The table below shows hypothetical prices for a particular anatomy textbook at a university bookstore over several years. TABLE 2-4 Refer to Table 2-4.Assume that 2015 is used as the base year,with the index number = 100.The value of the index number in 2018 is calculated as follows:
A)215/180 = 1.194.
B)180/215 = 0.837.
C)(215/180)× 100 = 119.4.
D)(180/215)× 100 = 83.7.
E)(215 - 180)= 35.

Question

The table below shows hypothetical prices for a particular anatomy textbook at a university bookstore over several years.  TABLE 2-4 Refer to Table 2-4.Assume that 2015 is used as the base year,with the index number = 100.The value of the index number in 2018 is calculated as follows:
A)215/180 = 1.194. 
B)180/215 = 0.837. 
C)(215/180)× 100 = 119.4. 
D)(180/215)× 100 = 83.7. 
E)(215 - 180)= 35.

Quizplus · Accepted Answer

To calculate the index number for 2018, we need to divide the 2018 price by the base year price (2015) and then multiply by 100 to get a percentage. Therefore, (215/180) x 100 = 119.4, which means the price of the textbook in 2018 is 119.4% of the price in 2015, or a 19.4% increase from the base year.

The Table Below Shows Hypothetical Prices for a Particular Anatomy