If the average hourly earnings in mining in 1988 were $7.67 and for the most recent month it was $14.90, what is the index of hourly earnings for the most recent month based on 1988?
A) 100.0
B) 186.9
C) 51.5
D) 194.3
E) 151.5

Question

Quizplus · Accepted Answer

To calculate the index of hourly earnings, we use the formula:

Index = (Recent year hourly earnings / Base year hourly earnings) x 100

Substituting the values given:

Index = (14.90 / 7.67) x 100
Index = 1.94 x 100
Index = 194.3

Therefore, the index of hourly earnings for the most recent month based on 1988 is 194.3. The closest answer choice is D (194.3).

If the Average Hourly Earnings in Mining in 1988 Were