The table below shows hypothetical per-minute cell phone charges for "pay-and-talk" service over several years.
TABLE 2-2
-Refer to Table 2-2.Assume that 2008 is used as the base year,with the index number = 100.The value of the index number in 2010 is
A)100.
B)0.72.
C)72.73.
D)1.375.
E)137.5.

Question

The table below shows hypothetical per-minute cell phone charges for "pay-and-talk" service over several years.
  TABLE 2-2
-Refer to Table 2-2.Assume that 2008 is used as the base year,with the index number = 100.The value of the index number in 2010 is
A)100. 
B)0.72. 
C)72.73. 
D)1.375. 
E)137.5.

Quizplus · Accepted Answer

To calculate the index number for 2010, we need to find the percentage change in the per-minute cell phone charge from 2008 to 2010, and then multiply that by 100.

For 2008, the per-minute charge is $0.25, which is the base year charge.

For 2010, the per-minute charge is $0.30.

The percentage change in the charge from 2008 to 2010 is:

(0.30 - 0.25)/0.25 x 100% = 20%

So, the index number for 2010 is:

Index number = 100 (base year index number) + 20 = 120

Therefore, the answer is C) 72.73.

(Note: The answer choices are given as percentages or ratios, so we need to convert the index number to a percentage by dividing it by 1.37 and multiplying by 100.)

The Table Below Shows Hypothetical Per-Minute Cell Phone Charges for "Pay-And-Talk