Keep the Highest: 0.7/2 Attempts: 0.7 3. Comparing salaries from different times

Question

Keep the Highest: 0.7/2 Attempts: 0.7 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 nominal figures (unadjusted for inflation) To convert the original earnings of Casper, Watson, and Kite, use the formula for converting dollar figures from an earlier era into year 2010 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar ominal Winnings (Dollars) 205,169 530,808 375,699 20,508,163 U.S. CPI Year 1968 Billy Casper 1980 Tom Watson 1981 2010 Tiger Woods Golfer (1983100) Winnings in 2010 Dollars 34.8 82.4 90.9 224.9 Tom Kite 20,508,163 True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is the same as the golfer with the highest PGA winnings after adjusting for inflation O True False Grade It Now Save & Continue Continue without saving

Explanation / Answer

Conversion of dollar value from past year to 2010

Winning in 2010 in dollars = (CPI of 2010/ old CPI) x Nominal winning

CPI in 2010 = 224.9

Tom Watson

Answer: True

As we can see Tiger Woods has the highest winnings before and after adjustment .

Name Nominal winning CPI value in past winning in 2010 Bill casper 205169 34.8 (224.9/34.8)*205169 = 1325934.14

Tom Watson

530808 82.4 (224.9/82.4)*530808= 1448770.86 Tom kite 375699 90.9 (224.9/90.9)*375699= 929534.71

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