Question

According to a NY Times article on December 13, 2009, The average selling price of a 32-inch LCD TV was $600. Use the annual CPI values from your text to compute the cost of that same TV in 2010 dollars. Express your answer rounded to the nearest cent.

Answer 1

Answer:

Your answer should be 647.51

Explanation : the price was 215.949 in December, 2009.

the price was 233.049 in December, 2013.

divide 233.049 by 235.949 and got 1.079185363.

multiply that by 600 and got 647.5112179.

Answer 2

The cost of the TV in 2010 is $647.5

Calculations and Parameters

Given that the complete information contains the Consumer Price Index values:

To find the CPI,

CPI= $\frac{C_t}{C_0}$

Where C_t= cost of the market basket in the current period

C_0 = cost of the market basket in the base period

In December 2009, the price was 215. 949

In December 2013, the price was 233.049

Hence,

215. 949/233.049

= 1.079185363.

Then we would multiply by the base selling price

$1.079185363 * 600 = 647.5112179.$.

Read more about the consumer price index here:

https://brainly.com/question/1889164

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