Chart Questions Answer Key Case 1: The Chemistry of Employee Enthusiasm 1.1: 3,827 respondents from North America Net Promoter Score in North America: - 3% Net Promoter Score in Europe: - 34% ‘The overall Net Promoter Score is - 11%, roughly 1/4 way from -3% to -34%. Therefore, roughly 3/4 of the total weight is from North America. Take 3/4 times the total 5,102 respondents; we can estimate that there are 3,827 respondents from North America. 12: 58 19% of European respondents gave an average rating of ~9.5 (average of 9-10 range), 53% of European respondents gave an average rating of ~3.5 (average of 1-6 range). ‘The rest (28%) of European respondents gave an average rating of ~7.5 (average of 7-8 range). ‘Taking the weighted average of the three groups, we get an overall average European rating of 58. 1.3: 28 percent points 28% of European respondents gave a passive rating (7-8). If this group is moved into the promote group, the Net Europe Promoter Score will increase by 28%. (Net Promoter Score = % Promoter - % Detractor) PLEASE GO ON TO THE NEXT PAGE 45Chart Questions Case 2: Aircraft manufacturing cost structure 2d: 81.05% According to the assumptions, the world’s new material cost would be 50 * 0.90 = 45 and the new labor cost in low-cost countries would be 10 * 1.2 = 12. ‘Thus, the new total cost in high-cost countries = 100 — 5 = 95 and the new total cost in low-cost countries = 80-5 +2=77 So, the new total cost in low-cost countries = (77/95) = 81.05% the new total cost in high-cost countries. 22: 96 Let X be the number of low-cost countries in the world, so (200-X) is the number of high-cost countries. We have the equation: [10 * X +35 * (200 —X)] / 200 = 23 ¢ 10X -35X + 7000 = 4600 «© 25X = 2400 & X = 96 So, there are 96 low-cost countries in the world. 23: 833 Let X be the number of low-cost countries in the survey, so (180 —X) high-cost countries in the surveys. We have: X = 125% * (180 — X) Solving this equation, we get X = 100. So, there were 100 low-cost countries and 80 high-cost countries in the survey The world’s average aircraft manufacturing cost then equals: (100 * 70 + 80 * 100) / 180 = 83.3 PLEASE GO ON TO THE NEXT PAGE 46Chart Questions Case 3: The Era of Digital Health BL: 27.6% (9,400 — 6,800) / 9.400 = 27.6% 3.2: 19.7% {(1.2M * 9,400) - (30% *1.2M * 6,800) + (21% * 1.2M * 7,100) + (37% * 1.2M * 7,800) + (12% * 1.2M * 9,400)]} / (1.2M * 9,400) = 19.7% 3. 2,223 The goal is to increase the savings percentage by 5 percentage points, which means 24.7%, Let X be the average annual healthcare cost per capita of people with access to management of high- cost patient efficiency level, we have: {(.2M * 9,400) - [(30% *1.2M * 6,800) + (21% * 1.2M * X) + (37% * 1.2M * 7,800) + (12% * 1.2M * 9,400)]} / (1.2M * 9,400) = 24.7% Solving this equation, we get X ~ 4,877. So the management of high-cost patient efficiency level has to reduce (7,100 ~ 4,877) = 2,223 more. PLEASE GO ON TO THE 47Chart Questions Case 4: Mobile-money Perception Ladder 41: 2,250,000 90 million x 2.5% = 2,250,000 42: 17.6% 14% / 44% / 41% = 77.6% 43: 333% ‘The current number of people considering mobile-money is 27% x 90 million = 24.3 million. ‘The growth rate is (32.4 — 24.3) / 24.3 x 100% = 3: Case 5: BRIC Truck Markets Sil: 45% points (2,251 / 3,552) x 100% - (785 / 4,298) x 100% = 45% (points) 52: 152.36% (2,998 — 1,188) / 1,188 x 100% = 152.36% 5.3: 14% by market growth; 86% by segment growth ‘The rise in quantity of the Midmarket segment between 2010 and 2020: 2,998 — 1,188 = 1,810 (thousand trucks) If the segment share is the same in 2010 and 2020, the rise in the number of trucks will only be resulted from market growth (from a total of 3,552 to 4,298 thousand trucks). That rise is: PLEASE GO ON TO THE PAGE 48Chart Questions [1,188 x (4,298/3,552)] — 1,188 = 250 (thousand trucks) So 250 / 1,810 = 14% of the total rise is caused by market growth and the remaining 86% is caused by segment growth. * TCO & quality in 2010 < Engine power in 2020 © Attractive styling in 2010 < Driver comfort in 2020 © Service coverage in 2010 > Safety features in 2020 ‘The total points of importance level in 2010 is 5 +1+241+1+1+341=15 The relative important level (or criteria weight) for criteria asked on the question is: * TCO & quality: 2/15 = 13% © Attractive styling: 1/15 =7% + Service coverage: 3/15 =20% Doing the same calculation for 2020 we get: ‘+ Engine power: 4/28 = 14% © Driver comfort: 3/28 = 11% © Safety features: 4/28 = 14% 55: Toyota Tacoma in 2010; Cadillac Escalade in 2020 This is a very good example of how candidates may not go through the traditional approach. The ‘computation in this question is not hard but very time consuming. Before touching on that “time consuming” computation, let's discuss how I (a former consultant) would respond if I got this, question on a case interview. “According to the 80-20 principle, we should spend our efforts on things that take little work but have high impacts. For this question, I would like to first provide a quick hypothesis based on a quick observation of the data. After that we may discuss whether or not we should go into the lengthy calculations to confirm my hypothesis. Is this approach ok to you"? 99% of case interviewers would love to hear this and 90% of them will let you show that “quick estimation” as following. PLEASE GO ON TO THE NEXT PAGE 49Chart Questions “I see a trend on Exhibit 5 that people's preferences are shifting away from cheap pricing. So my quick hypothesis is that the Toyota Tacoma, a low-cost truck with an average score on most other features, would be preferred in 2010, In 2020, people’s preferences would shift toward the Cadillac Escalade, a premium truck with outstanding scores on most other features At this point, if the interviewer is already satisfied, that’s great. You save yourself some valuable time for solving the case, not running the risk of doing wrong calculations and still score great on the evaluation sheet. In rare situations where the interviewer still wants to see the calculation, refer to the table below for the answer key. Purchase Engine TCO Technical Driver Safety Service Attractive Price Power quality innovation comfort features Coverage sting 2010 Importance level 3 7 z z 7 7 z 7 aooerteria weight oe ask ome orm arm OO 2120 Importance level map teria weight Tom asks ao TopeaTincriomer —g ‘ > ‘ ‘ : : ‘ Cadillac Escatade 3 : : , : : ‘ : fustomer ating People preference for : a a a a ec oe People preference for een 08 «081M Esto atk et | cso Peapiepreferencefor | sop oss ago, oa?ss ass a0 st | a0 Cadilae Escalade in 2000 ‘ People preference for Peoplepreferencefor 032 e287, 0G ats ass | ak PLEASE GO ON TO THE N. 50Chart Questions Case 6: China Online User 6.1: 800 millions 72 jon / 89% = 800 (millions Internet users) 62: 18% ‘The number of Internet users in 2010 is 394 million / 82% = 480.49 million ‘The number of Internet users in 2011 is 465 million / 84% = 553.57 million ‘The growth rate of the number of Internet users in 2011 is (553.57 — 480.49) / 480.49 x 100% = 15% 63: No Because the number of online video users as % of Internet users (Penetration) has been continuously increasing. PLEASE GO ON TO THE NEXT PAGE 51Chart Questions Case 7: European Mobile Phone Usage TA: 7,035 355 %o x 20,101 = 7,035 7.2: Mobile omnivores — Data entertainers — Data practic Regarding voice sage per user: ‘Traditionalists: 46% / 65% = 71% Data practicals: 9% / 12% = 75% Data entertainers: 10% / 13% = 77% Mobile omnivores: 35% / 10% = 350% 7.3: Mobile omnivores — Data practicals — Data entertainers - Traditional Regarding data usage by time per user: Traditionalists: 7% / 65% = 11% Data practicals: 17% / 12% = 142% Data entertainers: 13% / 13% = 100% Mobile omnivores: 63% / 10% = 630% 7.4: Mobile omnivores — Data entertainers — Data practicals - Traditionalists, Regarding data usage by MB per user: Traditionalists: 5% / 65% = 8% Data practicals: 8% / 12% = 67% Data entertainers: 25% / 13% = 192% Mobile omnivores: 61% / 10% = 610% PLEASE GO ON TO THE NEXT PAGE 52Chart Questions Case 8: Future Growth in Chinese Consumption 81: $5311 In 2012, the number of Chinese people taking part in the survey was 15M x 65% = 9.75M Of 9.75M Chinese people taking part in the survey, there were 9.75M x (13 + 15) %=2.73M MACs Tn average, each MAC spent [25B x (25+33) %] /2.73M = 5,311 USD in 2012 82: 97.7% ‘The value of consumption generated by MACs in 2012 = 25B * 58% = 14.5B The value of consumption generated by MACs in 2020 = 48B * 77% = 37B, ‘The increase in value of consumption generated by MACS from 2012 to 2020 = 37B - 14,5B = 22.5B ‘Thus, the increase in value of consumption generated by MACs takes up 22.5B / (48B - 25B) ~ 97.8% of the total increase in value of total consumption. 83: 2.2% ‘The number of surveyed people within the age group of 35-44 was (15M x 65%) x 35% = 3.4M, ‘of which half (1.7M) were from big cities and the other half from small cities, In this group, the number of people saying that their spending will increase or stay the same in 2012 and 2013 wa In 2013: (1.7M x 68%) + (1.7M x 64%) = 2,252,250 people In 2012: [1.7M x (68% - 4%)] + [1.7M x (64% + 7%)] = 2,303,438 people So the number was decreased by (2,303,438 - 2,252,250) / 2, 7.5 x 100% = 2.22% PLEASE GO ON TO THE NEXT PAGEChart Questions 8.4:D ‘Ais unproven because the number of urban population and the value or urban consumption of each city type in 2012 and 2010 are unknown, so the statement cannot be concluded. B is unproven because only the percentage of non MACs in the total urban population in 2012 and 2020 were revealed, we cannot conclude anything about the number of non MACs without data about total urban population in these years. C is unproven. The percentage changes from 2012 to 2013 of 18-34 people with stable or increasing spending are 1% (decrease) and 7% (increase) in big and small cities does not mean that the percentage change of the whole group is positive. It depends on the number of surveyed people within this age group in each city type. Dis proven TRUE because the percentage of people saying that their spending will increase or stay the same is always bigger than that of people saying that their spending will decrease in all ‘group age and in both city type. Read more on this concept at: http://www.mconsultingprep.com/problem-solving-test/how-to- prepare/fact-based-conclusion/ PLEASE GO ON TO THE N. 34Chart Questions Case 9: Future Growth in Chinese Consumption 91: 56% Annual ASAIP in 2009 (indexed to 2005): (190 + 105 + 98 + 94)/4 = 121.75 (Smillions) ASAP in the first quartile of 2009 is higher than the annual ASAIP in 2009 by (190 - 121.75) / 121.75 x 100% = 56.1% 92: 58% Annual ASAIP in 2006 (indexed to 2005): (110 + 101 + 100 + 99)/4 = 102.5 Annual ASAIP in 2007 (indexed to 2005): (130 + 104 + 99 + 98)/4 = 107.75 IfX is the number of infrastructure projects in 2006, 1.5X will be the number of infrastructure projects in 2007. ‘The growth rate can be estimated by this equation: (LSX * 107.75 — X * 102.5) /X * 102.5 = (1.5 * 107.75 — 102.5) / 102.5 = $7.7% 278% The real ASAIP in the first quartile of 2014: 160 x (240 / 100) = $384 million The total value of all refinery projects: 50 x 30% x 115 = $1,725 million The total value of all remaining projects: (384 x 50 — 1,725) = $17,475 million If we want to inerease the total value of all infrastructure projects in the first quartile of 2014 by 25%, it would be: 384 x 50 x 1.25 = $24,000 mil nm ‘The new average size of each refinery project: (24,000 — 17,475) / 15 = $435 million So the value of each r \ery project needs to grow by: (435 — 115) / 115 = 278,26% PLEASE GO ON TO THE NEXT PAGE 35Chart Questions Case 10: Future Growth in Chinese Consumption 10.1: 1,235 Number of people who own 1 device only: 18% x 13,200 = 2,376 (people) Number of desktops currently owned by this group: 2,376 x 52% = 1,235, 10.2: 1,757 Number of people expecting to own 3-5 devices in 3 years: 53% x 13,200 = 6,996 Number of people choosing 3 devices: 6,996 x 30% = 2,099 Number of people choosing 5 devices: 6,996 x 18% = 1,259 Number of people choosing 4 devices: 6,996 — 2,099 — 1,259 = 3,638 Number of smart phones owned by this group in 3 years: 29% x 2,099 + 25% x 3,638 + 19% x 1,259 = 1,757 10.3: Offline media: €1,249; Online media: €1,717 We see that the average ratio of prices paid on offline media to prices paid for online media is, 188 / 58 = 94/29, Of the total spending on media of €350, this consumer spends € [350 / (94 + 29)] x 94 = €267.5 on offline media and €82.5 on online media. Best estimate of his perceived value for offline media: (€267.5 / €188) x €878 = €1,249 Best estimate of his perceived value for online media: (€82.5 / €58) x €1,207 = €1,717 PLEASE GO ON TO THE NEXT PAGE 56Chart Questions Case 11: Landed cost of LNG Ld: 14% 17/12 x 100% = 14.17% 112: From 7.4 % to 10.9% If policy makers take no action, the maximum realistic unit landed cost = 12 - 0. higher than the average unit landed cost in Canada which is 9.2~9.5, by [(10.2 — 9.5) / 7.37% to [(10.2 - 9.2) / 9.2] = 10.87%, Case 12: Indian Banking Market 121: ~500% Attackers’ assets in 2000 = 1,1 100 x 12% = 135,960 Rs crore Attackers’ assets in 2007 = 3,384,000 x 26% = 879,840 Rs crore 1e growth rate of Attacker’s assets from 2000 to 2007 = (879,840 — 135,960) / 135,960 x 100% =547% 12.2: 7.07% ROE = Profits / Equity We have Profits of Incumbents in 2007 ~ 31,230 x 68% ~ 21,2364 Rs crore ROE = 12%, thus Equity of Attackers in 2007 = 21,236.4 / 12% = 176,970 Rs crore Incumbents’ share of assets in 2007 = 3,384,000 x 74% = 2,504,160 Rs crore So, of total assets, equity accounted for 176,970 / 2,504,160 = 7.07% PLEASE GO ON TO THE NEXT PAGE 7Chart Questions 123: 46% For Attackers in 2007, we have market cap = 298,849 x 49% = 146,436 Rs Crore P/E = 27, thus total Earnings of all shares = 146,436 / 27 = 5,423.6 Rs crore Of total Profits, total Eamings accounted for 5,423.6 / (31,230 x 32%) = 54.27% us, the remaining portion of total Profits not covered as Earnings = 100% - 54.27% = 45.73% Case 13: Countries Priorities Ranking From information provided in the case: there were 2600 people participating in the survey, of which: From factor-driven countries: 2600 / 4 = 650 respondents From efficiency-driven countries: (2600-650) / respondents are from innovation-driven countries 175 respondents and the remaining 975 13.1: Innovation-driven countries ‘The number of respondents ranking Employment 1" and 2" in each country type is: Factor-driven countries: 650 x 31% = 202 Efficiency-driven countries: 975 x 34% = 332 Innovation-driven countries: 975 x 38% = 371 13.2: 770 ‘The total number of respondents ranking Social as 1" and 2" is (0 + 975 x 44% + 975 770 PLEASE GO ON TO THE NEXT PAGE 58Chart Questions If there were 350 respondents from Efficiency-driven countries ranking Downstream 1" and 2", the number of respondents from those countries would be 350/7% = 5000 ‘Thus, the number of total respondents of the survey is (5000 x2) / 0.75 = 13,333 Case 14: The US as one of the Developed World’s Lowest-cost Manufacturers 14.1: 95% ‘The average cost index in other countries = (116 + 116 + 118 + 108 + 110+ 95) /6 = 110. (110.5 ~ 100) / 110.5 =~ 9.5% ‘Thus, the cost in the US is 9.5% lower than the average cost in other countries. 142: 58% (30-19) / 19 x 100% = 57.9% 143: 168.26 Euro ‘The average cost of a unit of manufacturing (in USD) in France = 210 / 110 x 116 = 221.45 USD The average cost of unit of manufacturing (in Euro) in France = 221.45 / 1.34 = 165.26 Euro PLEASE GO ON TO THE NEXT PAGE 59Chart Questions Case 15: Innovative Companies 15.1: Industrial products and processes Number of Technology and telecom companies in 2012 list: 12+ 3 = 15 Number of Technology and telecom companies in 2010 list: 12 +9 = 21 Difference in the number of Technology and telecom companies between the two lists: 6 Number of Industrial products and processes companies in 2012 lis Number of Industrial products and processes compani Difference in the number of Industrial products and processes companies between the two lists: 7 Repeat this process for all other industries, the greatest difference is in the Industrial products and processes. 15.2: Energy and environment Technology and telecom: 3 / (12 +0 +3) = 20% Industrial produets and processes: 3 / (3 +4 +3) =30% Energy and environment: 1 / (0 +1 +1) = 50% Repeat this process for all other industries, the greatest percentage is found in the Energy and environment industry 15.3: Automotive No.l: Technology and telecom: 12 +9 = 21 No.2: Consumer and retail: 9 +1 = 10 No.3: Automotive: 5+ 3=8 PLEASE GO ON TO THE NEXT PAGE 60Chart Questions Case 16: Emerging-market cities 16.1: 3,561 million people When you get a “precise” question in a chart where number and grids are not clearly labeled, your answer will be much stronger if you can provide a work-around to find the exact answer. In this particular question, the precise answer can be found using the following method: «From the text in the chart, we know there are 3,900 million people from emerging- market cities in 2030. ‘© Divide this number by the share of world population (3,900 million / 46%) we get the world population of 8,478 million people in 2030. ‘©All rural areas’ share of world population in 2030 is 42% (100% - 12% - 46%). ‘© Multiply this 42% by the world population of 8,478 million, we get 3,561 million people living in all rural areas in 2030. 16.2: 22% Using the same method in 16.1, we can calculate the population of different segments in 2010 and 2030 as follows: 2010 2030 All rural areas 3,514 million 3,561 million Emerging-market cities 2,600 million 3,900 million Total population outside a a develaped-market cities 6,114 million 7,461 million ‘The growth rate is 22%. 163: ~10% When you get an “approximate” question in case interview, the interviewer is interested in getting a short-cut method from you. In these situations, the final answer is just as important as a smart short-cut In this particular question, a possible short-cut is as follows: PLEASE GO ON TO THE NEXT PAGE 6Chart Questions Developed-market cities’ Share of world population is 12% in both 2030 and 2050. This means the world population will grow at the same rate with developed-market cities’ population. So the world population will grow by approximately at the overall rate of ~ 10%. (The developed-market cities’ population grows at the rate of ~ 10% during 2010-2030 and we can sve from the Exhibit 16 that will grow at the same rate during 2030-2050) Case 17: Australia International Education ITA: ~40% When the word “approximately” is used, a quick answer is preferred to an exact result. So we can and should use some estimation. In 2009, Australia shares ~ 1/3 of total Aus + UK commencements (middle chart). This means the number of commencements in the UK in 2009 is twice that of Aus. In 2009, the US shares ~1/2 of total US + UK commencements (right-hand chart). This means the number of commencements in the US in 2009 is equal to that of the UK. Combining the two pieces of data, we can infer that the UK shares 2/5, or 40%, of the total HE ‘commencement in three countries in 2009. 17.2: 2009: US > Aus > UK 2011: Aus > IS>UK 173: Australia: $30 thousand * 95% = $28.5 thousand ‘The UK: $30 thousand / 120% = $25 thousand 174: 20% Number of commencements in Australia in 2009: X X / 34% = Number of commencements in Aus + the US in 2009 = 194 thousand + X Solve for X we get 100 thousand PLEASE GO ON TO THE NEXT PAGE 0Chart Questions Number of commencements in Austr 2011: ¥ X / 28% = Number of commencements in Aus + the UK in 2011 = 308.5 thousand + Y Solve for Y we get 120 thousand So the number of commencements in Australia has grown by 20% between 2009 and 2011. Case 18: Study Abroad 18.1: 66% ‘Total number of international higher education students (IHES) in the US: 3 m * 23% = 690 thousand ‘Number of IHE: in the US from China: 0.5 m * 24% = 120 thousand in the US from India: 0.2 m * 52% = 104 thousand ‘Number of IHES in the US from “Other Asia”: 0.9 m * 26% = 234 thousand Total IHES in the US from Asia: (120 + 104 + 234) = 458 thousand, 66% of the total 690 thousand 18.2: FALSE ‘Total IHES in France: 3 m * 8% = 240 thousand Number of IHES in France from Africa: 0.3 m * 31% = 93 thousand < half of 240 thousand 183: 103% Increasing number of foreign students in Australia in the next 3 years: 3 mil x 15% x 8% = 36 thousand, of which 7.2 thousand (one fifth) are from China, ‘The current number of Chinese international higher education students in Australia: 0.5m x 14% = 70 thousand, ‘Thus the percentage by which the number of Chinese international higher education students in 2/70 = 10.3% Australia will increase in the next 3 years = PLEASE GO ON TO THE NEXT PAGEChart Questions Case 19: Chinese Internet Users 19.1: 38.5% ‘The number of urban residents (above the age of 6) in 2011 = 377 / 55% = 685 (million) The number of rural residents (above the age of 6) in 2011 = 136 / 21% = 648 (million) So, the nation’s overall penetration rate of Internet users in 2011 = (377+ 136) / (685 + 648) ~ 38.5% Please be careful that even though 38.5% (our given solution) is very close to (55% + 21%) /2= 38%, 38% is not the correct solution. The answer is close just because this is a special case where the number of urban residents is close to that of rural residents. 192: 86 million China’s total population of teenagers and university students in 2011 = (45 / 87%) + (34/99%) = 86 (millions) 193: 118.5 million ‘The projected number of middle-aged Internet users in 2013 = (44 x 1.15 x 1.15) + (58x 1.02x 1,02) = 118.5 (millions) 19.4: 1,558 million ‘The number of Chinese Internet users in 2014 = (377 x 1.07°) + (136 x 1.115) = 647.8 (million) 1 projected Chinese’s population in 2014 = 647.8 / 42% = 1,542 (million) PLEASE GO ON TO THE NEXT PAGE 64Chart Questions Case 20: Indian Consumers Are Getting Digitally Influenced 20.1: 164% 3.3% by national population growth; 96.7% by population with Internet access segment’s growth Growth rate: (330 — 125) / 125 = 164% ‘The increasing number of population with Intemet access: 330 — 125 = 205 (million) ‘The increasing number of population in 2016 that will result from the national population growth: [125 x (1,275/1,210)] ~ 125 = 6.7 (million) So 6.7 / 205 = 3.3% is caused by the national population growth and the remaining 96.7% is caused by population with Internet access segment’s growth, 20.2: 30% (650b / 200m — 225b / 90m) / (225b / 90m) x 100% = 30% 203: $2,828 Average spending per consumer with Intemet access (rural and urban) in 2012: (225 + 55) b 125m = 2,240 (USD) Average spending per consumer with Intemet access (rural and urban) in 2016: 2,240 * 1.06'= 2,828 (USD) Case 21: Potential Growth of Truck Sales Market in BRIC Region 21.1: €70 billion Average Revenue of Chinese truck sales market in 2017 = 66 * 103%? = 70 (€billion) 21.2: €67,039 PLEASE GO ON TO THE NEXT PAGE 65Chart Questions Average Revenue of Brazilian truck sales market in 2013 = 11 * 103% = 12 (€billion) Average Unit Sales of Brazilian truck sales market in 2013 ~ 169 * 102%*= 179 (thousand) Average price of a truck sold in Brazilian truck sales market in 2013 = €12 billion / 179 thousand = €67,039 Notice: The above answer key is developed to get the closest estimation. However in real case interviews or test environments it might not be the best method to approach this problem due to its time consuming nature. If I were to get this question in a case interview or in my McKinsey PST, I would just use the 2010 numbers as the rough estimate for the 2013 number: €1] billion | 169 thousand 65,000 213: 704 (units) Revenue of the first dominant manufacturer in 2012 = (€3 billion * 48%) * 113%? = €1.84 billion Revenue of the second dominant manufacturer in 2012 = (€3 billion * 41%) * 116%? = €1.66 billion Revenue of other small suppliers in 2012 = (€3 billion * 11%) * 104%? = €0.36 billion ‘Total Revenue of Russian truck sales market in 2012 = €3 billion * 114%? = €3.9 billion Revenue of the new manufacturer in 2012 = 3.9 - 0.36 — 1.84 — 1.66 = €0.04 billion = €40 million Number of trucks sold by the new manufacturer in 2012 = €40 million / €56,850 = 704 (units) PLEASE GO ON TO THE NEXT PAGE 66Chart Questions Case 22: Research and Projections of the World’s Banking Industry in 2015 22.1: 152.85% Number of digital requests in 2010 = 345,600 billion / 40% x 30% = 259,200 billion Number of digital requests in 2015 = 6,620 billion / 1% x 99% ~ 655,380 billion % increase = (655,380 — 259,200) / 259,200 = 152.85% 22.2: 69,295 billion Total number of complaints in 2015 = $97 billion / 20% = 2,985 billion ‘Total number of banking transactions in 2015 = 2,985 billion / 2.8% = 106,607 billion ‘Total number of simple/small ticket transactions = 106,607 billion x 65% = 69,295 billion 22.3: 19.8 million transactions Number of large transactions in 2010 = 12,000 billion / 45% = 26,667 billion Number of total transactions in 2010 = 26,667 billion / 8 x (5 + 8) = 43,334 billion Number of bank branches in the world in 2010 = 460 x 475 = 218,500 (branches) Ina typical branch, FTE workload per branch = 10. This means that a bank branch needs on average 10 full time workers. ‘The average number of banking transactions that a full-time worker proceeded in 2010 = 43,334 billion / (218,500 x 10) = 19.8 million (transactions) PLEASE GO ON TO THE NEXT PAGE orChart Questions Case 23: Medical Travel across the Globe 23.1: 864 thousand Number of people traveling from Asia to North America to have medical treatment in 2013 = 45 million x 32% x 6% = 864,000 23.2: Number of medical travelers from MEA to Asia is 7.74 times greater than that of Europe Number of people traveling from MEA to Asia to have medical treatment in 2013 = 45 million x 15% x 32% + 45 million x 7% x 95% = 5.1525 million Number of people traveling from MEA to Europe to have medical treatment in 2013 = 45 million x 15% x 8% + 45 million x 7% x 4% = 0.666 million Number of medical travelers from MEA to Asia is greater than that of Europe, by (5.1525 / 0,666) = 7.74 times 23.3: 16.98 million ‘Number of Asian medical travelers to other continents in 2013 = 45 million x 32% x 7% = 1 million Number of Asian medical travelers to other continents in 2014 = 1 million x 92% = 0.92 million ‘Total number of the world’s medical travelers in 2014 = 45 million x 114% = 51.3 million | travelers in 2014 = 51.3 million x 35% = 17.9 million Total number of Asian medit Number of medical travelers from Asia to countries within the region in 2014 = 17.9 million — 0.92 million = 16.98 million PLEASE GO ON TO THE NEXT PAGE 68Chart Questions Case 24: Structural Shift of some Asian nations’ economy 24.1: 7,517% ‘Thailand's GDP from the service sector in 1956 = $3.9 billion x 45% = $1.8 billion ‘Thailand's GDP from the service sector in 2010 ~ $318.9 billion x 43% ~ $137.1 billion Growth rate = ($137.1 billion - $1.8 billion) / $1.8 billion = 7,517% 242: Rank from low to high: Philippines - Myanmar - Malaysia — China — Thailand — South Korea - Indonesia Growth rate of the industry sector from 1965 to 2010 of each country: ‘Myanmar: (41.6 x 38% = 2.2 x 13%) / (2.2 x 13%) = 5,427% Indonesia: (709.1 x 47% - 5.1 x 13%) / (5.1 x 13%) = 50,168% ‘Thailand: (318.9 x 45% - 3.9 x 23%) / (3.9 x 23%) = 15,898% Malaysia: (248.2 x 41% - 2.9 x 27%) / (2.9 x 27%) = 12,896% Philippines: (199.6 x 33% - 5.3 x 31%) / (5.3 x 31%) = 3,909% China: (5,930.5 x 47% - 58.6 x 35%) / (58.6 x 35%) = 13,490% South Korea: (834.1 x 39% = 3.4 x 21%) / (3.4 x 21%) = 45,460% 24.3: Agriculture: 10%; Industry: 45.5%; Service: 44.5% Region’s GDP from Agriculture: (41.6 x 44% + 709.1 x 15% + 318.9 x 12% + 248.2 x 10% + 199.6 x 12% + 5,930.5 x 10% + 834.1 x 3%) = 829.8 (USS billion) Region’s GDP from Industry: (41.6 x 38% + 709.1 x 47% + 318.9 x 45% + 248.2 x 41% + 199.6 x 33% + 5,930.5 x 47% + 834.1 x 39%) = 3,772.9 (USS billion) 's GDP from Service: Regi PLEASE GO ON TO THE NEXT PAGE ooChart Questions (41.6 x 18% + 709.1 x 38% + 318.9 x 43% + 248.2 x 49% + 199.6 x 55% + 5,930.5 x 43% + 834.1 x 59%) = 3,687.7 (USS billion) Total GDP of the Region = 829.8 + 3,772.9 + 3,687.7 = 8,290.4 (USS billion) Economic Structure of the Region: Agriculture = 829.8 / 8,290.4 = 10% Industry ~ 3,772.9 / 8,290.4 = 45.5% Service = 3,687.7 / 8,290.4 = 44.5% Case 25: Tourism spending in the UK 25.1: Scotland: 9.63%, London: 24.11%, Wales: 5.3%, NI: 1.86%, Rest of England: 59.1% Total tourism spending in the UK = 10.9 + 66.9 + 27.3 + 6.0 + 2.1 = £113.2 billion % of Scotland = 10.9 / 113.2 = 9.63% % of London = 27.3 / 115.2 = 24.11% % of Wales = 6.0/ 113.2 = 5.3% % of NI=2.1/ 113.2 = 1.86% % of Rest of England = 66.9 / 113.2 = 59.1% 25.2: Scotland: £1.9 billion; London: £12.8 billion; Wales: £0.6 billion, NI: £0.3 million; Rest of England: £8 billion Scotland: £10.9 billion x 18% = £1.9 billion London: £27.3 billion x 47% = £12.8 billion. Wales: £6.0 billion x 10% = £0.6 billion NI: £2.1 billion x 15% = £0.3 billion PLEASE GO ON TO THE NEXT PAGE 70Chart Questions Rest of England: £66.9 billion x 12% = £8.0 billion 253: 20.6% ‘Total international tourism spending in the UK = £1.9 billion + £12.8 billion + £0.6 billion + £0.3 million + £8.0 billion = £23.3 billion % of intemational tourism spending in the total tourism spending in the UK. = £233 billion / £113.2 billion = 20.6% Case 26: Consumer Electronics Industry 26.1: 602 people Number of surveyed consumers who plan to buy a tablet in the next 12 months as a replacement = 6,020 x 10% = 602 people 262: 4,274 Total smartphones owned = 6,020 x 19% x 2 + 6,020 x 29% + 6,020 x 4% = 4,274 263: 8,307 Total number of devices bought by the surveyed consumers as a replacement = 6,020 x (29% + 11% + 10% + 18% + 8% + 11% + 7% + 5% + 6% + 6% + 7% + 8% + TM 5%) = 8,307 Case 27: Employment Structure by Education Level PLEASE GO ON TO THE NEXT PAGE nChart Questions 27.4: 14.56 million ‘Number of workers with a Bachelor's Degree or higher in America in 1973 = 91 million x (9% + 7%) = 14.56 million 272: 256.6% Number of workers at higher educational levels than high school in 2007 = 154 million x (17% + 10% + 21% + 11%) = 90.86 million Number of workers at higher educational levels than high school in 1973 = 91 million x (12% + 9% + 7%) = 25.48 million % increase = (90.86 - 25.48) / 25.48 = 256.6% 273: 18% Number of workers attending some college but with no degree in 2007 = 154 million x 17% = 26.18 million Number of workers attending some college but with no degree in 2010 = 26.18 million x 1.12 = 36.78 million Percentage of this group in the total number of people employed in America in 2010 = 36.78 million / 205 million = 18% PLEASE GO ON TO THE NEXT PAGE nChart Questions Case 28: China: The Age of the Affluent 28.1: 196.67 million Expected number of “veteran” affluent consumers in 2020 = 280 million x 54% = 151.2 million ‘Number of “veteran” affluent consumers in 2011 = 151.2 million / 2.85 = 53.1 million Total number of affluent consumers in 2011 = $3.1 million / 27% = 196.67 million 28.2: 2.58 million Number of affluent consumers who are private-business employees from 25 to 34 years old 25 million / 0.85 = 3.82 million ‘Number of affluent consumers from 25 to 34 years old = 3.82 million / 40% = 9.55 million Number of today’s affluent consumers who are state-owned enterprise employees from 25 to 34 years old = 9.55 million x 27% = 2.58 million 28.3: 25 million Number of today’s affluent consumers who are business owners from 35 to 44 years old. = 58.5 million x 55% = 32.34 million ‘Number of today’s affluent consumers from 35 to 44 years old = 32.34 million / 31% = 104.3 million Number of today’s affluent consumers who are state-owned enterprise employees from 35 to 44 years old = 104.3 million x 24% = 25 million PLEASE GO ON TO THE NEXT PAGEChart Questions Case 29: Travel and Tourism in China 29.1: 1,534.3 RMB 058 million x 1,09? = Number of trips in 2012 = 257 million Market value in 2012 = 1,484 RMB billion x 1.14”= 1,928.6 RMB billion Average market value per travel trip in 2012 = 1,928.6 RMB billion / 1,257 million = 1,534.3 RMB 29.2: 16.2% Market value per an outbound travel trip in 2010 = 321 RMB billion / 37 million = 8,676 RMB Market value per an outbound travel trip in 2020 = 1,544 RMB billion / 101 million = 15,287 RMB % increase = (15,287 - 8,676) / 8,676 16.2% 293: 24.24 million Number of outbound travel trips from China to Japan in 2020 = 101 million x 6% = 6.06 million Projected number of total international travelers arriving in Japan in 2020 = 6.06 million / 25% = 24.24 million PLEASE GO ON TO THE NEXT PAGE 4Chart Questions Case 30: Youth Education in Europe 30.1: 86 003 x 18% x 12% = 86 Number of Italian vocational respondents = 30.2: Lower, by 200 ‘The difference between the number of “high school completion” respondents and that of “some college/associate’s degree or higher” respondents accounts for (27% + 10% - 32%) = 5% of the total number of respondents. Number of respondents who have completed high school is lower than that of those with some college/associate’s degree or higher, by (4,003 x 5%) = 200 303: 53 Total number of vocational respondents = 4,003 x 18% = 720 Number of vocational respondents with a family income level above the national average = 720 x 37% x 1/5 = 53 We hope this practice package is helpful in your preparation for management consulting. If you have not done so, please visit our website for free in-depth theories and practice on Consulting Math, Problem Solving Test, Case Interview and many more. hup://www.meonsultingprep.com/, PLEASE GO ON TO THE NEXT PAGE 18