HomeQuantitative TechniquesHow to Solve Line Graph Questions for CLAT 2021

# How to Solve Line Graph Questions for CLAT 2021

How to Solve Line Graph Questions for CLAT 2020

How to Solve Line Graph Questions for CLAT 2020

Line Graph​​ (also known as Line chart)​​ is used to represent data of time series​​ i.e., chronological order.​​ In simpler language, it is used to show changes in data over a certain period. This is the​​ simplest​​ form of​​ the​​ graph as the changes in the data is more visible and comparable.

Normally, time is represented along X-axis while a dependent variable that changes with time is represented on Y-axis. Note: There can be more than one dependent variable in one Line graph.

Tips to solve problems based on the Line Graph:

• As the Paper will be offline on the graph is the data scales are not given you must first draw the horizontal lines different peak points of the graph.​​

• Read the whole question and answer part of data at once while deducing the chart as there might be questions that you can directly answer with just a glance over the graph.

• Usually, the data will ask for the comparison of one time period data with another hence read carefully which​​ time-period has to​​ be compared with what base time-period and then calculate.

• Time-Period doesn’t mean that the data given is compared on yearly data, it can half-yearly, quarterly, monthly, weekly, daily.

• There is no scope of assumption in this graph you need to solve with what is given in the graph.​​

• Try​​ to avoid long calculations by using​​ short cuts techniques to get the right answer.

Example:​​ Profit​​ of banks over​​ the​​ years is depicted in the given graph. Read the graph carefully and answer the questions based on the given data only.​​

Deductions from the graph:

• If the questions are calculation based than its better to write down the approximate values at the data points or peak of line.

• The graph​​ has dipped​​ only two times in 8 years i.e., in 2013 and 2019. /if​​ the​​ question is asked regarding decrease or negative profits then these two years has to be considered.

• As the numbers on the data points are not given we will approximate the values for the data points.

• Note that the red observation in table doesn’t mean it is loss it’s just less profit compared to previous year profit.

Profits over​​ the​​ years according to the graph:

 Year Profit(in crore) 2012 1350 2013 1000 2014 1600 2015 2000 2016 2550 2017 3400 2018 4200 2019 1750

Question 1: What is the net Change in Profit from 2012 to 2019?

Solution:​​ Profit of 2019 = 1750 Cr

​​ ​​ ​​ ​​​​ Profit of 2012 = 1350 Cr​​

Net Profit​​ = Profit of 2019 – Profit of 2012 = 1750- 1350 Cr =​​ 400 Cr

Note:​​ Net Profit is different from Change​​ in profit​​ over the years.

In net profit,​​ you have to answer the question in absolute numbers while in​​ the​​ change​​ in profit​​ over the years the answer is in percentages usually.​​ ​​

Question 2:​​ What is the percentage change in the Profit of banks from 2018 to 2019?

Solution:​​ Here in question percentage change is asked hence we will follow our usual method where numerator will have net profit change while denominator will have the profit of the base year.

Net Profit Change= 1750-4200 = -2450

Percentage Change= -2450 * 100​​ / (4200) = -58.33%

As the change in percentage is negative we know it is decrease in profit.

Also, the net change was declined that too is a sign of decrease hence answer will be marked decrease or (–ve) profit​​ or loss of 58.33%.

Question 3: In which year the percentage change in profit is highest?

Solution:​​

 Year % change in Profit 2012 - 2013 -26% 2014 60% 2015 25% 2016 28% 2017 33% 2018 24% 2019 -58%

The calculation is to be done similarly as in the previous question.

As the highest percentage is asked hence 60% change will be considered; i.e., 2014 will be the answer.

Note: “Percentage change in profit doesn’t only mean +ve profit it can be highest in percentage too; language interpretation can confuse you here hence be careful where language interpretation is involved.

For example: If the question asked in which year the banks saw the highest percentage increase in profit then you would​​ definitely​​ go with only +ve profit increase percentage.​​

While if question asked in which year the banks saw the highest percentage change overall then highest –ve percentage would be your answer.

If not mentioned overall then usually it is considered to take overall change only.”

Question 4:​​ What is the average Profit of the banks from 2012 to 2019?

Solution:​​ In this question​​ we can​​ directly​​ apply the formula for average​​ i.e., Sum of all observations divided by no. of observations.

Average of Profit = 1350+1000+1600+2000+2550+3400+4200+1750 / 8​​

​​ ​​ ​​ ​​​​ = 17850/8 =​​ 2231.25

Shortcut can be applied if you have options with considerable difference.​​

Shortcut:​​ Adding only first two digit orally in approximation and then dividing it by 8.

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