Data Interpretation

Scatter Plot

Easy

The two plots below show data for four companies code-named A, B, C, and D over three years - 2019, 2020, and $2021$ . The first plot shows the revenues and costs incurred by the companies during these years. For example, in 2021, company C earned Rs. $100$ crores in revenue and spent Rs. $30$ crores. The profit of a company is defined as its revenue minus its costs.

Figure for CAT 2022 DILR question 15 (Data Interpretation)

The second plot shows the number of employees employed by the company (employee strength) at the start of each of these three years, as well as the number of new employees hired each year (new hires). For example, Company B had $250$ employees at the start of 2021, and $30$ new employees joined the company during the year.

Profit per employee is the ratio of a company's profit to its employee strength. For this purpose, the employee strength in a year is the average of the employee strength at the beginning of that year and the beginning of the next year. In $2020$ , which of the four companies had the highest profit per employee?

Company C

Company B

Company A

Company D

✅ Correct Option: 2

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Understanding the set :-

This is a scatter plot (or scatter chart) representation, this is a type of graph used to show how two things are related — in this case:

Revenue (money earned) is shown on the bottom line (x-axis).

Costs (money spent) is shown on the side line (y-axis).

Each dot (or shape) shows how much money a company earned and spent in a particular year.

Triangles (▲) are for the year 2019 (blue).

Squares (■) are for the year 2020 (orange).

Circles (●) are for the year 2021 (gray).

So if you see a dot far to the right, it means high revenue.

If it’s high up, it means high costs.

In this question there are 2 scatter chart -

a) shows the revenues and costs incurred

b) shows the number of employees employed by the company (employee strength)

Year →	2019				2020				2021
Particular ↓	A	B	C	D	A	B	C	D	A	B	C	D
Revenue (in Rs. Crores)	90	100	23	50	90	90	70	20	60	30	100	70
Cost (in Rs. Crores)	85	75	20	40	65	40	60	50	30	30	30	70
Profit (in Rs. Crores)	5	25	3	10	25	50	10	-30	30	0	70	0
Employee Strength	150	210	325	400	140	240	325	410	150	250	325	400
New Hires	20	35	45	30	35	45	40	35	25	30	35	40

This table contains all the information given in the two charts together.

1st chart contains revenue on x axis

and cost on Y axis

subtracting which (Revenue - Profit) we will get Profit.

2nd chart contains Employee strength on x - axis

and new hires on Y axis.

Making a table like this is not compulsory, as it would eat up a lot of time, you can rather just write down only those data which the questions

of the set demands.

Year →	$2019$				$2020$				$2021$
Particular ↓	A	B	C	D	A	B	C	D	A	B	C	D
Revenue (in Rs. Crores)	$90$	$100$	$23$	$50$	$90$	$90$	$70$	$20$	$60$	$30$	$100$	$70$
Cost (in Rs. Crores)	$85$	$75$	$20$	$40$	$65$	$40$	$60$	$50$	$30$	$30$	$30$	$70$
Profit (in Rs. Crores)	$5$	$25$	$3$	$10$	$25$	$50$	$10$	$-30$	$30$	$0$	$70$	$0$
Employee Strength	$150$	$210$	$325$	$400$	$140$	$240$	$325$	$410$	$150$	$250$	$325$	$400$
New Hires	$20$	$35$	$45$	$30$	$35$	$45$	$40$	$35$	$25$	$30$	$35$	$40$

For year $2020$ ,

	Profit	Employee strength	Profit per employee
Company A	$25$	$(140 + 150)/2 = 145$	$25/145 = 100/580$
Company B	$50$	$(240 + 250)/2 = 245$	$50/245 = 100/490$
Company C	$10$	$(325 + 325)/2 = 325$	$10/325 = 100/3250$
Company D	$-30$	$(410 + 400)/2 = 405$	$-30/405$

Hence, for year $2020$ , company B had the highest profit per employee

Question 11

Considering all three years, which company had the highest annual profit?

Question 12

Which of the four companies experienced the highest annual loss in any of the years?

Question 13

The ratio of a company's annual profit to its annual costs is a measure of its performance. Which of the four companies had the lowest value of this ratio in 2019?

Question 14

The total number of employees lost in 2019 and 2020 was the least for:

Solution

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