Paper 1 · Data Interpretation
UGC NET June 2023 (13.06.2023) Shift-I
Passage
The following table shows Net National Income (in Lac Crore rupees) and Per capita Net National Income (in thousand rupees) of India for the 5 year period 2015-16 to 2019-20. Year with Net National Income and Per capita Net National Income: 2015-16 has 122 and 95; 2016-17 has 136 and 105; 2017-18 has 151 and 115; 2018-19 has 167 and 126; 2019-20 has 177 and 132. Based on the data in the table, answer the questions that follow.
Assuming per capita Net National Income grows beyond 2019-20 at the average annual rate of increase of the period 2015-16 to 2019-20, what will be its value (in thousand rupees) at the end of 2020-21?
A135.68
B138.35
C140.17
D143.34 ✓ Correct
Correct answer: (D) 143.34 — The yearly growth rates in per capita income are about 10.52%, 9.52%, 9.56% and 4.76% for the four transitions.
Explanation
★The yearly growth rates in per capita income are about 10.52%, 9.52%, 9.56% and 4.76% for the four transitions.
★Their average is (10.52 + 9.52 + 9.56 + 4.76)/4, which is about 8.59%.
★Applying 8.59% growth to the 2019-20 value 132 gives 132 x 1.0859, about 143.34, so the answer is 143.34.
★The added amount is 8.59% of 132, roughly 11.34 thousand rupees, lifting 132 to about 143.34.
★The value 135.68 applies only the last and smallest single-year rate rather than the average.
★The value 138.35 uses an under-stated average growth figure.
★The value 140.17 rounds the growth wrongly midway through the calculation.
★Projection questions require averaging the historical rates first, then compounding that average onto the latest known value.
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