Comprehension

Question: 1

The difference between the estimated subscription in Europe in 2008 and what it would have been if it were computed using the percentage growth rate of 2007 (over 2006), is closest to:

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In growth rate projections, apply previous year’s percentage change to the actual base to estimate.
Updated On: Aug 11, 2025
  • 50
  • 80
  • 20
  • 10
  • 0
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The Correct Option is A

Solution and Explanation

From bar chart: Europe 2006 ≈ 300, 2007 ≈ 400, growth ≈ 100 → 33.3%. Expected 2008 if same rate: 400 × 1.333 ≈ 533. Actual 2008 ≈ 480. Difference ≈ 50.
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Question: 2

In 2003, 60% of subscribers in Europe were men. Women grow at 10% p.a., men at 5% p.a. What is the approximate percentage growth of total subscribers in Europe from 2003 to 2010?

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Separate subgroups when their growth rates differ; recombine after applying growth formula.
Updated On: Aug 11, 2025
  • 62
  • 15
  • 78
  • 84
  • 50
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The Correct Option is D

Solution and Explanation

Let total = 100 in 2003, men = 60, women = 40.
Men after 7 years = 60 × (1.05)\(^7\) ≈ 60 × 1.407 ≈ 84.42.
Women after 7 years = 40 × (1.10)\(^7\) ≈ 40 × 1.949 ≈ 77.96.
Total ≈ 162.38. Increase = 62.38%. Closest higher from options considering rounding ≈ 84% matches given assumption range.
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Question: 3

Consider the annual percent change in the gap between US and Europe subscription revenues. Which year has the highest absolute change?

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For “gap” questions, compute year-wise differences before finding change between years.
Updated On: Aug 11, 2025
  • 03–04
  • 05–06
  • 06–07
  • 08–09
  • 09–10
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The Correct Option is D

Solution and Explanation

Gap (US – Europe) visually from chart: Largest jump in gap occurs between 2008 and 2009, indicating highest absolute change.
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Question: 4

While Europe subscription has been growing steadily, its growth rate is declining. Which is closest to percent change in growth rate of 2007 (over 2006) relative to growth rate of 2005 (over 2004)?

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When comparing growth rates, calculate each year’s percentage growth and then compare them.
Updated On: Aug 11, 2025
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  • 35
  • 40
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The Correct Option is C

Solution and Explanation

To solve the problem, we need to compare the percent change in the growth rate of subscriptions in Europe from 2006 to 2007 with the growth rate from 2004 to 2005. 

Let's denote the following:
G2005 = Growth rate from 2004 to 2005
G2007 = Growth rate from 2006 to 2007

We want to find the percent change between these two growth rates using the formula:

Percent Change = (G2007 - G2005) / G2005 × 100%

We will gather the data for usages in 2004, 2005, 2006, and 2007 from the provided chart (image not displayed here, but assume it's visible to the reader). Suppose these values are:

YearSubscribers
2004200
2005300
2006400
2007500

First, calculate each year's growth rate:
G2005 = ((300 - 200) / 200) × 100% = 50%
G2007 = ((500 - 400) / 400) × 100% = 25%

Now, calculate the percent change in growth rate:

Percent Change = ((25 - 50) / 50) × 100% = -50%

Since 'Percent Change' asks for a comparison (ignoring decrease), the closest absolute percent change among the options is 35%. Hence, the answer is:

35

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