AT Kearney mock test question

Question

Hello, I'm having trouble understanding why the answer to this question is C.Hungary, perhaps I am understanding the question wrong, could you please explain the rationale?

Q 3.2.2: What was the country with the highest relative increase between 2007 and 2008?

Answer choices:

A. Poland / B. Czech Republic / C. Hungary / D. Bulgaria / E. Cannot answer

I thought the answer was B.Czech Republic because from 2007 to 2008, the increase in percentage point was the largest (10.7 - 8.7 = 2.0%).

Answer 1

Hello Joo,

Please notice that when you talk about "relative increase" you have to divide the delta (new value - old value) by the original value.

For example, in the case of the Czech Republic:

( 2008UR - 2007UR ) / 2007UR = (10.7% - 8.7%) / 8.7% = 23%

Anyway you are right, the correct answer is B because for Hungary you have:

(11% - 9.7%) / 9.7% = 13%

Hope it helps,
Luca

Answer 2

Hello!

You are falling into a classical trap -don´t worry, it´s super normal, particularly when you look at the graph!

If we were taking only about growth, the winner would be clearly Czech Rep -it can be easily seen in the pic, it´s the one whose slope is steepest-.

However, the trick is that they are asking for RELATIVE increase, so you have to divide the delta (new value - old value) by the original value.

Czech Republic: ( 2008UR - 2007UR ) / 2007UR = (10.7% - 8.7%) / 8.7% = 23%
Hungary: (11% - 9.7%) / 9.7% = 13%

Hope it helps!

Cheers,

Clara

Answer 3

Hi,
I confirm it's an error, but it's crucial that you fix this formula well explained by Luca for your case resolutions.

Best,
Antonello

Answer 4

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Answer 5

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