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The following bar chart gives the percentage growth in the number of households in the middle, upper middle and high income categories in the four regions for the period from 1987-88 to 1994-95
Additional directions for the last two questions of this set: If the same data as the above were used, with the additional information that the numbers of households in each category were equally distributed in all the regions then
Q. The ratio of total income for the high income category to the upper middle class increased by how much  percent in the given period?
  • a)
    20
  • b)
    36
  • c)
    25
  • d)
    Indeterminate
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
The following bar chart gives the percentage growth in the number of h...
In 1987-88:
The total income for the high income category households = 5000 x 75000 = Rs. 37,50,00,000 The total income for the upper middle class households = 10000 x 50000 = Rs. 50,00,00,000 Thus, the required ratio for 1987-88 = 375000000/500000000 = 3 : 4 = 0.75 It is given that the number of households in each category is equally distributed in all the regions.
Thus, there were 5000/4 = 1250 high income household in each region in 1987-88.
Similarly, there were 10000/4 = 2500 upper middle class households in each region in 1987-88.
In the year 1994-95: 
The percentage growth in high income households in the four regions is 245%, 425%, 175% and 150% Thus, the number of high income households throughout the country in 1994-95 is: 1250 x (3.45 + 5.25 + 2.75 + 2.5) i.e. 1250 x 13.95 i.e 17438 households (approx) The percentage growth in upper middle class households in the four regions is 200%, 340%, 120% and 140%
Thus, the number of upper middle class households throughout the country in 1994-95 is: 2500 x (3 + 4.4 + 2.2 + 2.4) i.e. 2500 x 12 i.e 30000 households (approx). Therefore Total income for the high-income households = 17438 x 1.90 x 75000 = Rs. 2,48,49,15,000. Total income for upper middle class = 30000 x 1.6 x 50000 = Rs. 2,40,00,00,000 Thus, the required ratio for 1994-95 = 2484915000/2400000000 = 1.035 Thus, the ratio has increased in absolute terms by 1.035 - 0.75 = 0.285 Hence, the required percentage increase = (0.285/0.75) x 100
= 38%
The closest option is 36%.
Hence, option 2.
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The following bar chart gives the percentage growth in the number of households in the middle, upper middle and high income categories in the four regions for the period from 1987-88 to 1994-95Additional directions for the last two questions of this set: If the same data as the above were used, with the additional information that the numbers of households in each category were equally distributed in all the regions thenQ. The ratio of total income for the high income category to the upper middle class increased by how muchpercent in the given period?a)20b)36c)25d)IndeterminateCorrect answer is option 'B'. Can you explain this answer?
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