Transcript for the years 1970-2008

Final Review
Loan info
No localized trendline
Suppose your boss gives you a 1% raise while
inflation goes up 3%. What would your nonconstant dollar graph look like?
How ‘bout constant dollar graph?
In 1950 the median family income was $3,319,
while the average Major League baseball player
salary was $13,228. In 1998 the median
household income was $38,885, while the
average Major League baseball player income
was $1.4 million.
Using the CPI.xls, convert each of the 1950 incomes
to constant 1998 dollars and compare the salaries
of baseball players and the average household to
each other and to their actual 1998 values. Put
the constant dollar values in your word
document.
Using the CPI.xls, convert each of the
1950 incomes to constant 1998 dollars
1950 Baseball 1950 Household
in 1998
in 1998
dollars
dollars
89,467.39
22,448.01
…and compare the salaries of baseball players
and the average household to each other
1950 baseball 1950 Household
in 1950
in 1950
dollars
dollars
13,228.00
3,319.00
1950 Baseball 1950 Household
in 1998
in 1998
dollars
dollars
89,467.39
22,448.01
and to their actual 1998 values.
1998 Actual
baseball salary
1998 actual
household
salary
1,400,000.00
38,885.00
1950 Baseball 1950 Household
in 1998 dollars in 1998 dollars
89,467.39
22,448.01
Have baseball player salaries risen faster than
the salaries of the average worker? By what
percent are the actual incomes in 1998 larger
than the constant dollar values of the 1950
incomes? Show your work for both the
median household and the baseball player.
1,400,000 89,467.39
 14.67  1467%
89,437.39
38,885.00  22,448.01
 .73  73%
22,448.01
If we play basketball and I score 100 points and
you score 80. By what percent is my score
larger than yours?
By what percent is your score smaller than
mine?
If the price of an item increases at the same rate
as inflation, what would the constant dollar
graph for that item look like?
What does the graph of DePaul tuition in
constant 2008 dollars tell you about tuition
increases over the years? Is DePaul tuition
growing faster, slower, or at the same rate as
inflation?
DePaul Tuition in constant 2008 dollars
$30,000.00
$25,000.00
$20,000.00
$15,000.00
$10,000.00
$5,000.00
$1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
The annual inflation rate is defined as the percentage
change in the annual CPI from the previous year to the
current year. For example, the CPI in 1998 was 163.0
while the CPI in 1999 was 166.6. The inflation rate for
1999 was therefore (166.6-163.0)/163.0 or 2.2%.
a. Open the file CPI.xls, which contains the annual CPI
from 1912 to 2008. Add a new column to the table
that contains the inflation rate for each year. Paste the
resulting table for the years 1970-2008 into your Word
document. Please do not paste the entire table from
1912-2008 into the document; we want to focus on the
years 1970-2008.