Question 1
The table below shows hypothetical tuition costs at a Canadian university.
| Year | Tuition |
| 2018 | $5000 |
| 2019 | $5050 |
| 2020 | $5100 |
| 2021 | $5150 |
| 2022 | $5200 |
TABLE 2-1
Refer to Table 2-1. Assume that 2020 is used as the base year, with the index number = 100. The value of the index number in 2018 is calculated as follows:
◦ (5100/5000) × 100 = 102.
◦ 5100/5100 = 100.
◦ 5100/5000 = 1.02.
◦ (5000/5100) × 100 = 98.
◦ 5000/5100 = 0.98.
Question 2
The table below shows hypothetical monthly cell phone plan fees for the identical service over several years.
| 2018 | $55 |
| 2019 | $50 |
| 2020 | $40 |
| 2021 | $35 |
| 2022 | $25 |
TABLE 2-2
Refer to Table 2-2. Assume that 2018 is used as the base year, with the index number = 100. The value of the index number in 2021 is calculated as follows:
◦ (35/55) × 100 = 63.64.
◦ 35/55 = 0.64.
◦ (35/100) × 100 = 35.
◦ (55/35) × 100 = 157.14.
◦ 55/35 = 1.57.
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