Directions for questions 9 to 11: Refer to the graph given below and answer…

2025

Directions for questions 9 to 11: Refer to the graph given below and answer the questions given after that accordingly.

The graph given shows price variation of three types of wood over 1987 – 1993 in Rs/m3. 1 ton = 1000 kg and 1m3 = 800 kg.

In 1993, a company's total sales was made of 40% of P, 30% of ST and 30% of L. The average realization per m3 in 1993 was:

  1. A.

    Rs. 8121

  2. B.

    Rs. 7211

  3. C.

    Rs. 7219

  4. D.

    None of these

Show answer & explanation

Correct answer: D

Concept: A weighted average combines several values using different importance, or weight, for each — if a quantity is made up of proportions w1, w2, w3 (summing to 100%) of underlying values v1, v2, v3, the overall average value equals w1×v1 + w2×v2 + w3×v3.

Applying this to 1993:

  1. Read off the 1993 prices per m3 from the graph: P = Rs. 9000, ST = Rs. 14000, and L = Rs. 17500.

  2. 40% of P = 9000 × 40/100 = Rs. 3600.

  3. 30% of ST = 14000 × 30/100 = Rs. 4200.

  4. 30% of L = 17500 × 30/100 = Rs. 5250.

  5. Sum the three weighted values: 3600 + 4200 + 5250 = Rs. 13050 per m3.

Rs. 13,050 is not equal to Rs. 8121, Rs. 7211, or Rs. 7219 — the three numeric values offered — so by elimination none of them can be correct. As a check on the size of the answer: since L (the costliest wood in 1993) carries only a 30% weight while P (the cheapest) carries 40%, the weighted average should sit well below L's Rs. 17500 and above P's Rs. 9000, and Rs. 13,050 fits that range.

Hence the average realization per m3 in 1993 is Rs. 13,050, so the answer is 'None of these'.

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