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Test: CAT Logical Reasoning & Data Interpretation- 1 - CAT MCQ


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20 Questions MCQ Test - Test: CAT Logical Reasoning & Data Interpretation- 1

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Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 1

The average age of the female patients who weigh 50 kg or above is approximately

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 1

There are 5 ladies whose weights are 50 or above
There ages are 50, 50, 70, 60 and 80
Average = 310/5 = 62

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 2

Who among the following did not appear for the Mathematics examination?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 2

Step 1: Apply Condition II
The student who missed the Mathematics examination did not miss any other examination.
Therefore, their Mathematics score must be equal to the average of the best 3 out of the 4 exam scores obtained.

Step 2: Eliminate impossible cases

  • If a student’s Mathematics score is greater than all other exam scores, it cannot be the average.

  • Thus, Deep and Esha can be eliminated immediately.

Step 3: Check each remaining candidate

  • Alva
    Best 3 scores = English (80), Hindi (75), Science (75)
    Average = (80 + 75 + 75) ÷ 3 = 230 ÷ 3 = 76.67
    Mathematics score = 70 → Not matching

  • Carl
    Best 3 scores = Hindi (80), Social Science (90), Science (100)
    Average = (80 + 90 + 100) ÷ 3 = 270 ÷ 3 = 90
    Mathematics score = 90 → Matching 

  • Foni
    Best 3 scores = English (83), Social Science (83), Science (88)
    Average = (83 + 83 + 88) ÷ 3 = 254 ÷ 3 = 84.67
    Mathematics score = 78 → Not matching

Step 4: Conclusion
Only Carl’s Mathematics score matches the required condition.

Final Answer

Carl most likely missed his Mathematics examination.

 
Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 3

Which students did not appear for the English examination?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 3

Step 1: Apply Condition II (Mathematics)
The student who missed the Mathematics examination did not miss any other examination.
This means the Mathematics score must equal the average of the best 3 out of 4 exam scores of that student.

  • Deep and Esha can be eliminated immediately since their Mathematics score is greater than all their other exam scores.

  • Checking the remaining candidates:

    • Carl: Best 3 scores = 80 (Hindi), 90 (Social Science), 100 (Science)
      Average = 270 ÷ 3 = 90, which matches the Mathematics score.
      ∴ Carl missed his Mathematics examination.

Step 2: Apply Condition III (Hindi and Science)
The student who missed Hindi and Science must have similar scores in these two subjects.

  • Alva has 75 in both Hindi and Science.

  • Deep has 90 in both Hindi and Science.
    Thus, one of Alva and Deep missed both Hindi and Science, while the other missed only Hindi.

Step 3: Identify English candidates
Carl, Alva, and Deep are unlikely to have missed English. So the candidates for missing English must be from Bithi, Esha, and Foni.

  • Bithi: Her English score (90) is higher than all her other scores → eliminate her.

  • Esha: Best 3 scores = 85 (Hindi), 95 (Maths), 60 (Science)
    Average = 240 ÷ 3 = 80, which matches → ∴ Esha missed English.

  • Foni: Best 3 scores = 78 (Maths), 83 (Social Science), 88 (Science)
    Average = 249 ÷ 3 = 83, which matches → ∴ Foni missed English.

Thus, Esha and Foni missed English.

Step 4: Apply Condition I (exactly two candidates missed each subject)

  • English: Esha and Foni

  • Hindi: Alva and Deep

  • Science: One of (Alva or Deep) + another candidate

  • Social Science: Two students still to be identified

Step 5: Check Science and Social Science

  • Bithi: Her Science and Social Science scores are similar.
    Best 2 out of 3 = 90 (English), 80 (Hindi)
    Average = 170 ÷ 2 = 85, which matches → ∴ Bithi missed Science and Social Science.

  • Foni: Her English and Social Science scores are similar.
    Considering best 2 out of 3, the average also equals 83 → ∴ Foni missed Social Science.

Step 6: Final allocation of missed exams

  • Mathematics: Carl

  • English: Esha and Foni

  • Hindi: Alva and Deep

  • Science: Bithi and one out of (Alva or Deep)

  • Social Science: Foni and Bithi

The students who missed just one exam are:

  • Carl (Mathematics)

  • Esha (English)

  • One out of Alva and Deep (Hindi)

Hence, of the six students, we can correctly determine the missed subjects for four of them (except Alva and Deep).
Therefore, the correct answer is: Option D – Esha and Foni.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 4

What BEST can be concluded about the students who did not appear for the Hindi examination?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 4

Step 1: Apply Condition II (Mathematics)

  • The student who missed the Mathematics examination did not miss any other examination.

  • This means the Mathematics score must equal the average of the best 3 out of the 4 exam scores.

  • Deep and Esha can be eliminated because their Mathematics score is greater than their other exam scores.

  • Checking the remaining candidates:

    Carl: Best 3 out of 4 → Hindi (80), Social Science (90), Science (100)
    Average = 270 ÷ 3 = 90, which matches the given Mathematics score.
    ∴ Carl missed his Mathematics examination.

Step 2: Apply Condition III (Hindi and Science)

  • The student who missed Hindi and Science should have similar scores in both subjects.

  • Alva has 75 in Hindi and Science.

  • Deep has 90 in Hindi and Science.
    Thus, one of Alva and Deep missed Hindi and Science, while the other missed only Hindi.

Step 3: Identify English candidates

  • Carl, Alva, and Deep are unlikely to have missed English.

  • Therefore, the candidate must be among Bithi, Esha, and Foni.

  • Bithi’s English score (90) is higher than all her other scores → eliminate her.

  • Esha: Best 3 out of 4 → Hindi (85), Mathematics (95), Science (60)
    Average = 240 ÷ 3 = 80, which matches.
    ∴ Esha missed her English examination.

  • Foni: Best 3 out of 4 → Mathematics (78), Social Science (83), Science (88)
    Average = 249 ÷ 3 = 83, which matches.
    ∴ Foni missed her English examination.

Thus, the English candidates are Esha and Foni.

Step 4: Apply Condition I (exactly two missed per subject)

  • English → Esha and Foni

  • Hindi → Alva and Deep

  • Science → one among (Alva or Deep) + another candidate

  • Social Science → two candidates still to be identified

Step 5: Check Science and Social Science

  • Bithi: Has similar scores in Science and Social Science.
    Best 2 out of 3 → English (90), Hindi (80)
    Average = 170 ÷ 2 = 85, which matches.
    ∴ Bithi likely missed Science and Social Science.

  • Foni: Has similar scores in English and Social Science.
    Considering best 2 out of 3, the average = 83, which matches.
    ∴ Foni also missed Social Science.

Step 6: Final Allocation

  • Mathematics: Carl

  • English: Esha and Foni

  • Hindi: Alva and Deep

  • Science: Bithi and one out of (Alva or Deep)

  • Social Science: Foni and Bithi

Step 7: Conclusion

  • The students who missed just one exam are:
    Carl (Mathematics), Esha (English), and one out of Alva and Deep (Hindi).

  • Of the six students, we can correctly determine the missed subjects for four of them (except Alva and Deep).

Final Answer: Option B – Alva and Deep

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 5

What BEST can be concluded about the students who missed the Science examination?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 5
  • Missed 1 exam → that score equals average of best 3 of the other 4.

  • Missed 2 exams → each missed score equals average of best 2 of the other 3.

  • Cond. I: There exists a set of four students who took all four core papers (E, H, S, SS).

  • Cond. II: If anyone missed Mathematics, they missed no other exam.

  • Cond. III: Exactly two missed Hindi: one missed only Hindi; the other missed Hindi and Science.

Step 1: Test “single‑miss Mathematics” (Cond. II restriction)

Compute if Maths equals avg(best3 of the other 4):

  • Alva 70 ≠ 76.67

  • Bithi 55 ≠ 86.67

  • Carl 90 = (100+90+80)/3 → possible

  • Deep 100 ≠ 90

  • Esha 95 ≠ 68.33

  • Foni 78 ≠ 84.67

Only Carl could have missed Maths, and then he missed no other subject. It is also consistent that nobody missed Maths (Cond. II is a restriction, not a must).

Step 2: Identify who can miss Hindi and Science (Cond. III)

Check single‑miss viability for H and S:

  • Alva: H=75 equals avg(best3 of {80,70,75,60})=75 → can miss Hindi. S=75 equals avg(best3 of {80,75,70,60})=75 → can miss Science.

  • Deep: H=90 equals avg(best3 of {70,100,90,80})=90 → can miss Hindi. S=90 equals avg(best3 of {70,90,100,80})=90 → can miss Science.

  • Bithi: S=85 equals avg(best3 of {90,80,55,85})=85 → can miss Science; H cannot.

  • Carl, Esha, Foni: cannot miss Science by the rule; none (except Alva/Deep) can miss Hindi.

Therefore, the two Hindi missers must be Alva and Deep, with exactly one of them also missing Science. The only other student who can miss Science is Bithi.

Step 3: Satisfy Cond. I (four students took all four core papers)

Choose assignments that keep four students all‑core and respect Cond. III:

  • Let Deep be the “Hindi+Science” student (required by Cond. III).

  • Let the other Hindi misser be Alva, missing only Hindi (fits single‑miss rule).

  • Among the remaining students, only Bithi can miss Science; assign Bithi as the second Science misser.

  • The four all‑core writers can then be chosen as Carl, Esha, Foni, and one of Alva/Bithi depending on whether they actually miss a core. Either way, the Science absentees remain the same.

This meets all conditions simultaneously.

Conclusion

The students who missed the Science examination are Deep and Bithi.

Answer: C) Deep and Bithi.

*Answer can only contain numeric values
Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 6

How many out of these six students missed exactly one examination?


Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 6

Based on Condition II, we understand that the student who missed the Mathematics examination did not miss any other examination. This indicates that the Maths score is bound to be the average of the best 3 out of the 4 exam scores obtained by this candidate. Based on this inference, we can proceed with identifying the math score that can be represented as an average of the rest of the scores. We can straightaway eliminate Deep and Esha as potential candidates, given that their Mathematics score is greater than the rest of the exam scores. After estimating the average scores for the rest of the candidates, we observe that only Carl has missed his Mathematics examination.
For Carl: best 3 out of 4 - 80(Hindi), 90(Social Science), 100(Science)
Avg. = 270/3 = 90 which matches the given value
∴  Carl missed his Mathematics examination.
Further, based on Condition III, we can surmise that the student who missed Hindi and Science should have similar average scores in these two subjects. We notice that Alva has the same score of 75 in both Hindi and Science. The same can be said about Deep, who has a score of 90 in both these subjects. Thus, one out of Alva and Deep missed out on Hindi and Science examination, while the second individual missed out only on the Hindi examination.
Since we know that Carl, Alva and Deep are unlikely to have missed out on the English exam, we can divert our attention to determining which individual out of Bithi, Esha and Foni failed to appear for this subject. However, we notice that Bithi's English score is greater than the rest of her scores, thereby helping us eliminate her as the potential candidate.
For Esha: best 3 out of 4 - 85(Hindi), 95(Mathematics), 60(Science)
Avg. = 240/3 = 80 which matches the given value
∴  Esha most likely missed her English examination.
For Foni: best 3 out of 4 - 78(Mathematics), 83(Social Science), 88(Science)
Avg. = 249/3 = 83 which matches the given value
∴  Foni most likely missed her English examination.
Based on Condition I, we know that exactly two candidates missed the examinations for English, Hindi, Science, and Social Science.
For English, we determined these individuals to be Esha and Foni. For Hindi, we determined these individuals to be Alva and Deep. For Science, we know one of the individuals is either Alva or Deep. Given that Carl, Alva and Deep cannot be a part of the group that missed Science or Social Science exam, we can proceed by carefully scrutinizing the rest of the group that includes Bithi, Esha and Foni.We notice that Bithi has a similar score in both Science and Social Science examination. Assuming that she did miss these exams, let us proceed to check if this was actually the case.
For Bithi: Best 2 out 3 - 90(English), 80(Hindi)
Avg = 170/2 = 85 which matches the given value
 ∴  Bithi is likely to have missed her Science and Social Science examinations.
We additionally notice that Foni has a similar score in English and Social Science. On considering the best 2 out of 3 scores, the average value of the score for both the subject holds (equal to 83). Thus, we can conclude that Bithi and Foni missed their Social Science examination.
Thus, the students who missed just one exam were: Carl (Mathematics); Esha (English) and one out of Alva and Deep (Hindi).
Hence of the six students, we can correctly determine the missed subjects for four of them (except Alva and Deep):
Mathematics: Carl ; English: Esha & Foni ; Hindi: Alva & Deep; Science: Bithi & one out of Alva and Deep ; Social Science: Foni & Bithi
Hence, the correct answer to this question is 3. {Carl (Mathematics); Esha (English) and one out of Alva and Deep (Hindi)}

*Answer can only contain numeric values
Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 7

Directions: Answer the question on the basis of the information given below.
There is an intense competition for getting into Indian team for two slots of openers. BCCI Selection Committee decides to closely monitor Dileep Trophy matches for the purpose. To keep the performance in proper perspective, it is, however, decided to award the players grades instead of recording the runs scored directly. Formula for grades is as under:

Performance of three of the openers P, Q and R (under consideration for selection) in the four matches in which they participated is as under:
(i) Every player scored at least one century, and at least one century was scored in every match (match I, match II, etc.).
(ii) In two of the matches, Q scored 0 and 30 runs. No other scores of Q or any other players were less than 40.
(iii) In each of the four matches, the grades obtained by the three openers were all different. However, it was only in match I and match III that grades not awarded to any of the three openers were identical.
(iv) R secured the same grade in both match II and match IV.
(v) P in match IV received the same grade as Q in his first match and R in his third match. None of them secured that grade in match II.
(vi) In one of the matches, P obtained the same grade as in match III. However, the grades of Q and R in these two matches were different. Only in this particular match (other than match III), was a half century scored and a player got F grade simultaneously.
Points for grades A, B, C and F are 4, 3, 1 and 0, respectively, and top 2 batsmen out of 3 are to be selected on the basis of points in the four matches (those selected should have more points than the third player for selection based on points).

At least how many runs were scored by Q in match III? Key in the value.


Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 7

From the given information, we can make the following empty table:

From (ii) and (iii), we get that Q got F grade in match II and match IV.
From (v) and (vi), P got same grade in match II and match III. Now, P could obtain grade B in match II and match III (from (vi)).
Now, in every match, at least one century was scored; thus, R obtained grade A in match II and match IV (from (iv)).
Thus, grade C would be obtained by Q in match I, R in match III and P in match IV (from (iii) and (v)).
Now, remaining rows and columns can be filled giving the final table as follows:

*Answer can only contain numeric values
Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 8

What is the average of maximum runs scored by Q in match I and match II? Key in the value upto 2 decimal places.


Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 8

From the given information, we can make the following empty table:

From (ii) and (iii), we get that Q got F grade in match II and match IV.
From (v) and (vi), P got same grade in match II and match III. Now, P could obtain grade B in match II and match III (from (vi)).
Now, in every match, at least one century was scored; thus, R obtained grade A in match II and match IV (from (iv)).
Thus, grade C would be obtained by Q in match I, R in match III and P in match IV (from (iii) and (v)).
Now, remaining rows and columns can be filled giving the final table as follows:

Maximum runs scored by Q in match I = 49
Maximum runs scored by Q in match II = 30
Average of maximum runs scored by Q in match I and match II = (49+30)/2 = 39.5

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 9

If an Indian has invested Rs.93,000 in UK Stock Market in January 2019 then in which month his/her portfolio has declined by maximum percentage in rupee terms?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 9

From the table, we can see that the % decline in the rupee was maximum in the month of July among the options and also the stock index of UK was lowest in July among the given months so the maximum decline in the portfolio was in July.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 10

If an Indian has invested Rs. 100,000 in 1st January 2019 till 1st January 2020, then whichoption is best for her?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 10

The percentage increase in the USA market index is the maximum among the three markets in a year.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 11

If a person from USA Invest $1500 in Indian stock market in 1st February then, on which of thefollowing date investment reaches a maximum value in Dollar terms?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 11
  1. On 1 May 2019

    • IndexMay = 119

    • INR/USD on that date = 69.0

    • RupeeValueMay = UnitsBought × IndexMay
      = (1 013.8889) × 119
      ≈ 120 652.78 ₹

    • USDValueMay = RupeeValueMay ÷ 69.0
      ≈ 120 652.78 ÷ 69.0
      ≈ 1 748.57 USD

  2. On 1 June 2019

    • IndexJun = 118

    • INR/USD on that date = 69.0

    • RupeeValueJun = (1 013.8889) × 118
      ≈ 119 638.89 ₹

    • USDValueJun = 119 638.89 ÷ 69.0
      ≈ 1 734.54 USD

  3. On 1 October 2019

    • IndexOct = 120

    • INR/USD on that date = 68.0

    • RupeeValueOct = (1 013.8889) × 120
      ≈ 121 666.67 ₹

    • USDValueOct = 121 666.67 ÷ 68.0
      ≈ 1 789.51 USD

  4. On 1 December 2019

    • IndexDec = 122

    • INR/USD on that date = 73.0

    • RupeeValueDec = (1 013.8889) × 122
      ≈ 123 694.44 ₹

    • USDValueDec = 123 694.44 ÷ 73.0
      ≈ 1 694.33 USD

Comparing the four USD‐values:

  • 1 May 2019 → ≈ 1 748.57 USD

  • 1 June 2019 → ≈ 1 734.54 USD

  • 1 October 2019 → ≈ 1 789.51 USD

  • 1 December 2019 → ≈ 1 694.33 USD

The single largest value in dollar terms is on 1 October 2019, at approximately $1 789.51.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 12

If a person from India Invest Rs. 108,000 in US stock market in the month of January 2019 then, on which one of the following dates the investment reaches minimum value in rupee terms?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 12

Among the given options since the dollar got weak the most on 1st May 2019 and also the US market index fell below the value of the index on 1st January so therefore the minimum value reaches was in 1st May 2019.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 13

What is the profit made by Mr. Brown on week 4?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 13



Total C.P of magazines of Week 1 = 54 × 7.5 + 88 × 8 = 1,109
Total C.P of magazines of Week 2 = 34 × 8 + 88 × 6.75 + 2 × 6.5 = 879
Total C.P of magazines of Week 3 = 72 × 6.5 + 36 × 7.75 = 747
Total C.P of magazines of Week 4 = 84 × 7.75 + 30 × 6 = 831
Total C.P of magazines of Week 5 = 66 × 6 + 42 × 6.52 = 669
Total C.P of magazines of Week 6 = 22 × 6.52 + 82 × 8.50 = 840

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 14

For how many magazines that Mr. Brown sold was the profit percentage more than 20%?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 14



Total C.P of magazines of Week 1 = 54 × 7.5 + 88 × 8 = 1,109
Total C.P of magazines of Week 2 = 34 × 8 + 88 × 6.75 + 2 × 6.5 = 879
Total C.P of magazines of Week 3 = 72 × 6.5 + 36 × 7.75 = 747
Total C.P of magazines of Week 4 = 84 × 7.75 + 30 × 6 = 831
Total C.P of magazines of Week 5 = 66 × 6 + 42 × 6.52 = 669
Total C.P of magazines of Week 6 = 22 × 6.52 + 82 × 8.50 = 840

Thus, the number of magazines with profit > 20% is 410.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 15

In which of the following weeks did Mr. Brown make the lowest profit?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 15



Total C.P of magazines of Week 1 = 54 × 7.5 + 88 × 8 = 1,109
Total C.P of magazines of Week 2 = 34 × 8 + 88 × 6.75 + 2 × 6.5 = 879
Total C.P of magazines of Week 3 = 72 × 6.5 + 36 × 7.75 = 747
Total C.P of magazines of Week 4 = 84 × 7.75 + 30 × 6 = 831
Total C.P of magazines of Week 5 = 66 × 6 + 42 × 6.52 = 669
Total C.P of magazines of Week 6 = 22 × 6.52 + 82 × 8.50 = 840

Lowest profit i.e. $138 was made in week 4.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 16

What is the average profit per week that Mr. Brown made from week 3 to week 6 (inclusive of both the weeks)?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 16



Total C.P of magazines of Week 1 = 54 × 7.5 + 88 × 8 = 1,109
Total C.P of magazines of Week 2 = 34 × 8 + 88 × 6.75 + 2 × 6.5 = 879
Total C.P of magazines of Week 3 = 72 × 6.5 + 36 × 7.75 = 747
Total C.P of magazines of Week 4 = 84 × 7.75 + 30 × 6 = 831
Total C.P of magazines of Week 5 = 66 × 6 + 42 × 6.52 = 669
Total C.P of magazines of Week 6 = 22 × 6.52 + 82 × 8.50 = 840

Total profit from week 3 to week 6 is $864.72.
Average for the 4 weeks = $216.18

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 17

By what percent is the profit gained in week 1 more/less than that gained in week 2?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 17



Total C.P of magazines of Week 1 = 54 × 7.5 + 88 × 8 = 1,109
Total C.P of magazines of Week 2 = 34 × 8 + 88 × 6.75 + 2 × 6.5 = 879
Total C.P of magazines of Week 3 = 72 × 6.5 + 36 × 7.75 = 747
Total C.P of magazines of Week 4 = 84 × 7.75 + 30 × 6 = 831
Total C.P of magazines of Week 5 = 66 × 6 + 42 × 6.52 = 669
Total C.P of magazines of Week 6 = 22 × 6.52 + 82 × 8.50 = 840

Difference of profit of week 1 and week 2 = $361 - $240 = $121
Now, 121/361 × 100% = 33.52%

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 18

If NP/NW ratio is considered to be an index of performance, which of the business houses is the best performer?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 18

By observing table II, we can see that NP/NW ratio is maximum for ITC.
Hence it is the best performer.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 19

If executive compensation is a function of operating profit on sales, which organisation would be the most remunerative for an executive?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 19

Operating Profit/Sales for Birla
= 324145/1280812 = 0.253.
Operating Profit/Sales for Mafatlal
= 26485/1611263 = 0.016.
Operating profit/Sales for RPG
= 62580/289391 = 0.216.
Operating profit/Sales for ESSAR
= 91092/155391 = 0.586.
Thus ESSAR is the best choice.

Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 20

If dividends are a function of net profit over net worth, which company should a person invest in?

Detailed Solution for Test: CAT Logical Reasoning & Data Interpretation- 1 - Question 20

The question suggests that dividends are determined by the ratio of net profit to net worth. While a higher Net Profit/Net Worth ratio indicates greater profitability relative to equity, investment decisions should consider additional factors such as:

  • Growth potential
  • Market position
  • Overall financial health

Without specific data comparing these companies' ratios, ITC is selected based on the premise provided. However, investors should conduct a comprehensive analysis beyond this single metric before making a decision.

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