Mind Altempts: 3. Coemparing salaries from different times Consider gofers who l

Question

Mind Altempts: 3. Coemparing salaries from different times Consider gofers who led the Professional Gofers' Aouociation of America (PGA) in winnings at dflerent points in time Note that the winniegs are Aerage2 nominal figures (unadjusted for inflation). To convert the origimal 2010) U.S. dolary, Using th af Nkklaus, Mile, and rman, use the formdafer converting dollar fgures from an earter ora res tan (ver e figures, ni te following table, making sure to round responses to the nearest us dolar, Nominal Winnings US. CPI (Dollers) (1983-100) Winnings in 2010 Dollars Year Golfer 1965 lack Nicklaus 1974 Johnny Miller 1986 Greg Norman 2010 Tiger woods (Dollars) 140,752 353,022 653,296 20,548,163 31.5 49.3 09.6 224.9 20,508,163 True or False: According to the previous table, the golfer with the Nighest PG highest PGA winnings after adjusting for inflation t winsings in nominal dollars is not the same as the golfer with the

Explanation / Answer

New = Original x (Current year index/ Original year index)

Jack Nicklaus = 140752*100/31.5 *224.9/100=313655124

Lee Trevino = 353,022*100/49.3 *224.9/100 = 1610439

Greg Norman = 653,296*100/109.6*224.9/100 = 1340568

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