Consider golfers who led the Professional Golfers\' Association of America (PGA)

Question

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, Miller, and Pavin, use the formula for converting dollar figures from an earlier era into today's (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. True or False: According to the previous table, the golfer w.th the highest PGA winnings in nominal dollars is the same as the golfer with the highest PGA winnings after adjusting for inflation. True False

Explanation / Answer

The winnings in 2000 dollars are given as follows:

For year 1968:

172.2/34.8 = $ 4.94

=> $1 in 1968 = $4.94 in 2000

=> 205,169*4.94 = $1,013,534.86

For Year 1974:

172.2/49.3 = $3.49

=> $1 in 1974 = $3.49 in 2000

=> 353,022*3.88 = $1,369,725.36

For Year 1991:

172.2/136.2 = $1.26

=> $1 in 1991 = $1.26 in 2000

=> 979,430*1.26 = $1,234,081.80

For year 2000:

172.2/172.2 = $1

=> $1 in 2000 = $1 in 2000

Hence 9,188,321*1 = 9,188,321

The given statement is True since from the values we observe that 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.

The correct answer is option A: True

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