The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years. $$\begin{array}{l}
\begin{array} { | l | l | }
\hline 2005 & 0.55 \
\hline 2006 & 0.50 \
\hline 2007 & 0.40 \
\hline 2008 & 0.35 \
\hline 2009 & 0.25 \
\hline
\end{array}\
\text { TABLE 2- } 2
\end{array}$$
-Refer to Table 2- 2. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2009 is
A) 0.45
B) 25.0
C) 2.5
D) 45.45
E) 0.25

Question

The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years. $$\begin{array}{l}
\begin{array} { | l | l | } 
\hline 2005 & 0.55 \
\hline 2006 & 0.50 \
\hline 2007 & 0.40 \
\hline 2008 & 0.35 \
\hline 2009 & 0.25 \
\hline
\end{array}\
\text { TABLE 2- } 2
\end{array}$$
-Refer to Table 2- 2. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2009 is
A) 0.45
B) 25.0
C) 2.5
D) 45.45
E) 0.25

Quizplus · Accepted Answer

The index number is calculated by dividing the 2009 charge by the 2005 charge and then multiplying by 100: (0.25/0.55) * 100 = 45.45.

The Table Below Shows Hypothetical Per- Minute Cell Phone Charges