
24% 18%
2003
2002 23% 2002
19% 15%
Company A Company B
8 DATA INTERPRETATION
How to Read the Given Data
Before we go on to the suggested techniques and Quicker Approach of different types of problems on
Data Interpretation (DI), let us see how to read the given data.
Any Data Interpretation (DI) problem has three parts as given below:
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Part III: Questions Associated with Data
In DI, there are typically three to five questions associated with each of the data. As we shall see later,
these questions could be independent of each other, or might require the use of the raw data (or the outcome)
given (or obtained) in one question to solve the other.
Students are advised to approach the DI questions as per the following algorithm:
Step I: Study the Direction and Headnotes/Footnotes.
Step II: Study the table and graph.
Step III: Attempt the questions one by one.
The above approach provides the student a deeper understanding of various types of data representation
and prepares the students for the variety of questions that can be expected from a data. A careful study of
techniques and tools mentioned in this section will equip the students to attempt all the questions on a
particular data set. Most of the questions in the DI Section usually appear in any one of the following types:
Basics of Data Interpretation 9
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Method III: By Cross-Multiplication
Method IV: By Formulae
This method is suggestive for comparison of those fractional numbers in which numerators and denominators
are not very large.
6 9
Ex. 9: Compare and .
11 17
6 9
Soln: = 0.55 and 0.53
11 17
6 9
11 17
10 DATA INTERPRETATION
83 67
Ex. 10: Compare and .
91 83
83 67
Soln: 0.91 and 0.80
91 83
83 67
91 83
In this case, method I is suggested.
83 67
Clearly, is greater than 0.9 but is less than 0.9.
91 83
338 473
Ex. 11: Compare and .
461 542
Soln: Exact decimal expression of the above fractional number is not possible to get quickly.
338 34
(Two-digit conversion of 338 and 461 is 34 and 46 respectively.)
461 46
473 47
Similarly,
542 54
34 47
is less than 0.8 but is greater than 0.8.
46 54
338 473
461 542
338 473
However, getting the exact decimal expression of the fractional numbers and after
461 542
two-digit conversion will take time.
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b d
a c
b d
a
Cross-multiplication (ad) is corresponding to .
b
c
Cross-multiplication (bc) is corresponding to
d
a c
(i) If ad > bc, then
b d
a c
(ii) If ad < bc, then
b d
13 21
Ex. 12: Compare and .
19 26
Soln: Since (13 × 26 = 338) < (21 × 19 = 399)
13 21
19 26
18 47
Ex. 13: Compare and .
37 58
Soln: By actual cross-multiplication
18 47
37 58
18 × 58 < 47 × 37
18 47
37 58
Basics of Data Interpretation 11
By rough cross-multiplication
18 47
37 58
18 47
18 × 6 < 47 × 3.5
37 58
This method is very helpful. It requires one or two digits conversion of large numbers, because it is not
always possible to find the actual cross-multiplication. Students are advised to learn this method.
576 699
Ex. 14: Compare and .
789 892
Soln:
576 699
789 892
576 699
58 × 9 < 70 × 8
789 892
757 951
Ex. 15: Compare and .
479 563
Soln:
757 951
479 563
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757 951
76 4.8 95 5.6 479 563
Method IV: By Formulae
a ax
Theorem (i): If and are two fractional numbers such that
b bx
(a) a < b
(b) a, b and x are positive integers
a ax
then
b bx
76 89
Ex. 16: Compare and .
89 102
Soln: Difference of numerator and numerator equals to the difference of denominator and denominator.
Also, numerator is less than denominator. So, as per the theorem (i),
76 89 76 13
ie
89 102 89 13
576 687
Ex. 17: Compare and .
783 894
Soln: The difference of numerator and numerator and that of denominator and denominator is equal to
111.
576 687
Therefore,
783 894
a ax
Theorem (ii): If and are two fractional numbers such that
b bx
(a) a > b
(b) a, b and x are positive integers
a ax
then
b bx
12 DATA INTERPRETATION
78 91
Ex. 18: Compare and .
49 62
Soln: Difference of numerator and numerator and difference of denominator and denominator is 13. Also
numerator is greater than denominator.
Therefore, 78 91
49 62
a ax
Theorem (iii): If and are two fractional numbers such that
b b y
(a) a < b
(b) a, b, x and y are positive integers
(c) x y
a ax
then
b by
In other words, the difference of numerator and numerator is greater than or equal to the difference of
denominator and denominator.
373 282
Ex. 19: Compare and .
486 413
Soln: The difference of 373 and 282 is 91 and the difference of 486 and 413 is 73. Since 91 > 73, ie
difference of numerator and numerator is greater than or equal to the difference of denominator
and denominator.
373 282
486 413
a ax
Theorem (iv): If and are two fractional numbers such that
b b y
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Ex. 20: Compare
579
392
and
(a) a > b
(b) a, b, x and y are positive integers.
(c) x y then,
662
483
.
a ax
b by
Soln: Numerator is greater than denominator. The difference of numerator and numerator (662 – 579 =
83) is less than the difference of denominator and denominator (483 – 392 = 91).
579 662
392 483
a ax
Theorem (v): If and are two fractional numbers such that
b b y
(a) a < b
(b) a, b, x and y are positive integers
(c) x < y
then we can’t conclude anything without actual comparison.
a ax
Theorem (vi): If and are two fractional numbers such that
b b y
(a) a > b
(b) a, b, x and y are positive integers
(c) x > y
then we can’t conclude anything, without actual comparison.
It means that any of the following is possible.
a ax a ax a ax
(i) or (ii) or (iii)
b by b by b b y
Basics of Data Interpretation 13
(i) One quantity is what percentage of the other quantity
x
Method: To find x is what per cent of y, we have, required % = 100
y
This type of problem possesses complexities of calculations. To do this problem in the least possible
time you must have a command on multiplication of two-digit numbers with single-digit numbers
Let us see the situation:
Ex. 21: The following table shows the Area of Production, Production and Yield of Wheat
from 2007 to 2011.
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1) 98% 2) 103% 3) 107% 4) 84% 5) None of these
Soln: 2; This problem possesses complexities of calculations.
First we have to find the yield of wheat in 2007 and 2011 and thereafter we have to find that the
yield in 2007 is what percentage of that of 2011.
13.57 136 17
Yield in 2007 = 0.8095 809.5
16.84 168 21
14.90 149
Yield in 2011 = 0.788 788
18.92 189
809 81
Required % = 100 100 102.5%
788 79
Option (2) is the nearest to our answer.
Hence, option (2) is the correct answer.
(ii) One quantity is what per cent more or less than the other quantity
Suppose we have to find x is what percentage more than y. x y
x y
Required % = 100 %
y
Let us see the example given below:
Ex. 22: According to the previous table, average cultivated land under the cultivation of wheat
for the years 2007-09 is what percentage (approx) more than that for 2010?
1) 23% 2) 23.5% 3) 24% 4) 24.5% 5) None of these
Soln: 3; Average cultivated land under the cultivation of wheat for the years 2007-09
16.84 14.56 15.82 47.22
= 15.74
3 3
15.74 12.71 3.03
Required % = 100 100
12.71 12.71
14 DATA INTERPRETATION
Since the given choices are very close, we have to find the value which is the nearest to the
actual value.
303 3030
% % 23.8% ;
12.7 127
ie, 24% is the nearest to 23.8%.
Hence, option (3) is the correct answer.
(iii) In which part per cent increase or decrease is maximum or minimum
This type of question can be solved by the comparison of fractional numbers. Each percentage increase
and decrease has some fractional equivalent. Comparison of percentage increase or decrease means
comparison of fractional numbers.
Let us see the data given below:
Ex. 23: The following line-graph shows the total Information Technology Business of India from
2004-05 to 2008-09.
(Figures are in million US dollars)
7000
6000 6052
5000
5031
4000
3000 3807
2000 2886
2041
1000
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0
2004-05 2005-06 2006-07 2007-08 2008-09
Q. The highest percentage growth in the total IT business in relation to the previous year was
achieved in:
1) 2005-06 2) 2006-07 3) 2007-08 4) 2008-09 5) None of these
Soln: 1; Method I:
2886 2041 845
Percentage growth in 2005-06 = 100 100
2041 2041
845
Its fractional equivalent is .
2041
By proceeding in similar fashion, we get the following chart:
Basics of Data Interpretation 15
As we have to compare the percentage growth and find the year in which percentage growth is the highest,
we have to compare the fractional equivalents only;
ie, we have to compare
845 921 1224 1021
, , and
2041 2886 3807 5031
(See the method of comparison of fractional numbers in the earlier section.)
1224 1021
Obviously,
3807 5031
1021
is eliminated because here numerator is decreasing but denominator is incresing.
5031
Now, see the following:
1224 921
3807 2886
1224 845
Now we have to compare and .
3807 2041
845 1224
2041 3807
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ie,
845
2041
is the greatest fraction.
Percentage growth in 2005-06 is the highest.
Hence, option (1) is the correct answer.
Quicker Method:
2004-05
2041
2005-06
2886
2006-07
3807
2007-08
5031
2008-09
6052
20 84 29 92 38 122 50 102
more than less than less than less than
4 times 4 times 4 times 3 times
Explanation
Write down the given information as above. Convert 2041, 2886, 3807, 5031 into 20, 29, 38 and 50
respectively. Also convert 845, 921, 1224 and 1021 into two- and three-digit numbers as 84, 92, 122 and
102 respectively. Since we have to compare the percentage of
845 921
100, 100, ... and so on. Therefore, we divide 84 by 20, 92 by 29, ... and so on (as shown in
2041 2886
the above diagram).
845
We reach the conclusion that 100 is the highest.
2041
Note:
If we have to find that the year in which the minimum percentage growth in the total IT business is
achieved with respect to the previous year, then it is clear from the Quicker Method that in 2008-09,
there is minimum percentage growth.
Now, let us consider another example.
16 DATA INTERPRETATION
Ex. 24: The following bar graph shows the sale of the Company XYZ from the year 2007 to 2011.
(Figures in million)
800 747
700 628
600 527
500 446
379
400
300
200
100
0
2007 2008 2009 2010 2011
Q. 1: The highest percentage increase in the sale of the Company XYZ in relation to the previous year is
achieved in
1) 2008 2) 2009 3) 2010 4) 2011 5) None of these
Q. 2: The minimum percentage increase in the sale of the Company XYZ is achieved in
1) 2008 2) 2009 3) 2010 4) 2011 5) None of these
Soln: 1; Apply the Quicker Method as mentioned in the previous question. It can also be solved by Method I,
but this method is rather difficult because quantities are very close, indeed.
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From the above diagram it is clear that the percentage increase in the sale of the Company XYZ is the
maximum in the year 2010 (5 less than 2 times corresponds to the greatest percentage increase of type
67
379
100,
81
446
100, .... )
The minimum percentage increase in the sale of the Company XYZ is in the year 2008, because 9 less
than 2 times for the base 38 is less than 9 less than 2 times for the base 45, so their corresponding percent-
age increases.
Now, if we have still any doubt in our mind regarding the above comparison of percentage value, we may
confirm from the actual value.
67 81 101 101
100 17.67%, 100 18.16%, 100 19.16%, 100 19.16%,
379 446 527 527
Note:
Sometimes this method may not work. If we have any doubt then either do it by method I or by actual
calculation, expressing each of the fractional values corresponding to percentage increase as decimal
numbers.
(iv) In which part per cent fluctuation is maximum or minimum
Here we are interested only in the comparison of per cent change. Whether it is percentage increase or
decrease it does not matter.
The method described in (iii) is also applicable here.
Ex. 25: The following table shows the population of a town X in census 1921, 1931, 1941, 1951,
1961 and 1971 (figures in ’000).
27 34 28 31 35
ie , , , ,
276 303 269 297 328
All percentage fluctuations except for the census 1921 to 1931 are more than 10.
Hence the minimum percentage fluctuation is achieved in the census 1931 with respect to the
previous census.
Hence, option (1) is the correct answer.
Aliternative Method:
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(v) To find the overall percentage increase or decrease
1 1 1
If x part is increased or decreased by r1 % , x part is increased or decreased by r2 % , x part is
1 2 3
1
increased or decreased by r3 % , .... x part is increased or decreased by rn % , then overall percent-
n
1 1 1 1
age increase or decrease = x r1 x r2 x r3 .... x rn
1 2 3 n
Note:
‘+’ve sign is used for percentage increase.
‘–’ve sign is used for percentage decrease.
If the ove rall value is (+ve ) the n the re is ove rall pe rce ntage incre ase , otherwise overall
percentage decrease.
Ex. 26: The following pie-chart shows the percentage share of expenditure of Company X in its
four units: Unit I, Unit II, Unit III and Unit IV.
IV
I
30%
35%
III II
15% 20%
18 DATA INTERPRETATION
The following bar graph shows the percentage profit or loss earned by a company in its four units.
70
60
Value in per cent 50
40
30
20
10
0
-10
-20
-30
-40
Unit I Unit II Unit III Unit IV
Q. Find the overall percentage profit earned by a company in all its four units.
1) 22.5% 2) 30% 3) 27.5% 4) 29.5% 5) None of these
Soln: 3; We calculate the profit on expenditure.
Therefore, first of all find the ratio of expenditure invested in the four units: units I, II, III
and IV.
Required ratio = 35 : 20 : 15 : 30 = 7 : 4 : 3 : 6
Sum total of ratios = 7 + 4 + 3 + 6 = 20
7 4 3 6
ie part is invested in Unit I, part is in Unit II, part is in Unit III, and part is in
20 20 20 20
Unit IV.
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7 4 3 6
Overall percentage profit = 20 40 20 30 20 60 20 45 14 6 9 13.5 27.5%
[Since per cent earned by Unit I is 40, per cent loss incurred by Unit II is 30, and per cent profits
earned by units III and IV are 60 and 45 respectively, from the given Bar Graph]
Ex. 27: In a district, there are three Sub-Divisions X, Y and Z. The ratio of the populations in 1991
was 5 : 7 : 4 respectively. The percentage increase in the population of Sub-Divisions X, Y
and Z from 1991 to 2001 is 24%, 32% and 12% respectively. Then the percentage increase
in the population of the whole district from 1991 to 2001 is
1) 19% 2) 27% 3) 24.5% 4) 21.5% 5) None of these
Soln: 3; According to the formula mentioned above, we have
5 7 4
overall percentage increase = 24 32 12 7.5 14 3 24.5%
16 16 16
1
Income of the company in 2009 = (Income of the company in 2010) × MF
7
= 512 = ` 448 million
8
The following are some of the multiplying fractions (MF) for percentage increase and decrease corre-
sponding to the given percentage. (This may be treated as ready reference or for the sake of practice of
identifying multiplying fraction for percentage increase or decrease.)
Percentage MF (Increase) MF (Decrease)
r 100 + r r 100 r
r% 1 + or 1 or
100 100 100 100
51 49
2%
50 50
1 31 29
3 %
3 30 30
26 24
4%
25 25
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30 28
3.45%
29 29
24 22
4.35% 23 23
1 25 23
4 %
6 24 24
21 19
5%
20 20
18 16
5.88%
17 17
1 17 15
6 %
4 16 16
1 15 13
7 %
7 14 14
1 13 11
8 %
3 12 12
14 12
7.69%
13 13
1 12 10
9 %
11 11 11
11 9
10%
10 10
20 DATA INTERPRETATION
1 10 8
11 %
9 9 9
1 9 7
12 %
2 8 8
1 17 13
13 %
3 15 15
2 8 6
14 %
7 7 7
23 17
15%
20 20
2 7 5
16 %
3 6 6
1 41 29
17 %
7 35 35
3 19 13
18 %
4 16 16
4 43 29
19 %
9 36 36
6 4
20% 5 5
1 49 31
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22 %
2 40 40
5 3
25%
4 4
13 7
30% 10 10
1 4 2
33 %
3 3 3
27 13
35%
20 20
7 3
40% 5 5
3 1
50% 2 2
8 2
60% 5 5
2 5 1
66 %
3 3 3
.... and so on.
Basics of Data Interpretation 21
Ex. 29: The following line-graph shows the percentage increase/decrease in the sale of the com-
panies A and B in the years 1999-2004 with respect to the previous year.
40
Company A Company B
33 1/3
30
20
Value in per cent
14 2/7 13 1/3
12½
15 15
10
8 1/3
5
0
-7 1/7 -6.25
-10
-20 -18¾
-30
1999 2000 2001 2002 2003 2004
Years
Q. 1: If the ratio of sale of the companies A and B in the year 2004 is 3 : 5, what was the ratio of
sale of the companies A and B in the year 2003?
Soln: Let the sale of the companies A and B be 3K and 5K in 2004.
20 20 23
Sale of the company B in 2003 = 5K × 23 23 is reciprocal of 20 , ie MF for 15% increase
100K
=
23
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12 36K
Sale of the company A in 2003 = 3K
13 13
12 13 1
is reciprocal of , ie MF for 8 % increase
13 12 3
Sale of company A in 2003 36K 23 828 207
Required ratio = Sale of company B in 2003 13 100K 1300 325 207 : 325.
Q. 2: If the companies A and B have equal sales at the end of the year 2001, find that the sale
of the company A is what percentage more/less than that of B in year 1998?
Soln: Let the sale of the companies A and B at the end of the year 2001 be K.
Companies A and B have three successive increases/decreases in the sale, viz 1998 to 1999,
1999 to 2000, 2000 to 2001. First of all, we have to find the overall multiplying fractions for each
of the companies A and B for three successive increases/decreases.
8 9 13
Overall multiplying fraction of company A =
7 8 14
8 2 9 1 13 1
for 14 % increase, for 12 % increase and for 7 % decrease
7 7 8 2 14 7
117
=
98
13 21 23 6279
Similarly, overall multiplying fraction of the company B =
16 20 20 6400
13 3 21 23
for 18 % decrease, for 5% increase and for 15% increase
16 4 20 20
Sale of the company A in 1998
Sale of the company at Reciprocal of overall multiplying
=
the end of the year 2001 fraction of the company A
98 98K
K 0.84K
117 117
22 DATA INTERPRETATION
6400 6400K
Similarly, sale of company B in 1998 = K × = 1.02K
6279 6279
Sale of company A in 1998 is less than that of B.
r1
Where MF1 = 1
100
r2
MF2 = 1
100
r3
MF3 = 1 100
... ... ...
... ... ...
r
MFn 1 n
100
Overall Multiplying Fraction = MF1 MF2 MF3 .... MFn .
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1
Ex. 30: If the population of a state in census 1961-1971 is increased by 22 % and percentage
2
3
increase in population in census 1971-81 is 18 % , then the population in the year 1981
4
is increased by ______% with respect to 1961.
Soln: Method I:
49 1
MF1 (MF for 22 % increase)
40 2
19 3
MF2 (MF for 18 % increase)
16 4
49 19 931
Overall MF = MF1 MF2 =
40 16 640
291
r 100 45.47
640
Population of the state in 1981 is increased by 45.47% with respect to 1961.
Method II:
If there is a successive increase/decrease at r1 % and r2 % , then overall per cent increase/
r1r2
decrease is given by r1 r2 % .
100
Note: Use (+ve) sign for increase and (–ve) sign for decrease
Sign is effective in the product also.
Basics of Data Interpretation 23
1 3 45 75 1
Overall % increase of population in 1981 with respect to 1961 = 22 18
2 4 2 4 100
640
Population of the state in 1961 = 18.62 × 931 12.80 million
Clearly, Method II is complicated. Students are advised to use the technique mentioned in
Method I.
Income-Expenditure Related Problems
Some of the Data Interpretation questions involve expenditure, income, per cent profit, per cent loss etc.
However, relation between expenditure, income and per cent profit is usually mentioned in headnotes as given
below:
Income Expenditure
Per cent profit = 100
Expenditure
Earlier, when the above relationship is not mentioned, there has been a lot of controversy regarding what
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should be the denominator — income or expenditure — while calculating the profit percentage. Even experts
differ on the issue. But after going through various exams questions, we have come to the conclusion that
examiners have the above formula in mind. Hence, readers are advised to follow the above formula when the
above formula is not mentioned in the question.
From the above formula we can conclude that the ‘Expenditure’ is the ‘Cost Price’ (The amount paid to
purchase an article) and ‘Income’ is the ‘Selling Price’ (The price at which an article is sold.) Because when
we purchase something, we pay or expend some amount so we can consider the ‘Cost Price’ as ‘Expendi-
ture’. The same logic can be applied with ‘Selling Price’ and ‘Income’.
Therefore, we calculate profit and loss on expenditure. If expenditure is less than income, there is a profit.
If the expenditure is more than income, there is a loss. To solve these types of problems in the least possible
time, we have to go through the formula that is different from the formula mentioned in the headnotes.
Here, we are going to discuss two methods. Both follow the same logic. It is upto you which method you
should apply to solve such questions.
Method I:
In this method, Expenditure is treated as IQ (Initial Quantity) and Income is treated as FQ (Final Quantity)
Multiplying Fraction (MF) is associated with per cent profit or loss.
If there is a profit of r% on Expenditure ‘E’ and Income ‘I’, then
r
(i) I = E × MF; where MF = 1
100
1
(ii) E = I
MF
(iii) Profit = E + % Profit
I 1
(iv) Profit = I – E = I –[Since, I = E × MF] = I 1
MF MF
Now, let us consider the example given below that will further illustrate our points:
24 DATA INTERPRETATION
Ex. 31: The following bar graph shows the percentage profit of the companies A and B during
2000-04.
70
60
60 Company A Company B 50
Value in per cent
50
40
40 35
30 30
30 25 25
20
20 15
10
0
2000 2001 2002 2003 2004
Q. 1: The income of Company B in 2002 is ` 1080 million. Find the expenditure of Company B in
2002.
Soln: As we know,
1 20
Expenditure = Income × = 1080 800 million
MF 27
20 27 35 135 27
is reciprocal of , MF = 1+ = = for 35% profit
27 20 100 100 20
Q. 2: If the income of Company B is 20% more than the income of Company A in 2003, find the
ratio of the expenditure of Company A to that of Company B in 2003.
Soln: Let the income of Company A = K
K KUNDAN
120 6K
income of Company B = K × 100 5
5 5K 5 7
Expenditure of Company A = K × is reciprocal of , ie MF for 40% increase
7 7 7 5
6K 4 24K
Similarly, expenditure of Company B =
5 5 25
4 5
is recprocal of , ie MF for 25% increase
5 4
5K
7 125
required ratio = 24K 168 = 125 : 168.
25
Method II:
In this method, Expenditure is considered as Cost Price and Income is considered as Selling Price. Now, by
using the rule of fraction, we have following formulae (formulae are given for the % profit):
100 % Profit
(i) Selling Price (or Income) = Cost Price (or Expenditure) ×
100
To make profit Income should be more than the Expenditure. Hence our multiplying fraction is
100 % Profit
more than one ie .
100
100
Cost Price (or Expenditure) = Selling Price (or Income) ×
100 % Pr ofit
To make Profit, Expenditure should be less than Income. Therefore our Multiplying Fraction (MF)
100
is less than one, ie .
100 % Pr ofit
Let us consider the example given below that will illustrate our points:
Basics of Data Interpretation 25
Ex. 32: Study the following graph carefully and answer the questions given below:
Per cent net profit of two companies over the years
Profit = Income – Expenditure
Income – Expenditure
Per cent Profit = 100
Expenditure
Q. 1: If the total income in 1992 for Company B was ` 140 crores, what was the total expenditure in
that year?
1) ` 100 cr 2) ` 110 cr 3) ` 98 cr 4) Data inadequate 5) None of these
Soln: Total income of Company B in 1992 = ` 140 crores
Per cent profit for Company B in 1992 = 45%
K KUNDAN
100
Total Expenditure = Income
100 % Profit
200 140
= ` 280 crores
100
Detail Method for Income – Expenditure Based Questions Using Rule of Fraction
In this method, we change the supplied value into required value by using the concept of Rule of
Fraction.
To solve the question based on Income – Expenditure, we use the concept of Rule of Fraction. Therefore,
we firstly try to understand what the ‘Rule of Fraction’ is. You must have read this in the ‘Profit and Loss’
chapter in Arithmetic section.
26 DATA INTERPRETATION
Rule of Fraction:
(i) If our required value is greater than the supplied value we should multiply the supplied value with
a fraction which is more-than-one.
(ii) If our required value is lesser than the supplied value we should multiply the supplied value with a
fraction which is less-than-one.
Generally, a formula is given in the question as given below:
Income Expenditure
Per cent Profit = 100
Expenditure
Selling Price - Cost Price
= 100
Cost Price
In Profit and Loss chapter, we have learnt that the per cent profit is calculated on the base of Cost
Price. Similarly, here, profit has been calculated on the base of Expenditure and this is in 100. Therefore,
Expenditure will always be 100 irrespective of the value of the per cent profit. It is to be noted that the
Profit is the part of the Income. Profit cannot be equal to the Income. It is always less than the
Income.
From the above discussion we can see that we have three elements viz. Expenditure, Income and
Profit. Now, we construct a table to change the supplied value into the required value as given
below:
100 100 + P P
K KUNDAN
(i) Expenditure:
From the table it is clear that the Expenditure will be less than the Income, therefore, the
Multiplying Fraction will be less-than-one. Here Income (100 + P) and Expenditure (100) are
involved, hence calculating figures will be (100 + P) and (100)
100
Expenditure = Income ×
100 P
(ii) Profit:
It is clear from the table that the Multiplying Fraction will be less-than-one. Here calculating
figures are Income (100 + P) and Per cent Profit (P).
P
Profit = Income ×
100 P
Basics of Data Interpretation 27
Case-II : Whe n the value of Ex penditure (supplied value) is give n, then we can find the
Income (required value) as given below:
Clearly, here Multiplying Fraction will be more-than-one and the calculating figures are
Expenditure (100) and Income (100 + P).
100 P
Income = Expenditure ×
100
Case-III: When the value of Profit (supplied value) is given, then we can find the Income (required
value) as given below:
Clearly, here Multiplying Fraction will be more-than-one and the calculating figures are
Income (100 + P) and Per cent Profit (P).
K KUNDAN
100 P
Income = Profit ×
100
Note: No definite relationship between Expenditure and Per cent Profit can be established. There
can be two cases, either
(i) Expenditure > Per cent Profit or (ii) Expenditure < Per cent Profit
(a) If Expenditure is given Profit can be directly calculated by using unitary method as
given below:
P
Profit = Expenditure ×
100
(b) If Profit is given Expenditure can be directly calculatd by using unitary method as given
below:
100
Expenditure = Profit ×
P
45 Company A Company B
40 40 40
35
Per cent profit
30
30
25
25 25
20 20
15 20
10 10
10 10
5
5
0
2001 2002 2003 2004 2005 2006
Years
Q. 1: Income of Company A in 2002 is ` 60 crores.
(i) What is the Expenditure of Company A in 2002?
(ii) What is the Profit of Company A in 2002?
(iii) What is the Expenditure of Company A in 2003?
(iv) What is the Expenditure of Company B in 2002?
Soln: (i) Per cent Profit of Company A in 2002 = 20%
K KUNDAN Clearly, Expenditure will be less than the Income. Therefore, Multiplying Fraction will be
less-than-one and the calculating figures are Expenditure (100) and Income (100 + 20).
100
Expenditure of Company A in 2002 = ` 60 crores = ` 50 crores
100 20
(ii)
Clearly, the Profit will be less than Income. Therefore, Multiplying Fraction will be less-than-
one and the calculating figures are Income (100 + 20) and Per cent Profit (20).
20
Profit of Company A in 2002 = ` 60 crores = ` 10 crores
100 20
(iii) Cannot be determined, because here change of year has been given.
(iv) Cannot be determined, because company cannot be changed.
Q. 2: Income of Company A in 2003 is equal to the Income of Company B in 2004 and Expenditure
of Company B in 2004 is ` 44 crores.
(i) What is the Expenditure of Company A in the year 2003?
Basics of Data Interpretation 29
(ii) What is the Profit of Company A in the year 2003?
Soln: Here, year and company both have been changed, therefore, the supplied value cannot be changed
directly to get the required value. It can be changed in the following ways:
(i) Per cent Profit of Company B in the year 2004 = 25%
Clearly, Income is greater than the Expenditure, therefore, the multiplying fraction will be
more-than-one.
100 25 125
Income of Company B in 2004 = ` 44 crores = ` 44 crores
100 100
Again, from the question, the above value is equal to the Income of Company A in the
year 2003.
Per cent profit of Company A in the year 2003 = 10%
K KUNDAN
Clearly, Expenditure is less than the Income, therefore, the Multiplying Fraction will be
less-than-one.
125 100
Expenditure of Company A in 2003 = ` 44 crores = ` 50 crores
100 110
(ii)
125
Income of Company B in 2004 = ` 44 crores = Income of Company A in 2003
100
Again,
125 10
Profit of Company A in 2003 = ` 44 crores = ` 5 crores
100 110
30 DATA INTERPRETATION
Q. 3: Ratio of Income of Company A in 2003 to the Income of Company B in 2004 is 3 : 4 and
Expenditure of Company B in 2004 is ` 44 crores.
(i) What is the Expenditure of Company A in 2003?
(ii) What is the Profit of Company A in 2003?
Soln: This question is similar to the Q.No. 2. In the previous question, the Income of Company A in 2003
is equal to the income of Company B in 2004. That is, the ratio is 1 : 1.
Here, value is reducing
125 3 100 1
(i) Expenditure of Company A in 2003 = ` 44 crores = ` 37 crores
100 4 110 2
125 3 10 3
(ii) Profit of Company A in 2003 = ` 44 crores = ` 3 crores
100 4 110 4
Note: Here, the relationship in ratio has been given. It can be per cent, fraction or decimal.
Calculation can be easier in ratio.
3
4 75% 0.75 etc
Q. 4: Expenditure of Company A in 2005 is ` 40 crores and Income of Company B in 2006 is
` 56 crores. Profit of Company B in 2006 is what per cent more than the profit of Company A
in 2005?
Soln: Expenditure of Company A in 2005 = ` 40 crores
Per cent profit of Company A in 2005 = 10%
10
Profit of Company A in 2005 = ` 40 crores
100
K KUNDAN
Similarly,
40
Profit of Company B in 2006 = ` 56 crores
140
40 10
56 40
140 100 16 4
Required % = 100 = 100 = 300%
10 4
40
100
Q. 5: Sum of the Expenditure of Company A and Company B in 2002 is ` 50 crores. What is the sum
of incomes of companies A and B in 2002?
Soln: Let the Expenditure of companies A and B in 2002 be x and y.
x + y = ` 50 crores
Per cent profit of the companies A and B in 2002 = 20%
Here, per cent profit for both the companies is same.
120 120
Sum of incomes of companies A and B in 2002 = x + y
100 100
120 120
= (x + y) = ` 50 crores = ` 60 crores
100 100
Note: Here Multiplying Fraction is common.
Basics of Data Interpretation 31
Q. 6: Sum of Income of Company A in 2003 and Income of Company B in 2004 is ` 50 crores. Find
the sum of Expenditure of Company A in 2003 and the Expenditure of Company B in 2004.
Soln: Per cent profit of Company A in 2003 = 10%
Per cent profit of Company B in 2004 = 25%
Here per cent profit is not the same, therefore, Multiplying Fraction is not common. Here,
‘Cannot be determined’ is the correct answer.
Note: When some conditions are given, then it can be determined. See the following:
(a) If the ratio of Income of Company A in 2003 to the Income of Company B in 2004 is given as
2 : 3, then find the sum of expenditures of Company A in 2003 and company B in 2004.
Soln: In A03 : In B04 = 2 : 3
50
Income of Company A in 2003 = ` 2 crores = ` 20 crores
23
50
Income of Company B in 2004 = ` 3 crores = ` 30 crores
23
Sum of expenditures of Company A in 2003 and Company B in 2004
100 100
= ` 20 30 crores
100 10 100 25
100 100
= ` 20 30 crores
110 125
(b) If the ratio of Expenditure of Company A in 2003 to the Expenditure of Company B in 2004 is
1 : 2. Then, find the sum of expenditures of company A in 2003 and company B in 2004.
Soln: Ex A03 : Ex B04 = 1 : 2
Let the Ex A03 and Ex B04 be x and 2x respectively.
We have to find (x + 2x =) 3x
K KUNDAN
110 125
In A03 + In B04 = x + 2x
100 100
Now, according to the question,
110 125
x + 2x = ` 50 crores
100 100
x (1.1) + 2x (1.25) = ` 50 crores
3.6x = ` 50 crores
50
x=` crores
3.6
50 3
3x = ` crores = ` 41.67 crores
3.6
Q. 7: Income of company A in 2004 is equal to the Expenditure of Company B in 2006.
(i) What is the ratio of Expenditure of Company A in 2004 to the Income of Company B
in 2006?
(ii) What is the ratio of profit of Company A in 2004 to the profit of Company B in 2006?
Soln: Since In A04 = Ex B06, we take any equal value. Suppose we take x.
(i) Now,
Per cent profit of Company A in 2004 = 5%
32 DATA INTERPRETATION
100 100
Expenditure of Company A in 2004 = x = x
100 5 105
Similarly,
Per cent profit of Company B in 2006 = 40%
100 40 140
Income of Company B in 2006 = x = x
100 100
100 140
Required ratio = x : x
105 100
100 140
= : = 100 : 147
105 100
5 5
(ii) Profit of Company A in 2004 = x = x
100 5 105
40
Profit of Company B in 2006 = x
100
K KUNDAN
5 40
Required ratio = x : x
105 100
5 40
= : = 5 : 42
105 100
Q. 8: Ratio of Income of Company A in 2004 to the Expenditure of Company B in 2006 is 3 : 5. What
is the ratio of Expenditure of Company A in 2004 to the Income of Company B in 2006?
Soln: We solve this question as the previous question.
Here, we put the value of ratios directly instead of x
100 140
Required ratio = 3 : 5
105 100
20
= : 7 = 20 : 49
7
Q. 9: In which year Profit of the Company A was the maximum?
Soln: In the graph, only per cent profit has been given. From percentage value we cannot find the abso-
lute amount of profit.
Q. 10:In which year Income of Company A was minimum?
Soln: It also cannot be determined as per cent value of profit has been given
Q. 11:In which year the ratio of Expenditure to the Income for Company A is the lowest?
Soln: We solve such kind of questions by an example as given below:
% Profit Expenditure : Income
10% 100 : 110
20% 100 : 120
Here, we take arbitrary values of per cent profit irrespective of the values given in the graph. We
100 100
know that .
120 110
Basics of Data Interpretation 33
Clearly, there is higher percentage for lower ratio. Therefore, the highest percentage for the lowest
ratio. From the graph, the highest percentage for Company A is 30%. Hence, it is the required
answer.
Q. 12:In which year ratio of profit to income for the Company A is the highest?
Soln: This can also be solved by Example Method.
% Profit Profit : Income
10% 10 : 110
20% 20 : 120
10 20
Clearly, . Therefore, for higher percentage value the ratio is the higher. Similarly, for the
110 120
highest percentage value the ratio is the highest. From the graph, the highest percentage value for
Company A is 30%. Hence, it is the required answer.
Average = AM +
di where, di = Summation of deviations;
K KUNDAN
n
AM = Assumed Mean;
n = Number of quantities.
For example, suppose we have to find the average weight of 6 persons having weights 73 kg, 91 kg, 87
kg, 68 kg, 86 kg and 93 kg.
From the deviation method:
Let AM = 80
Deviations from each of the weights are 73 - 80, 91 - 80, 87 - 80, 68 - 80, 86 - 80 and 93 - 80,
ie –7, 11, 7, –12, 6 and 13.
Average = AM +
di 80
7 11 7 12 6 13
= 80
18
83 kg
n 6 6
f 1m1 f 2m 2 ... f km k
average or mean of all the numbers = f1 f 2 ... f k
Let us see the example given below:
Out of 100 numbers, 20 were 4’s, 40 were 5’s, 30 were 6’s and the remaining were 7’s. Find the
arithmetic mean of the numbers.
20 4 405 30 6 10 7 530 5.3
Arithmetic mean =
100 100
(iii) Weighted Arithmetic Mean or Weighted Average
Sometimes we attach to the numbers X1, X 2 , ..., X K certain weighing factors or weights W1, W2 ,..., WK
depending upon the significance or importance of the numbers.
W1X1 W2 X 2 ... WK X K
Weighted Arithmetic Mean or Average = W1 W2 ... WK
34 DATA INTERPRETATION
Ex. 34: A student’s final marks in Mathematics, Physics, English and Hygiene are 82, 86, 90 and
70 respectively. If the respective credits received for these courses are 3, 5, 3 and 1,
determine the approximate average marks.
3 82 5 86 3 90 1 70
Soln: X 85
3 5 3 1
Alternative Method (Deviation Method):
If A is any assumed arithmetic mean (which may be any number that lies between minimum and
maximum values) and if di = X i A is the deviation of X i from A. Then the above Weighted
Arithmetic Mean can be expressed as
K
fd
i 1
i i
X A K
f
i 1
i
Ex. 35: In a class there are 75 students. The following table shows the number of students and
corresponding weights.
K KUNDAN 6
16
Find the average weight of all 75 students.
92
89
Soln: We can find the average weight either directly from the formula or from the deviation method.
Here we use deviation method
Let our assumed mean = 85
5 61 –24 –120
7 72 –13 –91
12 86 1 12
19 76 –9 –171
10 69 –16 –160
6 92 7 42
16 89 4 64
X A
fd i i 424
85 85
424
85 5.65 = 79.35 pounds
f i 75 75
Note: Weighted average with absolute value of weight or frequency is equal to weighted average with
ratio of frequency (if any).
Basics of Data Interpretation 35
Ex. 36: Out of 170 students in a classroom, 34 students have 85 marks in Maths, 85 students have
72 marks in Maths, and the remaining 51 students have 90 marks in Maths. Find the
average marks obtained by all 170 students in Maths.
Soln: As per the above, weights or frequencies are the number of students, ie 34, 85 and 51 students.
Ratio between weights or frequencies is 2 : 5 : 3.
34 85 85 72 51 90 2 85 5 72 3 90 80.
Weighted average = or
34 85 51 253
(iv) One average is what per cent of the other average
The average of one group of quantities is the same percentage of the average of the other group as its
Av A Sum A
sum is that of the sum of the other group. That is, Av Sum . There is no need to find the average
B B
of each of the groups.
Let us consider an example.
Ex. 37: Sale of the companies A and B is given below for the years 2000 to 2004. (figures in
million)
Q. Find that the average sale of the company A is what per cent of the average sale of the
company B for the years 2000 to 2004.
Soln: Method I:
Total sale of the company A for 2000 to 2004 = 2387
Total sale of the company B for 2000 to 2004 = 2642
K KUNDAN
2387
Required % = 100 90.5%
2642
Alternative Method:
Convert each of the three-digit figures to two-digit figures.
Total sale of the company A = 38 + 43 + 48 + 53 + 57 = 239
Total sale of the company B = 42 + 50 + 52 + 57 + 63 = 264
239
Required % = 264 100 90.5%
Note: (i) The Alternative Method is easier to solve such type of problems. Sometimes alternative method
may give an answer different from that through Method I. But for finding approximate value
Alternative Method is suggested.
(ii) If we have to find that the average of one group is what percentage more/less than the
average of another group, then there is no need to find the average of each of the groups. We
have to find only the sum of one group is what percentage more/less than that of the other
group.
(v) Difference between averages
Suppose there are two groups of n quantities each. The first group contains x1, x 2 , x 3 , ..., xn quanti-
ties and the second group contains y1, y2 , y3 , ..., yn . We have to find the difference of averages of the
first group and the second group.
x1 x 2 x 3 ... xn y1 y 2 y 3 ... yn
Required difference =
n n
x1 y1 x 2 y 2 x 3 y3
... x n yn
= = Average of differences
n
Difference of averages = Average of differences
Note: Here we take only the magnitude of the value, ie positive value. Let us consider an example.
36 DATA INTERPRETATION
Ex. 38: The following table shows the sale of the companies A and B for the years 2000 to 2004
(figures in million).
Q. Find the difference between average sales of companies A and B for the years 2000 to 2004.
478 496 536 524 649 597 682 692 724 736
Soln: Required difference =
5
18 12 52 10 12 24
4.8
5 5
f1x1 f 2 x 2
Arithmetic Mean or X = f1 f 2 ... (1)
Here X is weighted mean of x1 and x 2 . If X , x1 and x 2 are given, then we can find the ratio of weights or
K KUNDAN
I
x1
X
II
f1 f 2 X f1x1 f 2 x 2 f 1 X x1 f 2 x 2 X
x2
f1 x 2 X
f 2 X x1
... (2)
Equation (2) gives the ratio of f 1 and f 2 . The above equation may also be expressed by the diagram given
below.
x 2 X : X x 1 f1 : f 2
(cross-difference (cross-difference
of x 2 and X ) of X and x1 )
The above diagram can be alternatively expressed as given below. X is the weighted mean of x1 and x 2 .
1 : 2 f 1 : f 2
Ex. 39: A person travels the distance of 405 km in 9 hours. He travels a certain distance at 25 km/hr and
the remaining distance at 90 km/hr. Find the distance that he travelled at 90 km/hr.
405
Soln: Average speed = = 45 km/hr
9
Basics of Data Interpretation 37
45 km/hr is the weighted mean of 25 km/hr and 90 km/hr.
Here weight is time spent with each of the speeds.
I II
25 km/hr 90 km/hr
45 km/hr
45 20
9 : 4
9 36
Time taken with the rate of 90 km/hr = 4
hours
94 13
36 3240
Distance travelled = 13 90 13 km
Ex. 40: In an objective exam of 100 questions, 4 marks is allotted for every correct answer and 1 mark
is deducted for every wrong answer. After attempting all the 100 questions, a student got the
total of 270 marks. Find the number of questions that he attempted wrong.
270
Soln: Average marks obtained per question = 2.7
100
It means that 2.7 is the weighted mean of 4 and –1. Here, weights or frequencies are number of ques-
tions associated with correct and wrong answers.
C W
4 –1
2.7
3.7 1.3
37 : 13
100
Number of questions attempted wrong by the student = 37 13 100 = 26 questions.
K KUNDAN
Ex. 41: In the following bar graph, percentage increase in sales of companies A, B, C, D and E for the
year 2011 is given:
70 60
Percentage increase in sale
60
45
50
40 30
25
30
20
10
0
-10
-20
-15
A B C D E
Name of company
Q. 1: The companies A and B together have 35% increase in sale at the end of 2011. Find the ratio of
sale of the companies A and B at the beginning of 2011.
Soln: Overall percentage increase in the sale of the companies A and B together is 35%. It means that 35% is
the weighted mean of 30% and 45% and the weight is the sale of companies A and B at the beginning of
the year 2011.
A B
30% 45%
35%
10 5
2 : 1
Ratio of the sale of the companies A and B at the beginning of the year 2011 is 2 : 1. Because cross-
difference in the above diagram gives the ratio of weights.
Again, suppose we have to find the ratio of sale of the companies A and B at the end of the year 2011.
38 DATA INTERPRETATION
Let K be present in the ratio of sale of the companies A and B at the beginning of the year 2011.
130 26K 13K
Sale of the Company A at the end of 2011 = 2K
100 10 5
145 29K
Sale of the Company B at the end of 2011 = K ×
100 20
13K 20 52
Required ratio = 5 29K 29
Q. 2: Percentage increase in the sale of the companies A and B together and the companies B and C
together is 38% and 22% respectively at the end of the year 2011. Find the ratio of sale of the
companies A, B and C at the beginning of the year 2011.
Soln: First of all find the ratio of sale of the company A and the company B
38%, the overall increase in the sale of the companies A and B together, is the weighted mean of 30%
and 45%.
A B
30% 45%
38%
7 8 7:8
Now, we have to find the ratio of sale of the Company B and the Company C in a similar fashion.
B C
45% –15%
22%
37 23 37 : 23
Now, by the method of finding compound ratio, we have
A : B : C
7 : 8
K KUNDAN
37 : 23
259 : 296 : 184 (ratio of the sale of the companies A, B and C at the beginning of the year 2011)
Ratio Based Problems
The number of times one quantity contains another quantity of the same kind is called the ratio of the two
quantities.
4
The ratio 4 to 5 is written as 4 : 5 or . 4 and 5 are called terms of the ratio.
5
7
If the ratio of a to b is 1.75, then a : b 1.75 :1 :1 7 : 4
4
If ‘a’ and ‘b’ are the first and second terms respectively of a ratio of certain quantity, for whom only
integral value exists and (a, b) are coprime numbers or prime to each other, then the minimum number
of items in that quantity is (a + b).
Let us consider an example.
If the ratio of two brands X and Y of television sets sold by a agency is 37 : 59, the minimum number of
brands X and Y sold by the agency is (37 + 59) = 96, because 37 : 59 can’t be simplified further. (Fractional
part of television set does not exist.)
Note:
If the ratio of the first quantity to the second is N1 : D1 and the ratio of the second quantity to the third
is N 2 : D2 , then the ratio between first, second and third quantities is N1N 2 : D1N 2 : D1D2
The above ratio can be represented diagrammatically as given below:
1st quantity : 2nd quantity : IIIrd quantity
N1 : D1
N2 : D2
N1N 2 : D1N 2 : D1D2
Basics of Data Interpretation 39
Ex. 42: If the ratio between the first and the second numbers is 2 : 3 and that between the second and the
third numbers is 5 : 8, and the sum of the three numbers is 98. Find the second number.
Soln: First of all find the combined ratio of all the three numbers
First Second Third
2 : 3
5 : 8
10 : 15 : 24
15 15
Second number = 10 15 24 98 49 98 30.
In General:
Let A : B N1 : D1
B:C N 2 : D2
C : D N 3 : D3
D : E N 4 : D4
A : B : C N1N 2 : D1N 2 : D1D2
A : B : C : D N1N 2N 3 : D1N 2N 3 : D1D2N 3 : D1D2D3
A : B : C : D : E N1N 2N 3N 4 : D1N 2N 3N 4 : D1D2N 3N 4 : D1D2D3N 4 : D1D2D3D4
and so on.
Note the pattern in which the above ratios are compounded.
Ex. 43: The following bar graph shows the average annual package (salaries) offered by a company to
the IIM Graduates passing out from IIM A, IIM B, IIM K and IIM L in three streams: Finance,
Marketing and System.
K KUNDAN
Finance Marketing System
800 725
690
700 645 640
600 543 550
(in thousands)
490 495
450
500
387 410 440
400
300
200
100
0
IIM A IIM B IIM K IIM L
Q. 1: The number of marketing graduates passing out from IIM B, IIM K and IIM L is 39, 52 and 26
respectively. Find the average salary of marketing graduates from IIM B, IIM K and IIM L.
Soln: Ratio between marketing graduates passing out from these three institutes 39 : 52 : 26
3:4:2
3 387 4 495 2 440
1161 1980 880 4021
446.8
Average salary = 342 9 9
Q. 2: If the average salary of System graduates passing out from IIM K and IIM L is ` 6.93 lakhs per
annum, find the minimum number of System graduates passing out from IIM L.
Soln: 6.93 lakhs ` 693 thousand
Average salary of System graduates passing out from IIM K and IIM L is 640 and 725 respectively.
It means that 693 is the weighted mean of 640 and 725 and weight is the number of System graduates
passing out from each of the institutes.
40 DATA INTERPRETATION
IIM K IIM L
640 725
693
32 : 53
Ratio of System graduates passing out from IIM K to those from IIM L is 32 : 53. We have to find the
minimum number of System graduates passing out from IIM K.
As 32 and 53 are prime to each other, therefore the minimum number of System graduates from IIM K
is 32.
Note:
We can’t find either the exact number or the maximum number of System graduates passing out from
IIM K and IIM L in this particular condition.
Q. 3: If the average salary of Finance graduates passing out from IIM B and IIM K together and that of
those from IIM K and IIM L together is ` 5 lakhs 30 thousands per annum, find the ratio of finance
graduates passing out from IIM B, IIM K and IIM L.
Soln: ` 5 lakhs 30 thousands 530 thousands.
530 is the weighted mean of 490 and 550.
IIM B IIM K
490 550
530
20 40
1 : 2 (Ratio of Finance graduates from IIM B and IIM K)
Again, 530 is the weighted mean of 550 and 410.
IIM K IIM L
550 410
530
120 20
6 : 1 (Ratio of Finance graduates from IIM K and IIM L)
IIM B : IIM K : IIM L
K KUNDAN
1 : 2
6 : 1
6 : 12 : 2 3 : 6 : 1.
Ex. 44: The following line chart shows the ratio of export to import of the companies A and B from the
years 2000 to 2004.
3
Required answer = ` 20 crores = ` 15 crores
4
Q. 5: Value of Import of Company A in 2001 is ` 16 crores. What is the value of Export of that company
in the same year?
125
Soln: Ratio of Export to Import of Company A in 2001 = 1.25 = =5:4
100
Here also, we have to change the value of Import into the value of Export by using the given ratio. See
the method given below:
K KUNDAN 5
Required answer = ` 16 crores = ` 20 crores
4
Q. 6: If the ratio of export to import of Company A and Company B together in the year 2004 is 9 : 8, find
the ratio of total transaction (sum of export and import) of Company A and Company B in the year
2004.
Soln: Method I:
Let the total transaction of Company A and Company B be K 1 and K 2 respectively.
Ratio of export to import of Company A is 0.75 3 : 4
Ratio of export to import of Company B is 1.5 3 : 2
3 3
Total export of Company A = K1 K 2
7 5
4 2
Total import of Company B = K1 K 2
7 5
3 3
K1 K2
7 5
Ratio of total export to total import = 4 2
K1 K2
7 5
According to the question,
3 3
K1 K2 9
7 5
4 2
K1 K2 8
7 5
42 DATA INTERPRETATION
24 24 36 18
K1 K2 K1 K2
7 5 7 5
6 12 K1
5 K 2 7 K1 K
2
K KUNDAN
We can find the ratio of total transaction of the companies A and B by taking part of import in the above
alligation diagram.
Q. 7: The trade deficit of the Company B in the year 2000 is 60% lower than that in the year 2001. Find
the ratio of export of the Company B in the year 2002 to that in 2001. (Trade deficit = Import –
Export)
Soln: Let K 1 and K 2 be the constants present in the ratio of export and import of the Company B in the years
2000 and 2001 respectively.
Trade deficit of the Company B in the year 2002 = 4K 1 K1 3K 1
Trade deficit of the Company B in the year 2001 = 4K 2 3K 2 K 2
According to the question,
60
3K 1 K 2 1
100
4
3K 1 K 2
5
K1 4
15K1 4K 2
K 2 15
K1 4t 4
= 3K 3 15t 45 = 4 : 45
2
Basics of Data Interpretation 43
K KUNDAN
Ex. 45: If A and B be two sets containing 3 and 6 elements respectively, what can be the minimum
number of elements in A B ? Find also the maximum number of elements in A B .
Soln: We have,
n A B n A n B n A B
This shows that n A B is minimum or maximum according as n A B is maximum or minimum
respectively.
Case I: When n A B is minimum, ie n A B = 0
This is possible only when A B
In this case, n A B n A n B 0 n A n B 3 6 9
So, the maximum number of elements in nA B 9.
Case II: When n A B is maximum:
This is possible only when A B. In this case,
n A B 3
n A B n A n B n A B 3 6 3 6
So, minimum number of elements in n A B is 6.
44 DATA INTERPRETATION
Ex. 46: The following table shows the marks obtained by 100 students in the school examination in
Maths and Science and the Average of the two subjects:
Maths 7 13 21 38 21
Science 6 11 14 42 27
Q. 1: If to qualify in the exam one has to secure a minimum of 60% marks in either of the subjects, find
the least number of students who have qualified the examination.
Soln: Let set A denote the number of students who got 60% or more marks in Maths and set B the number
of students who got 60% or more marks in Science.
Thus, n(A) = 59
n(B) = 69
We have to find the least value of n A B and n A B n A n B n A B
n A B is minimum when n A B is maximum.
This is possible only when A B . In this case n A B 59
So, the least number of students who have qualified the exam = 59 + 69 – 59 = 69.
Q. 2: In the above problem, find the maximum number of students who have qualified the examina-
tion.
Soln: n A B is maximum when n A B is minimum.
K KUNDAN
The minimum value of n A B is n A n B 100 59 69 100 28
So, maximum number of students who got 60% or more marks in either subject
= n A n B n A B 59 69 28 100
Ex. 47: In a town of 10,000 families it was found that 40% buy newspaper A, 20% buy newspaper B, 10%
buy newspaper C. 5% buy A and B, 3% buy B and C, and 4% buy A and C. If 2% buy all the three
newspapers,
Q. 1: Find the number of families which buy newspaper A only.
Soln: Let A, B and C be the set of families buying newspapers A, B and C respectively. Let u be the universal
se t.
n(A) = 40% of 10000 = 4000; nA C 400
n B 2000 ; n A B C 200
n(C) = 1000 ; n(u) = 10000
n A B 500
n B C 300
Required number = n A B C n A n A B n A C n A B C
4000 500 400 200 3300
Q. 2: Find the number of families which buy none of the papers A, B and C.
Soln: Required number = n A B C n A B C n u n A B C
Also, n A B C n A n B n C n A B n B C n A C n A B C
= 4000 + 2000 + 1000 – 500 – 300 – 400 + 200 = 6000
Therefore, the required number of students = 10000 – 6000 = 4000.