Question

Which of the following years exhibits the highest percentage decrease over the preceding year in automobile production?

• A. 2004
• B. 2005
• C. 2006
• D. 2007
• E. 2008
• A. 2004
• B. 2005
• C. 2006
• D. 2007
• J. 2008
• A. \(11\%\)
• B. \(27\%\)
• C. \(45\%\)
• D. \(47\%\)
• O. \(52\%\)
• A. 2004
• B. 2005
• C. 2006
• D. 2007
• T. 2008

Answer 1

The Correct Option is C

Common solution for question 1-4:
Given information can be tabulated as below:

Table 1: Automobile Production Trends
	Passenger Vehicles	Commercial Vehicles	Three Wheelers	Total
2004	800	500	475	1775
2005	700	550	450	1700
2006	1025	675	475	2175
2007	1200	650	475	2325
2008	1250	600	350	2200
Total	4975	2975	2225	10,175

Table 2: Automobile Domestic Sales Trends
	Passenger Vehicles	Commercial Vehicles	Three Wheelers	Total
2004	700	450	300	1450
2005	675	500	350	1525
2006	900	625	400	1925
2007	1050	600	375	2050
2008	975	550	350	1875
Total	4300	2725	1775	8800

Answer 2

Since, whatever was not sold domestically was exported, the annual export data can be tabulated as below:

Automobile Export Sales Trends
	Passenger Vehicles	Commercial Vehicles	Three Wheelers	Total
2004	100	50	175	325
2005	25	50	100	175
2006	125	50	75	250
2007	150	50	100	300
2008	275	50	0	325

Growth in exports of automobiles in 2005 \(=\frac{175-325}{325}\times100=-46.15\%\)
Growth in exports of automobiles in 2006 \(=\frac{250-175}{175}\times100=42.85\%\)
Growth in exports of automobiles in 2007 \(=\frac{300-250}{250}\times100=20\%\)
Growth in exports of automobiles in 2008 \(= \frac{325-300}{300}\times100=8.33\%\)
Hence, the maximum growth is in the year 2006 and the minimum growth is in the year 2008.
So, the correct answer is C.

Answer 3

From table 2, we have the following data:
Domestic sale of commercial vehicle during the period 2004–2008 =2725
Domestic sale of passenger vehicle during the period 2004–2008 =4300
Domestic sale of three-wheeler during the period 2004–2008 =1715
Ratio of the domestic sale price of a commercial vehicle, a passenger vehicle, and a three-wheeler = 5 : 3 : 2
Required percentage
=\(\frac{2725\times5}{2725\times5+4300\times3+1715\times2}\times100\)
\(=\frac{13625}{13625+12900+3430}\times100\)
\(=\frac{13625}{29955}\times100=45.48\% \approx45\%\)
Thus, the correct answer is C.

Answer 4

From table 2, we conclude that domestic sale increases in the years 2005, 2006 and 2007 only.
From table 1, we conclude that production increases in the years 2006 and 2007 only.
So, we have to compare the ratios for the years 2006 and 2007 only.
Ratio between absolute increase in domestic sales and absolute increase in production in the year 2006
\(=\frac{400}{475}\times100=0.84\)
Ratio between absolute increase in domestic sales and absolute increase in production in the year 2007
=\(\frac{100}{150}=0.67\)
Therefore, the ratio is highest during 2006.
Thus, the correct answer is C