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Statistics - Compare the Hourly Wage Increases for the Period

14. The Trade Union Association of Orlando, Florida, maintains indexes on the hourly wages for a number of the trades. Unfortunately, the indexes do not all have the same base periods. Listed below is information
on plumbers and electricians. Shift the base periods to 2000 and compare the hourly wage increases for the period from 2000 to 2006.

Year Plumbers (1995 = 100) Electricians (1998 = 100)
2000 133.8 126.0
2006 159.4 158.7

Plumber = Electrician =

Plumber's wages have increased percent, where as electrician has increased percent.

16. 2. Sam Steward is a freelance Web page designer. Listed below are his yearly wages for the
years 2002 through 2008. Also included is an industry index for Web page designers that
reports the rate of wage inflation in the industry. This index has a base period of 1995.
Compute Sam's real income for the period. Did his wages keep up with inflation, or did he
lose ground?
Year Wages ($000) Index (1995 = 100)
2002 134.8 160.6
2004 145.2 173.6
2006 156.6 187.9
2008 168.8 203.3

38. Determine a value index for 2006 using 2000 as the base period.
Below is information on food items for the years 2000 and 2006
.
Item Price Quantity
2000 2006 2000 2006
Cabbage (pound) $0.06 $0.05 2,000 1,500
Carrots (bunch) 0.10 0.12 200 200
Peas (quart) 0.20 0.18 400 500
Endive (bunch) 0.15 0.15 100 200

a. Determine a value index for 2006 using 2000 as the base period.
b. Compute Paasche's index for 2006 using 2000 as the base period.

50. Determine a value index for 2006 using 1990 as the base period.
Production figures for those two periods are given below.
Item Price Quantity
1990 2006 1990 2006
Aluminum Cans (cents per pound) $0.287 $0.76 1,000 1,200
Natural Gas (1,000 cubic feet) 0.17 2.50 5,000 4,000
Petroleum (barrel) 3.18 26.00 60,000 60,000
Platinum (troy ounce) 133.00 490.00 500 600

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Solution-1:
Plumber's 2006 index (2000 = 100) is given as:
(100×159.4)/133.8=119.13
Percentage increase from 2000 to 2006 is given as:
(119.13-100)/100×100%=19.13%

Electrician's 2006 index (2000 = 100) is given as:
(100×158.7)/126.0=125.95
Percentage increase from 2000 to 2006 is given as:
(125.95-100)/100×100%=25.95%
Plumber's wages have increased 19.13% whereas electrician's wages have increased ...

Solution Summary

The expert compares the hourly wage increases for the period of statistics.

$2.19