Comprehension
A multinational corporation is planning to establish new offices in five cities: A, B, C, D, and E, with a total budget of 150 million USD allocated for this expansion. To determine the fund allocation for each city, a composite score is calculated based on three key factors: Market Potential, Infrastructure, and Cost of Living. These factors are weighted at 40%, 35%, and 25%, respectively. City A has the highest market potential among the cities but scores lowest in infrastructure quality. City B ranks highest in infrastructure quality but has the highest cost of living. City C, despite having the lowest market potential, offers the lowest cost of living among the cities under consideration.
The composite score for each city is computed as a weighted average of its ratings on these factors, where ratings range from 1 to 10. The fund allocation for each city will be directly proportional to its composite score, reflecting its overall attractiveness for establishing new offices based on market potential, infrastructure quality, and cost of living considerations.
Question: 1

If the composite scores of cities A, B, and C are 7.2, 7.8, and 6.5 respectively, calculate the total fund allocation for these three cities.

Updated On: Aug 20, 2024
  • 105 million USD
  • 112.5 million USD
  • 120 million USD
  • 127.5 million USD
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is B

Solution and Explanation

Total composite score for A, B, and C \(= 7.2 + 7.8 + 6.5 = 21.5\)

Total fund allocation for these cities = \(\left( \frac{21.5}{\text{Total composite score}} \right) \times 150 \text{ million USD}\)

Assuming equal weightage for all cities, total composite score 

\(= 5 \times\) average composite score \(= 5 \times 7.2 = 36\)

Total fund allocation =\(\left( \frac{21.5}{36} \right) \times 150\) million USD = 112.5 million USD

Was this answer helpful?
0
0
Question: 2

If city D's fund allocation is 40 million USD and its composite score is 8, what is the composite score of city E, given that its fund allocation is 30 million USD?

Updated On: Aug 20, 2024
  • 6
  • 6.5
  • 7
  • 7.5
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is A

Solution and Explanation

Fund allocation is directly proportional to composite score.

Ratio of fund allocations for D and E = \(\frac{40}{30} = \frac{4}{3}\)

Ratio of composite scores for D and \(E = \frac{8}{x}\)

Equating the ratios: \(\frac{4}{3} = \frac{8}{x}\)

\(x = 2\times3 = 6\)

Was this answer helpful?
0
0
Question: 3

If the weightage for market potential is increased to 50%, and all other factors remain constant, would the total fund allocation for cities with above-average market potential:

Updated On: Aug 20, 2024
  • Increase
  • Decrease
  • Remain the same
  • Cannot be determined
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is A

Solution and Explanation

Increasing the weightage of market potential would increase the composite score for cities with above-average market potential, leading to a higher fund allocation for them.
Was this answer helpful?
0
0
Question: 4

If a new factor, "Talent Availability," is introduced with a weightage of 15%, how would this affect the calculation of composite scores and fund allocation?

Updated On: Aug 20, 2024
  • Composite scores would increase, fund allocation would increase for all cities.
  • Composite scores would decrease, fund allocation would decrease for all cities.
  • Composite scores would change, fund allocation distribution might change.
  • Composite scores would remain unchanged, fund allocation would remain unchanged.
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is C

Solution and Explanation

Introducing a new factor would recalculate the composite scores for all cities, potentially changing their relative rankings and fund allocations.
Was this answer helpful?
0
0
Question: 5

If the average cost of living in city A is 20% higher than in city C, and the infrastructure score of city A is 2 points lower than city C, then which of the following statements is definitely true?

Updated On: Aug 20, 2024
  • City A has a higher market potential than city C
  • City A has a lower composite score than city C.
  • City A has a higher fund allocation than city C.
  • None of the above
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is D

Solution and Explanation

The information provided is insufficient to determine the relationship between the composite scores and fund allocations of city A and city C.
Was this answer helpful?
0
0

Top Questions on Data Interpretation

View More Questions

Questions Asked in CAT exam

View More Questions