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10 Oct 2024, 17:00
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Dropdown 1: exponential
Dropdown 2: true
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
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Question Stats:
58% (02:08) correct
42%
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wrong
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The attached chart shows data for 5 leading U.S. technology companies, labeled A through E. The size of each circle indicates the overall market capitalization of that company last year and is shown numerically beside each letter in billions of U.S. dollars. The position of each circle’s center relative to the vertical axis shows the revenue in billions of U.S dollars last year and the position relative to the horizontal axis shows the number of years as a publicly traded company.
For each of the following, use the drop-down menu to create the most accurate statement on the basis of the chart:
1. Excluding company E, the relationship shown in the graph between years as a public company and both revenue and market capitalization would best be described as .
2. For the five companies shown in the graph, it was last year that their relative ranking in market capitalization was the same as their relative ranking in revenue.
Attachment:
MarketCapitalization.jpg [ 16 KiB | Viewed 10642 times ]
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Dropdown 1: exponential
Dropdown 2: true
11 Oct 2024, 17:00
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1. We need to find the best option to create an accurate statement.
2. Excluding company E, the relationship shown in the graph between years as a public company and both revenue and market capitalization would best be described as _____. Each circle (apart from E) is separated by about 8 years as a public company - this is linear. At the same time, the revenue is increasing exponentially. So, the relationship will be exponential.
3. For the five companies shown in the graph, it was _____ last year that their relative ranking in market capitalization was the same as their relative ranking in revenue. Their ranking in market capitalization is based on the size of the circle, which means we have (from lowest to largest): E, B, D, A, and C. Now their relative ranking in revenue is based on their projection on the y-axis, which means we have (from lowest to largest): E, B, D, A, and C. So it was true that the rankings are the same.
2. Excluding company E, the relationship shown in the graph between years as a public company and both revenue and market capitalization would best be described as _____. Each circle (apart from E) is separated by about 8 years as a public company - this is linear. At the same time, the revenue is increasing exponentially. So, the relationship will be exponential.
3. For the five companies shown in the graph, it was _____ last year that their relative ranking in market capitalization was the same as their relative ranking in revenue. Their ranking in market capitalization is based on the size of the circle, which means we have (from lowest to largest): E, B, D, A, and C. Now their relative ranking in revenue is based on their projection on the y-axis, which means we have (from lowest to largest): E, B, D, A, and C. So it was true that the rankings are the same.
21 Oct 2024, 20:32
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Why is it exponential? for every 20-30 in revenue its +100 in market cap but I don't see exponential relationship as they don't multiply over time.
Can you help me? Thanks!
Can you help me? Thanks!
