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Dear Sir,
I would like to know how they calculate market growth (2011-2014)% pa
and ENT divisional growth (2011-2014)% pa. in examiner’s answer.
Also question given from year 2010 to 2013.
Why they take to year 2014.
Could you please explain this question to me ?
Many thanks.
I think the answer should say 2010 – 2013.
The growths are obtained by subtracting 2010 from 2013 figures. Although there are 4 years of figures there are only three periods of growth: 10 – 11, 12 – 12, 12, – 13.
Then find the compound growth over three years by taking the 1/3 root.
So ENT, Restaurants as an example: (62 – 54)/54 = 0.1481
A growth of x(1+g) has been applied so that sales of 1 woulld rise to 11481
(1.1481)^1/3 (ie the third root) = 1.047 = 1+g; g = 4.7%
Far too complicated. I would simply have divided by three to get an estimate of the growth.
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