P&G Data Interpretation 2 — Questions and Answers
Question 1: A scatter plot shows a strong positive correlation between P&G's advertising spend and brand recognition scores. What does this indicate?
- Higher ad spend directly causes higher recognition
- Higher ad spend is associated with higher recognition, but causation is not proven (Correct answer)
- Recognition causes P&G to spend more on ads
- The data is unreliable
Correct answer: Higher ad spend is associated with higher recognition, but causation is not proven
A positive correlation indicates association, not causation, between the two variables.
Question 2: P&G's gross margin was 48% in 2023 and 51% in 2025. If 2025 revenue is $85B, what is the 2025 gross profit?
- $40.8B
- $43.35B (Correct answer)
- $45B
- $48B
Correct answer: $43.35B
$85B × 51% = $43.35B gross profit.
Question 3: A pie chart shows P&G revenue split: US 40%, Europe 25%, Asia Pacific 20%, Latin America 10%, Other 5%. If US revenue is $32B, what is the total global revenue?
- $64B
- $72B
- $80B (Correct answer)
- $88B
Correct answer: $80B
Total = US revenue ÷ US share = $32B ÷ 0.40 = $80B.
Question 4: P&G's e-commerce channel grew from 8% of sales in 2020 to 20% of sales in 2024. If 2024 total sales are $82B, what is the e-commerce sales value in 2024?
- $14.4B
- $16.4B (Correct answer)
- $18.2B
- $20B
Correct answer: $16.4B
$82B × 20% = $16.4B in e-commerce sales.
Question 5: A bar chart shows consumer satisfaction scores by product category (out of 10): Laundry 8.2, Baby 9.1, Grooming 7.8, Beauty 8.5. What is the average satisfaction score?
- 8.2
- 8.4 (Correct answer)
- 8.6
- 8.9
Correct answer: 8.4
(8.2 + 9.1 + 7.8 + 8.5) ÷ 4 = 33.6 ÷ 4 = 8.4.
Question 6: P&G's cost of goods sold (COGS) decreased from 55% of revenue to 49% of revenue. If revenue stayed constant at $75B, how much did COGS decrease in dollar terms?
- $3B
- $4B
- $4.5B (Correct answer)
- $5B
Correct answer: $4.5B
(55% − 49%) × $75B = 6% × $75B = $4.5B reduction in COGS.
A scatter plot shows a strong positive correlation between P&G's advertising spend and brand recognition scores.
What does this indicate?