Maths : Data Interpretation

Q 15 / 46

UPSC CSE Prelims 2018

The following table gives the GDP growth rate and Tele-density data of different States of a country in a particular year. Study the table and answer the question:

States Per capita income
($) 		GDP growth rate
(%)		 Tele-density
State 1 704 9.52 70.27
State 2 419 5.31 35.88
State 3 254 10.83 50.07
State 4 545 9.78 5.94
State 5 891 10.8 76.12
State 6 1077 11.69 77.5
State 7 900 8.88 104.86
State 8 395 5.92 6
State 9 720 7.76 82.25
State 10 893 9.55 96.7
State 11 363 4.7 57.7
State 12 966 7.85 63.8
State 13 495 9.37 52.3
State 14 864 5.46 97.9
State 15 497 7.48 62.3
State 16 777 7.03 93.8
State 17 335 5.8 49.9
State 18 599 7.49 47.84

With reference to the above table, which of the following is/are the most logical and rational inference/inference that can be made?

  1. Higher per capita income is generally associated with higher Tele-density.
  2. Higher GDP growth rate always ensures higher per capita income.
  3. Higher GDP growth rate does not necessarily ensure higher Tele-density.

Select the correct answer using the code given below.

EXPLANATION

Correct Option (D)

Statement 3 is correct: "Higher GDP growth rate does not necessarily ensure higher Tele-density."

  • Analysis of the provided data indicates that a high GDP growth rate does not consistently translate into a high Tele-density.
  • For instance, State 4 exhibits a GDP growth rate of 9.78%, which is relatively high, yet its Tele-density is remarkably low at 5.94.
  • Similarly, State 3 has a GDP growth rate of 10.83%, but its Tele-density stands at 50.07, which is moderate and not indicative of a direct correlation with its high growth rate when compared to states with higher Tele-density.
  • These examples demonstrate that a high GDP growth rate is not a sufficient condition to ensure a high Tele-density.

Incorrect Options:

Statement 1 is incorrect: "Higher per capita income is generally associated with higher Tele-density."

  • While a general trend might appear to exist, the presence of significant exceptions disproves the claim of a general association.
  • For example, State 4 has a per capita income of $545, which is higher than State 3 ($254) and State 17 ($335). However, State 4's Tele-density is only 5.94, whereas State 3 and State 17 have Tele-densities of 50.07 and 49.9 respectively.
  • Another case is State 8, with a per capita income of $395 and a Tele-density of 6. These instances demonstrate that higher per capita income is not consistently or generally associated with higher Tele-density across all states in the dataset.

Statement 2 is incorrect: "Higher GDP growth rate always ensures higher per capita income."

  • The assertion that a higher GDP growth rate "always ensures" higher per capita income is a strong claim that can be invalidated by a single counter-example.
  • Consider State 3, which records a high GDP growth rate of 10.83% but possesses a very low per capita income of $254.
  • Conversely, State 14 has a lower GDP growth rate of 5.46% but a significantly higher per capita income of $864.
  • This comparison clearly illustrates that a higher GDP growth rate does not invariably guarantee a higher per capita income.