Statistical Reasoning for everyday life. Intro to Probability and Statistics Mr. Spering – Room 113. 2.4 Index Numbers. Inflation – an increase in credit relative to available goods resulting in substantial and continual rise in prices.
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Statistical Reasoningfor everyday life
Intro to Probability and Statistics
Mr. Spering – Room 113
index number =
--Everything in this journey of life depends on your reference point.--
COMPARING GASOLINE PRICES ( PER GALLON)
Suppose the cost of gasoline today is $ 2.60 per gallon. What is the price index number for gasoline today, with 1975 price ($ 0.567) as the reference value?
Suppose that it cost $10 to fill your gas tank in 1975. How much will it cost now?
Suppose it would have cost you $15 to fill your gas tank in 1985 (index # 210.9). How much will it cost you now?
The average cost of tuition, fees, and room and board at a four-year public universities rose from $2,490 in 1980 to $7,800 in 1997. Calculate the percentage rise in cost from 1980 to 1997, and compare it to the overall rate of inflation as measured by the CPI.
***Therefore, the tuition rate increased more than twice as much as the inflation rate for the same time period.
----Failing to prepare is preparing to fail----
---GIVING your best EFFORT based on the KNOWLEDGE you have attained is not GOOD enough if the amount of KNOWLEDGE you possess reflects a LACK of effort to LEARN--- Lawrence W. Schott
pg 80 #1-19 odd