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Subject: Mathematics / Statistics
1. 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 period2002?
(Round the final answer to 5 decimal places.)
(b) Determine Mr. Martins “real” monthly income for 2007. (Round thefinal 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 thefinal 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
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