1. Advanced Math Topics 2.6 Index Numbers

2. 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

3. 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.

4. The number of yearly visitors to the SRVUSD website over a six year period is as follows: YearVisitors 2001 2002 2003 2004 2005 2006 418,355 491,398 411,688 488,894 503,391 505,320 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 = 100 491,398 418,355 X 100 = 117.46 % Change from 2001 0% Change from 2001 117.46-100 = 17.46% Increase in hits from 2001 411,688 418,355 X 100 = 98.41 98.41-100 = 1.59% Decrease in hits from 2001 488,894 418,355 X 100 = 116.86 116.86-100 = 16.86% Increase in hits from 2001 503,391 418,355 X 100 = 120.33 120.33-100 = 20.33% Increase in hits from 2001 505,320 418,355 X 100 = 120.79 120.79-100 = 20.79% Increase in hits from 2001

5. From the HW together… P. 81-82 #1-3

6. Assignment P. 81-82 # 1-7, 10 Chapter 2 Test date on back board