You decide you want to compare your average price level for what you spend on entertainment.Last year, which you decide will be the base year, your spent $50 for a concert, $15 per movie, and $25 for a dinner out.This year, these same activities cost $75, $20, and $40, respectively.Calculate your entertainment index.
A)1.5
B)150
C).67
D)66.7

Question

Quizplus · Accepted Answer

To calculate the entertainment index, we need to use the formula: 
(Current year cost of entertainment / Base year cost of entertainment) x 100

Using the given values, we get: 
Concert: (75/50) x 100 = 150 
Movie: (20/15) x 100 = 133.33 
Dinner: (40/25) x 100 = 160

To get the overall entertainment index, we need to find the average of these values: 
(150 + 133.33 + 160) / 3 = 147.78

Rounding this to the nearest whole number gives us the answer of 150, choice B.

You Decide You Want to Compare Your Average Price Level