Advanced Math Topics 2.6 Index Numbers

Index number:a ratio used to show % changes over time They allow us to compare prices, products, sales figures, and more for a given period of time against another period of time. The earlier period (usually it is the earlier period) of time is called the base period. Index number = given year’s value base year’s value X 100

The best known price index is the Consumer Price Index (C.P.I.) published by the U.S. Bureau of Labor Statistics. It is better known as the cost of living index. It is calculated monthly and includes the results of surveys for the prices of over 400 goods and services including food, clothing, medical costs, auto repair, college tuition, and more. Thus, it can used as a measure of inflation. When the Consumer Price Index increases, so do wages, pensions, and Social Security payments. Therefore, many unions tie salary increases to the cost of living index.

The number of yearly visitors to the SRVUSD website over a six year period is as follows: YearVisitors , , , , , ,320 Using 2001 as a base year, calculate the index number for each year and evaluate using % increase or % decrease. Index Number 418,355 X 100 = , ,355 X 100 = % Change from % Change from = 17.46% Increase in hits from , ,355 X 100 = = 1.59% Decrease in hits from , ,355 X 100 = = 16.86% Increase in hits from , ,355 X 100 = = 20.33% Increase in hits from , ,355 X 100 = = 20.79% Increase in hits from 2001

From the HW together… P #1-3

Assignment P # 1-7, 10 Chapter 2 Test date on back board