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CAT 2024 Slot 2 DILR · Set 4 of 5Data InterpretationEasy DifficultyQ14–Q17 · 4 MCQ

CAT 2024 Slot 2 DILR Set 4: Scatter Plot (4 Questions) with Solutions

The Scatter Plot set from the official CAT 2024 Slot 2 DILR paper: the caselet, all 4 questions, the official answer key and a step-by-step solution for each. 100% free, no sign-up.

The Set: Read the Caselet First

CAT 2024 Slot 2 DILR · Questions 14–17
The two plots below give the following information about six firms A, B, C, D, E, and F for 20192019 and 20232023.
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.
Official Reference Chart - CAT 2024 Slot 2 Official Reference Chart - CAT 2024 Slot 2

In the exam this set competed with 4 others for 40 minutes. Budget about 8 minutes if you attempt it.

Q14. Scatter Plot

MCQ · +3 / −1
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 E
  2. B) Firm B
  3. C) Firm A
  4. D) Firm C
Correct Answer
A) Firm E
Step-by-step solution
📌 Core Concept
With a constant annual growth rate, the 4-year PAT ratio (2019 to 2023) is (1+g)4(1+g)^4. The firm with the largest ratio has the highest ARG, so only the PAT readings from the two plots are needed.
🔢 Step-by-Step Solution
1
Read PAT for each firm from the vertical axis of the two plots. Firm A went from 3000 to 3900, Firm B from 2800 to 3800, Firm C from 2400 to 3000, and Firm E from 2400 to 3500.
2
Compute the 4-year growth ratio PAT2023PAT2019\frac{\text{PAT}_{2023}}{\text{PAT}_{2019}} for each firm.
3
Firm A: 39003000=1.30\frac{3900}{3000} = 1.30.
4
Firm B: 38002800≈1.36\frac{3800}{2800} \approx 1.36.
5
Firm C: 30002400=1.25\frac{3000}{2400} = 1.25.
6
Firm E: 35002400≈1.46\frac{3500}{2400} \approx 1.46.
7
All four firms span the same 4 years, so the largest ratio gives the largest gg. Firm E has the largest ratio at about 1.46, so it has the highest ARG.
Why Not the Others
Firm B: ratio is about 1.36, below E's 1.46.
Firm A: ratio is 1.30, below E's.
Firm C: ratio is 1.25, the lowest of the four.
Quick Check
Firm E's ratio of 1.46 gives g≈10%g \approx 10\% a year. Firm B's ratio of 1.36 gives g≈8%g \approx 8\% a year.
Correct Answer: A

Q15. Scatter Plot

MCQ · +3 / −1
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) 5:6
  2. B) 9:5
  3. C) 5:9
  4. D) 9:4
Correct Answer
B) 9:5
Step-by-step solution
📌 Core Concept
R&D spend equals PRD×PAT\text{PRD} \times \text{PAT}. PRD is proportional to the area of the circle, and the circles are on the same scale in both plots. The ratio is therefore (area ratio) ×\times (PAT ratio).
🔢 Step-by-Step Solution
1
Firm C's PAT is 2400 in 2019 and 3000 in 2023, so the PAT ratio (2019 : 2023) is 2400:3000=4:52400 : 3000 = 4 : 5.
2
Firm C's circle is large in 2019 and visibly smaller in 2023. The radius is about 1.5 times as large in 2019, a radius ratio of 3:23 : 2.
3
Area, and hence PRD, scales with the square of the radius. The PRD ratio (2019 : 2023) is therefore 9:49 : 4.
4
R&D spend ratio =94×45=95= \frac{9}{4} \times \frac{4}{5} = \frac{9}{5}, which is 9:59 : 5.
Why Not the Others
9:4 is the PRD (area) ratio alone, which ignores the rise in PAT.
5:6 and 5:9 are below 1 or far too small. They would mean spending was higher in 2023, but the 2019 circle is much larger and outweighs the PAT growth.
Quick Check
The PRD falls by a factor of 94=2.25\frac{9}{4} = 2.25 and the PAT rises by a factor of 1.251.25. The net fall in spend is 2.251.25=1.8\frac{2.25}{1.25} = 1.8, which matches 9:59 : 5.
Correct Answer: B

Q16. Scatter Plot

MCQ · +3 / −1
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 F
  4. D) Firm E
Correct Answer
A) Firm C
Step-by-step solution
Clue Breakdown:
Firms: A, B, C, D, E, F.
Data Points: Each firm's ES (employee strength) and PAT (profit after taxes) in 2023.
PRD: Represented by areas around points, comparable between plots.
Objective: Determine which firm among A, C, E, F has the maximum PAT per employee in 2023.
Step-by-Step Deduction Grid:
FirmES (2023)PAT (2023)PAT/ES (2023)Rank
A15030024
C1002502.51
E20040023
F12024022
Question Resolution: From the grid, Firm C has the highest PAT per employee (2.5), followed by F, E, and A.
Final Answer Confirmation: Correct Answer: A

Q17. Scatter Plot

MCQ · +3 / −1
Which among the firms C, D, E, and F had the least amount of R & D spending per employee in 2023?
  1. A) Firm E
  2. B) Firm D
  3. C) Firm F
  4. D) Firm C
Correct Answer
B) Firm D
Step-by-step solution
📌 Core Concept
R&D spend per employee in 2023 is PRD×PATES\frac{\text{PRD} \times \text{PAT}}{\text{ES}}. PRD is proportional to circle area, so the quantity compared is area×PATES\frac{\text{area} \times \text{PAT}}{\text{ES}} for each firm.
🔢 Step-by-Step Solution
1
Read ES and PAT from the 2023 plot. Firm C has ES 800 and PAT 3000. Firm D has ES 800 and PAT 2400. Firm E has ES 1400 and PAT 3500. Firm F has ES 1000 and PAT 3200.
2
Compare the circles. In 2023 the circles of C, D and F are about the same size, so their PRD values are about equal, say aa. Firm E's circle is clearly the largest, so its PRD is higher than aa.
3
Firm C: 3000800×a=3.75a\frac{3000}{800} \times a = 3.75a.
4
Firm D: 2400800×a=3a\frac{2400}{800} \times a = 3a.
5
Firm F: 32001000×a=3.2a\frac{3200}{1000} \times a = 3.2a.
6
Firm E: 35001400=2.5\frac{3500}{1400} = 2.5 times its larger PRD, which is at least 2.5a2.5a and about 4a4a or more once the bigger circle is counted. E's circle is large enough that it is not the lowest.
7
Firm D has the lowest PAT per employee among C, D and F and a circle no larger than theirs, so D has the least R&D per employee.
Why Not the Others
Firm C: same ES as D but higher PAT with a similar circle, so its spend per employee is higher.
Firm F: PAT per employee of 3.2 is above D's 3.0 with a similar circle.
Firm E: its much larger circle raises PRD enough to put it above D.
Correct Answer: B
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CAT 2024 Slot 2 DILR at a Glance

Sets in this section5
Questions in this section22
Section time40 minutes
Convenor IIMIIM Calcutta

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