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 2012 is used as the base year,with the index number = 100.The value of the index number in 2015 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 2012 is used as the base year,with the index number = 100.The value of the index number in 2015 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, we need to compare the price in a certain year to the price in the base year (2012), and then multiply by 100. For 2015, the price is $215, compared to $180 in 2012. So, (215/180) × 100 = 119.4. Therefore, the index number for 2015 is 119.4, which means that the price has increased by 19.4% since 2012.

The Table Below Shows Hypothetical Prices for a Particular Anatomy