This category presents multiple choice questions (MCQs) focused on interpreting data presented in various formats such as tables, charts, and graphs. Data interpretation is a crucial skill for analyzing information, drawing conclusions and making informed decisions in various fields. The MCQs test the ability to extract relevant information, identify trends and make inferences based on visual data representation.
A line graph shows the growth of a company’s revenue.
Question
- A. 20%
- B. 30%
- C. 40%
- D. 50%
View Answer
Correct Answer ( C )
This problem requires calculating the compound annual growth rate (CAGR). While a simple average increase would be ($5 million — $1 million) / 5 years = $800,000 per year, this does not account for compounding . To find the CAGR we use the formula : CAGR = [(Ending Value / Beginning Value)(1 / Number of Years)] — 1 = (5(0.2)) — 1 = 41.4% or . This indicates that the company experienced average annual revenue growth
A pie chart shows the distribution of a company’s annual.
Question
- A. 10%
- B. 20%
- C. 30%
- D. 40%
View Answer
Correct Answer ( B )
A pie chart represents data as proportions of a whole circle. Since a circle has 360 degrees, each degree represents 1/360th of the total budget. The marketing department’s allocation of 72 degrees represents (72/360) of the total budget . This fraction simplifies to 1/5, which is equivalent to 20%. Therefore, 20% of the annual budget is allocated to the marketing department. This type of data interpretation is crucial for understanding the distribution of resources within an organization and identifying potential areas for optimization or reallocation .
The bar graph below shows the number of cars sold.
Question
- A. 50
- B. 60
- C. 70
- D. 80
View Answer
Correct Answer ( B )
To calculate the average number of cars sold per month we need to sum the number of cars sold in each month and then divide by the total number of months. Let’s assume that the bar graph shows the sales data for 12 months (January to December). After summing the values for each month (from the hypothetical bar graph, these values would need to be obtained), you would divide that total by 12 to find the average . For example, if the total number of cars sold over the year was 720, the average would be 720