1. In January 2001, the price for a whole fresh chicken was 1.99 per kilogram. In September 2014, the price for the same chicken was $5.49.(Round the final answers to 1 decimal place.)

(a) Use the January 2001 price as the base period and 100 as the base value to develop a simple index.

(b) By what percentage has the cost of chicken increased during the 13-year period?

2.The price of a pair of boots in 2006 was $ 125 and $ 150 in 2014. During the same period, the CPI (Consumer Price Index) for clothing and footwear increased by 3.1 %. Did the price of the boots increase more than, the same, or less than the CPI? (Round the final answer to the nearest one.)

3. Sam Steward is a freelance Web page designer. His yearly wages for the years 2009 through 2014 are listed below. An industry index for computer programmers that reports the rate of wage inflation in the industry is also included. This index has a base of 1998.

Year	Wage ($ thousands)	Index (1998 = 100)
2009	$175	148.3
2010	175	140.6
2011	150	120.9
2012	120	110.2
2013	120	105.3
2014	130	105.0

(a) Compute Sam's real income for the period. (b) Did his wages match the increase or decline in the industry?

4. The table below gives information on the CPI and the monthly take-home pay of Bill Martin, an employee at the Jeep Corporation. (a) What is the purchasing power of the dollar for 2007 based on the period 2002? (Round the final answer to 5 decimal places.) (b) Determine Mr. Martins "real" monthly income for 2007. (Round the final answer to 2 decimal places.) . (c) What is the purchasing power of the dollar for 2010 based on the period 2002? (Round the final answer to 5 decimal places.) (d) Determine Mr. Martin's "real" monthly income for 2010. (Round the final answer to 2 decimal places.)

Year (2002 = 100)	Consumer Price Index (CPI)	Mr. Martins Monthly Take-Home Pay ($)
2002	100.0	2400
2007	111.5	2800
2010	116.5	2900
2013	122.8	3050

5. In 2009, the mean salary for a marketing director with a bachelor's degree was $89,673. The CPI for 2009 was 114.4. The mean annual salary for a marketing director in the base period of 2002 (2002 = 100.0) was $ 69,800. What was the real income of the marketing director in 2009? How much had the mean salary increased?

6. The following table gives information on the CPI and the yearly salary of Simone Smith:

Year	Consumer Price Index (2002=100)	Simone Smith's Yearly Salary
2002	100.0	$30,000
2006	109.1	$32,250
2010	116.5	$36,000
2013	122.8	$40,500

(a) What is the purchasing power of the dollar for 2013 based on the period 2002?

(b) Determine Simone Smith's real yearly salary for 2010. Interpret the result. (c) What is the purchasing power of the dollar for 2013 based on the period 2006? (d) Determine Simone Smith's real yearly salary for 2013. Interpret the result.

7. Sales for the La Parisienne Cosmetics Company (in $ millions) are as follows:

Year	Sales ($ millions)	Year	Sales ($ Millions)	Year	Sales ($ Milions
1996	2.3	2003	4.5	2010	4.5
1997	2.9	2004	4.7	2011	4.9
1998	3.4	2005	5.0	2012	5.2
1999	4.5	2006	5.2	2013	5.5
2000	3.4	2007	5.5	2014	5.8
2001	4.0	2008	4.3
2002	4.2	2009	4.4

Tip - Be sure to include the full tables

(a) Develop a three-year moving average. (b) Develop a four-year moving average. (c) Develop a five-year moving average.

(d) Develop a seven-year rmoving average.

(e) Interpret your findings.