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Interpreting Data, SM-Bank 002

This graph shows a company's profits over a 4 year period.
 

  1. What were the company's total profits during this period?  (1 mark)
  2. What was the average yearly profit?  (1 mark)
  3. What percentage of total profit was made in the first year? Give your answer to 1 decimal place.  (2 mark)
  4. Explain how this graph could be misleading.  (2 marks)
Show Answers Only

a.    \($135\ 000\)

b.    \($33\ 750\)

c.    \(22.2\%\)

d.    \(\text{See worked solution}\)

Show Worked Solution
a.    \(\text{Total Profit}\) \(=30\ 000+2\times 40\ 000+25\ 000\)
    \(=$135\ 000\)

 

b.    \(\text{Average Profit}\) \(=\dfrac{$135\ 000}{4}\)
    \(=$33\ 750\)

 

c.    \(\text{Percentage Profit}\) \(=\dfrac{30\ 000}{135\ 000}\times 100\%\)
    \(=22.222\dots\%\)
    \(\approx 22.2\%\ \text{(1 d.p.)}\)

 
d.    \(\text{The vertical axis does not start at zero and could}\)

\(\text{give the impression that the years 2 and 3 profits are}\)

\(\text{twice as large as year 1, and 4 times as large as year 4.}\)