The table below shows hypothetical tuition costs at a Canadian university.
TABLE 2-1
-Refer to Table 2-1.Assume that 2012 is used as the base year,with the index number = 100.The value of the index number in 2014 is calculated as follows:
A)(5000/5100)× 100 = 98.
B)5100/5000 = 1.02.
C)5000/5100 = 0.98.
D)5100/5100 = 100.
E)(5100/5000)× 100 = 102.

Question

The table below shows hypothetical tuition costs at a Canadian university.
  TABLE 2-1
-Refer to Table 2-1.Assume that 2012 is used as the base year,with the index number = 100.The value of the index number in 2014 is calculated as follows:
A)(5000/5100)× 100 = 98. 
B)5100/5000 = 1.02. 
C)5000/5100 = 0.98. 
D)5100/5100 = 100. 
E)(5100/5000)× 100 = 102.

Quizplus · Accepted Answer

The index number for 2014 is calculated by dividing the value in 2014 by the base year value (2012) and then multiplying by 100 to convert it to an index.

The Table Below Shows Hypothetical Tuition Costs at a Canadian