Internet Subscription Revenues

CAT 2008 Slot 1 · DILR · Medium · Data Interpretation

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Passage / data set

The bar chart below shows the revenue received in million US Dollars (USD), from subscribers to a particular Internet service for US and Europe (2003 to 2010 estimated).

Key values for Europe:

  • 2004: 180
  • 2005: 280
  • 2006: 380
  • 2007: 500
  • 2008: 600 (estimated)

Question 1 of 4

The difference between the estimated subscription in Europe in 2008 and what it would have been if it were computed using the percentage growth rate of 2007 (over 2006), is closest to:

  1. A.

    50

  2. B.

    80

  3. C.

    20

  4. D.

    10

  5. E.

    0

Answer

A

Explanation

Growth rate in 2007 over 2006 =500−380380=120380≈31.58%= \frac{500 - 380}{380} = \frac{120}{380} \approx 31.58\%. Expected subscription in 2008 =500×1.3158≈658= 500 \times 1.3158 \approx 658. Actual estimated subscription in 2008 =600= 600. Difference =658−600=58≈50= 658 - 600 = 58 \approx 50.

Question 2 of 4

In 2003, sixty percent of subscribers in Europe were men. Given that women subscribers increase at the rate of 10 percent per annum and men at the rate of 5 percent per annum, what is the approximate percentage growth of subscribers between 2003 and 2010 in Europe?

  1. A.

    62

  2. B.

    15

  3. C.

    78

  4. D.

    84

  5. E.

    50

Answer

A

Explanation

Let total subscribers in 2003 =100x= 100x. Men =60x= 60x, Women =40x= 40x.

In 2010 (7 years later): Men in 2010 =60x×(1.05)7≈60x×1.407=84.42x= 60x \times (1.05)^7 \approx 60x \times 1.407 = 84.42x. Women in 2010 =40x×(1.10)7≈40x×1.9487=77.95x= 40x \times (1.10)^7 \approx 40x \times 1.9487 = 77.95x. Total in 2010 =84.42x+77.95x=162.37x= 84.42x + 77.95x = 162.37x.

Percentage growth =162.37x−100x100x×100≈62.36%≈62%= \frac{162.37x - 100x}{100x} \times 100 \approx 62.36\% \approx 62\%.

Question 3 of 4

Consider the annual percent change in the gap between subscription revenues in the US and Europe. What is the year in which the absolute value of this change is the highest?

  1. A.

    03 - 04

  2. B.

    05 - 06

  3. C.

    06 - 07

  4. D.

    08 - 09

  5. E.

    09 - 10

Answer

D

Explanation

Gap in 2008 =780−600=180= 780 - 600 = 180. Gap in 2009 =810−700=110= 810 - 700 = 110. Percent change in gap (08 - 09) =∣110−180∣180=70180≈38.89%= \frac{|110 - 180|}{180} = \frac{70}{180} \approx 38.89\%, which is the highest absolute percent change.

Question 4 of 4

While the subscription in Europe has been growing steadily towards that of the US, the growth rate in Europe seems to be declining. Which of the following is closest to the percent change in growth rate of 2007 (over 2006) relative to the growth rate of 2005 (over 2004)?

  1. A.

    17

  2. B.

    20

  3. C.

    35

  4. D.

    60

  5. E.

    100

Answer

C

Explanation

Growth rate 2005 over 2004 =280−190190=90190≈47.37%= \frac{280 - 190}{190} = \frac{90}{190} \approx 47.37\%. Growth rate 2007 over 2006 =500−380380=120380≈31.58%= \frac{500 - 380}{380} = \frac{120}{380} \approx 31.58\%.

Percent change =∣31.58−47.37∣47.37×100≈33.3%≈35%= \frac{|31.58 - 47.37|}{47.37} \times 100 \approx 33.3\% \approx 35\%.

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