CAT 2024 Slot 2 DILR Set 5 Q19–Q22

A DILR caselet from the Data Interpretation & Logical Reasoning (DILR) section of CAT 2024 Slot 2, with 4 questions (Charts & Tables). Answers are CAT's official key.

The set

This set relies on a figure in the original paper, which is not reproduced here. The questions and answers are below.

The two plots below give the following information about six firms A, B, C, D, E, and F for 2019 and 2023.

PAT: The firm's profits after taxes in Rs. crores,

ES: The firm's employee strength, that is the number of employees in the firm, and

PRD: The percentage of the firm's PAT that they spend on Research and Development (R&D).

In the plots, the horizontal and vertical coordinates of point representing each firm gives their ES and PAT values respectively. The PRD values of each firm are proportional to the areas around the points representing each firm. The areas are comparable between the two plots, i.e., equal areas in the two plots represent the same PRD values for the two years.


[Figure in the original paper]

Question 19

Assume that the annual rate of growth in PAT over the previous year (ARG) remained constant over the years for each of the six firms. Which among the firms A, B, C, and E had the highest ARG?
  1. A
    Firm C
  2. B
    Firm B
  3. C
    Firm A
  4. D
    Firm E

Answer: (D) Firm E Charts & Tables MCQ

Solution

  1. Read the plots. 2019 (ES, PAT): A (800, 3000), B (1000, 2800), C (600, 2400), D (600, 3900), E (1200, 2400), F (800, 2500). 2023: A (1300, 3900), B (1000, 3800), C (800, 3000), D (800, 2400), E (1400, 3500), F (1000, 3200).
  2. Constant ARG means the higher 2023/2019 PAT ratio wins.
  3. A: \(3900/3000 = 1.30\); B: \(3800/2800 \approx 1.36\); C: \(3000/2400 = 1.25\); E: \(3500/2400 \approx 1.46\).
  4. Firm E has the highest ARG.

Question 20


The ratio of the amount of money spent by Firm C on R&D in 2019 to that in 2023 is closest to
  1. A
    5 : 9
  2. B
    9 : 5
  3. C
    9 : 4
  4. D
    5 : 6

Answer: (B) 9 : 5 Charts & Tables MCQ

Solution

  1. Read the plots. 2019 (ES, PAT): A (800, 3000), B (1000, 2800), C (600, 2400), D (600, 3900), E (1200, 2400), F (800, 2500). 2023: A (1300, 3900), B (1000, 3800), C (800, 3000), D (800, 2400), E (1400, 3500), F (1000, 3200).
  2. R&D spend \(= \) PAT \(\times\) PRD, and PRD is proportional to circle area, i.e. to radius squared.
  3. Firm C's circle in 2019 has about 1.5 times the radius of its 2023 circle, so its PRD is about \(1.5^2 = 2.25\) times.
  4. Ratio \(= \frac{2400 \times 2.25}{3000 \times 1} = \frac{5400}{3000} = 1.8 = 9:5\).

Question 21

Which among the firms A, C, E, and F had the maximum PAT per employee in 2023?
  1. A
    Firm C
  2. B
    Firm A
  3. C
    Firm E
  4. D
    Firm F

Answer: (A) Firm C Charts & Tables MCQ

Solution

  1. Read the plots. 2019 (ES, PAT): A (800, 3000), B (1000, 2800), C (600, 2400), D (600, 3900), E (1200, 2400), F (800, 2500). 2023: A (1300, 3900), B (1000, 3800), C (800, 3000), D (800, 2400), E (1400, 3500), F (1000, 3200).
  2. PAT per employee in 2023: A \(3900/1300 = 3\), C \(3000/800 = 3.75\), E \(3500/1400 = 2.5\), F \(3200/1000 = 3.2\).
  3. Firm C is the maximum.

Question 22

Which among the firms C, D, E, and F had the least amount of R&D spending per employee in 2023?
  1. A
    Firm D
  2. B
    Firm E
  3. C
    Firm C
  4. D
    Firm F

Answer: (A) Firm D Charts & Tables MCQ

Solution

  1. Read the plots. 2019 (ES, PAT): A (800, 3000), B (1000, 2800), C (600, 2400), D (600, 3900), E (1200, 2400), F (800, 2500). 2023: A (1300, 3900), B (1000, 3800), C (800, 3000), D (800, 2400), E (1400, 3500), F (1000, 3200).
  2. R&D per employee \(= \frac{\text{PAT} \times \text{PRD}}{\text{ES}}\). In 2023 the circles of C, D and F are the same size; E's circle is about 1.5 times wider (about 2.25 times the area).
  3. With C, D, F's PRD as 1 unit: C \(3000/800 = 3.75\), D \(2400/800 = 3\), F \(3200/1000 = 3.2\), E \(3500 \times 2.25/1400 \approx 5.6\).
  4. Firm D spends the least per employee.

Same concept in other years

See every question on Scatter/bubble plot DI: read coordinates and areas to compare entities.

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