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Just making sure my answers are correct Quiz Chapter 15 2 points each 1. Why are index numbers used? 2. If, in the base year

Just making sure my answers are correct

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Quiz Chapter 15 2 points each 1. Why are index numbers used? 2. If, in the base year of 1990, you paid $305,000 for your Ferrari Maranello & the index of Ferrari prices is now 177, what would it cost you today? p,=|:| 3. If the Consumer Price Index, where the base period is 1982, was 189 in 2002, by what % have prices risen since 1982? Assignment Chapter 15 Exercise 2: The table below reports the earnings per share of common stock for Home Depot Inc. for recent years. Develop an index, with 2001 as the base, for the change in earnings per share over the period. Year Earnings Year Index: 2001 1.29 2002 2002 1.56 2003 2003 1.88 2004 2004 2.26 2005 2005 2.72 Exercise 4: In January 1994 the price for a whole fresh chicken was $0.899 per pound. In July 2005 the price for the same chicken was $1.093 per pound. Use the January 1994 price as the base period and 100 as the base value to develop a simple index. By what percent has the cost of chicken increased? Index = Increase % =

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