CAT 2007 Question Paper Question 45

Instructions

DIRECTIONS for the following four questions:

The Table I shows the comparative costs, in US Dollars, of major surgeries in USA and a select few Asian countries.

The equivalent of US Dollar in the local currencies is given in Table II.

A consulting firm found that the quality of the health services were not the same in all the countries above. A poor quality of a surgery may have significant repercussions in future, resulting in more cost in correcting mistakes. The cost of poor quality of surgery is given in Table III

Question 45

The rupee value increases to Rs.35 for a US Dollar, and all other things including quality, remain the same. What is the approximate difference in cost, in US Dollars, between Singapore and India for a Spinal Fusion, taking this change into account?

Solution

Cost for operation in India is around = 5500*41.

After Rupee value increases, increased cost in USD = 5500*41/35 which is arount 6500 USD.

Thus the requires difference in price is 9000(for singapore) - 6500 = 2500 USD.

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Comments

Shambhavi Singh

1 year, 8 months ago

If rupees is it increasing how then why 41 is divides by 35

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