In which year is the quarterly compound average growth rate (CAGR) the second lowest?
Explanation:
Observe that the Output for Quarter 4 is less than the Output for Quarter 1 for all four years. Hence, the CAGR will be negative for each year.
Hence, the second lowest CAGR will effectively be the second highest magnitude of CAGR.
By observation itself, 2000 will have the highest magnitude of CAGR and 1998 will have the second highest magnitude.
Hence, the quarterly CAGR will be second lowest in 1998.
Hence, option (d).
Note:
You can calculate the actual CAGR as: 1998:- −2.09%; 1999:- −0.49%; 2000:- −9.43%; 2001:- −1.12%
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