Lets take the example of oil prices as before. Column B repeats the average annual price of
Question:
Let’s take the example of oil prices as before. Column B repeats the average annual price of domestic crude oil in $/bbl. These values are given in current dollars, i.e. the value of the dollar in every given year. The second column shows us the values of the CPI index for every year, given on the basis of year 2000 = 100 (Figure 9.8).
Transcribed Image Text:
**********20 Example 9.5 Year 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Oil price $31.42 $35.75 $31.83 $29.08 $25.75 $26.32 $14,44 $17.75 $14.87 $18.33 $23.19 $20.20 $19.25 $16.75 $15.66 $16.75 $20 46 $18.64 $11.91 $16.54 $27.39 $23.05 $22.81 $27.69 $37.66 $50.04 $56.34 $64.20 $91.48 $53.48 $71.21 $87.04 Figure 9.8 Oil prices deflated with CPI CPI 2000-100 47 16 52.8 56.04 57.04 60.33 62 47 63.65 65.58 68 67 71.99 75.18 19.19 01.40 83.19 86.08 88 49 91.09 93.22 94.66 96.73 101 102 83 104.46 106.83 199.69 113.41 117.07 120.41 125.03 124.59 126.63 130 63 Delated to 2006 $valua $78 19 567.71 $56 80 $50 28 547 65 $43.09 $22.69 $26.90 $2165 $25 46 530 56 $25.54 $23 63 $19.97 $18 19 $18.93 $22 46 $20.00 31268 $17.12 $27.39 $22.37 $2184 $25.92 $34 33 $44 12 349 00 $53.32 573 17 $42.92 $56.23 566 63 Formulao C4 SDS24/04)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
To convert the prices of oil into a constant value we need to deflate them In our ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
You would like to design a product to sell to shopping malls that tells them more about the behaviours of their customers. The system would use cameras to track customers as they walk from store to...
-
Bonds with a face value of $1,000 were issued for $920. Make the necessary journal entry on the books of the issuer.
-
If a basketball team's present record is 42 wins and 36 losses, how many consecutive games must it win so that its winning record reaches 60%?
-
Fernandez & Co. experienced the following six events during the current year: 1. The sale of common stock to investors for \($5\) million cash. 2. The sale of a new bond issue to investors for...
-
On January 31, 2018, The Hershey Company acquired Amplify Snack Brands, Inc., its largest business acquisition to date. Access Hersheys 2018 financial statements and media reports near the time of...
-
Explain the main procedures of CSMA/CA protocol; discuss whether QoS can be provided in legacy Wi-Fi.
-
Is it possible to have a time series that is non-seasonal and non-stationary? If so, how would you call it and can you draw a graph showing how such a series might look?
-
Baker Ltd is concerned about the influence on petrol prices on its profit margins. The owner of the company looked at weekly petrol prices (pence per gallon) for London and compiled a time series....
-
Using the data for drugs 1 and 3 in Exercise 13.35, make a 2 Ã 2 contingency table and test Ho - p1 = P3 versus H0: p1 p3 at a = .05 employing: (a) The x2 test. (b) The Z test. In Exercise...
-
Upon reaching your 8-year anniversary with Bike Hard, you are promoted to a high level management position. Bike Hard manufactures a unique line of bicycling helmets and has 85 employees whose jobs...
-
Annual credit sales of Nadak Company total $ 3 2 4 . 6 million. The firm gives a 2 . 2 5 % cash discount for payment within 1 0 days of the invoice date; 7 5 % of Nadak's accounts receivable are paid...
-
We have a 50 Ti nucleus accelerated to 5000.000 + 0.050 MeV. What is the phase velocity and the de Broglie wavelength of the ion? What is the minimum positional uncertainty of the particle...
-
The Salad Oil Scandal of the early 1960s was one of the worst corporate scandals of its time. It occurred when executives at New Jersey-based Allied Crude Vegetable Oil Company discovered that banks...
-
What is the Bill of Rights? How does the original text of the Constitution protect civil liberties? What kinds of rights does the Bill of Rights protect that the original body of the Constitution...
-
Castile Inc. had a beginning balance of $4,000 in its Accounts Receivable account. The ending balance of Accounts Receivable was $4,500. During the period, Castile recognized $68,000 of revenue on...
-
1. Using the information from Problem 16-4B, prepare a statement of cash flows for Lim Garden Supplies Inc. using the direct method of presenting cash flows from operating activities. 2. How does Lim...
-
A home builder must construct a sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating cost and to replace the treatment plant every 40...
-
The local botanical society wants to ensure that the gardens in the town park are properly cared for. They recently spent $100,000 to plant the gardens. They would like to set up a perpetual fund to...
-
An elderly lady decided to distribute most of her considerable wealth to charity and to retain for herself only enough money to provide for her living. She feels that $1000 a month will amply provide...
-
Uliana Company wants to issue new 22-year bonds for some much-needed expansion projects. The company currently has 10.2 percent coupon bonds on the market that sell for $1,142, make semiannual...
-
Sam Inc. uses the weighted average method of process costing. The company's ending work in process inventory consisted of 8,000 units that were 80% complete. Materials are added at the beginning of...
-
In simple regression, the ______ is defined as the predicted change in Y given a one-unit change in X
Study smarter with the SolutionInn App