based on the following information The following graphs shows the revenue (in $ million) of three companies in their initial six years of operations, in an economy which is characterized by a persistent inflation.
In 2010, which could be a valid statement about the revenues (adjusted for inflation) of these three companies?
Solution
We are not aware that which year, out of the given year is 2010. Hence, we can say that the data is insufficient. Therefore, option E is the best suitable answer.
If for example 6 would be 2010, how would we answer the question? Or if more relevant information would be give... how should we answer such questions?
Hi. If the inflation would have been given, you could have found out the revenue adjusted for inflation: If the inflation is x%, the adjusted revenue would have been $$\frac{Revenue}{100+x}\times\ 100$$. Here we cannot use that as neither inflation is given nor the year. Hope this helps.
