The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years. $$\begin{array} { | l | l | }
\hline 2008 & 0.55 \
\hline 2009 & 0.50 \
\hline 2010 & 0.40 \
\hline 2011 & 0.35 \
\hline 2012 & 0.25 \
\hline
\end{array}$$ TABLE 2- 2
-Refer to Table 2- 2.Assume that 2008 is used as the base year,with the index number = 100.The value of the index number in 2012 is
A)45.45
B)0.45
C)25.0
D)2.5
E)0.25

Question

The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years. $$\begin{array} { | l | l | } 
\hline 2008 & 0.55 \
\hline 2009 & 0.50 \
\hline 2010 & 0.40 \
\hline 2011 & 0.35 \
\hline 2012 & 0.25 \
\hline
\end{array}$$ TABLE 2- 2
-Refer to Table 2- 2.Assume that 2008 is used as the base year,with the index number = 100.The value of the index number in 2012 is
A)45.45
B)0.45
C)25.0
D)2.5
E)0.25

Quizplus · Accepted Answer

The index number is calculated by dividing the charge in 2012 by the charge in 2008 and then multiplying by 100: (0.25 / 0.55) * 100 = 45.45.

The Table Below Shows Hypothetical Per- Minute Cell Phone Charges