Attempts 3. Comparing salaries from different times Consider golfers who led the

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Attempts 3. Comparing salaries from different times Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at different points in time. Note that the winnings are Average: /2 nominal figures (unadjusted for inflation). To convert the original earnings of Nelson, Nicklaus, and Pavin, use the formula for converting dollar figures from an earlier era into year 2000 u.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar to round your responses to the nearest U.S. dollar. Nominal WinningsU.S. CPI Year 1945 Byron Nelson 1973 Jack Nicklaus 1991 Corey Pavin 2000 Tiger Woods Golfer (Dollars) (1983 100) Winnings in 2000 Dollars 63,336 308,362 979,430 9,188,321 18 44.4 136.2 172.2 9,188,321 True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is not the same as the goilfer with the highest PGA winnings after adjusting for inflation. True False

Explanation / Answer

Winning in the year 2000 $

=Nominal Winning *(Year 2000 CPI/Current CPI)

Nelson winning (1945) = 63336*(172.2/18)= $ 605,914.4

Nicklaus earning (1973) = 308,362*(172.2/44.4)= $ 1,155,944.5

Pravin earning (1991) = 979,430*(172.2/136.2) = $ 1,238,310.2

From the above table we can see in the year 2000 the winner earned $ 9,188,321 while other winners winning amount is less than Tiger woods earning.

Thus, Tiger Woods has highest earning in nominal winning and after adjusting for inflation Tiger Woods has the highest earning.

So, in both cases same golfer has the highest earning.

False.

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Thank you.

Year Nominal winning ($) US CPI winning in 2000 $ 1945 63,336 18 $ 605,914.4 1973 308,362 44.4 $ 1,195,944.5 1991 979,430 136.2 $ 1,238,310.2 2000 9,188,321 172.2 $ 9,188,321

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