The table below shows hypothetical tuition costs at a Canadian university. $$\begin{array}{l}
\begin{array} { | l | l | }
\hline \text { Year } & \text { Tuition } \
\hline 2005 & \$ 5000 \
\hline 2006 & \$ 5050 \
\hline 2007 & \$ 5100 \
\hline 2008 & \$ 5150 \
\hline 2009 & \$ 5200 \
\hline
\end{array}\
\text { TABLE 2- } 1
\end{array}$$
-Refer to Table 2- 1. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2007 is calculated as follows:
A) (5000/5100) × 100 = 98
B) (5100/5000) × 100 = 102
C) 5100/5000 = 1.02
D) 5100/5100 = 100
E) 5000/5100 = 0.98

Question

The table below shows hypothetical tuition costs at a Canadian university. $$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Year } & \text { Tuition } \
\hline 2005 & \$ 5000 \
\hline 2006 & \$ 5050 \
\hline 2007 & \$ 5100 \
\hline 2008 & \$ 5150 \
\hline 2009 & \$ 5200 \
\hline
\end{array}\
\text { TABLE 2- } 1
\end{array}$$
-Refer to Table 2- 1. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2007 is calculated as follows:
A) (5000/5100) × 100 = 98
B) (5100/5000) × 100 = 102
C) 5100/5000 = 1.02
D) 5100/5100 = 100
E) 5000/5100 = 0.98

Quizplus · Accepted Answer

The index number is calculated by dividing the current year's tuition by the base year's tuition and multiplying by 100. In this case, the index number for 2007 is (5100/5000) × 100 = 102.

The Table Below Shows Hypothetical Tuition Costs at a Canadian