Question

3. Comparing salaries from different times Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation). To convert the original earnings of Nicklaus, Miller, and Norman, use the formula for converting dollar ligures from an earlier era into year 2018 U.S. dollars. Using those figures, nil in the following table, making sure to round your responses to the nearest U.S. dollar. Year 1965 Winnings in 2018 Dollars U.S. CPI (1983 - 100) 31.5 Golfer Jack Nicklaus Nominal Winnings (Dollars) 140,752 353,022 653,296 5,443,841 49.3 Johnny Miller 109.6 1974 1986 2018 Greg Norman Tiger Woods 251.1 5,443,841

Answer 1

(Question 3)

Winning in 2018 dollars = Nominal winnings in year N x (CPI in year 2018 / CPI in year N)

Jack Nicklaus = 140,752 x (251.1 / 31.5) = 1,121,994.51

Johny Miller = 353,022 x (251.1 / 49.3) = 1,798,049.17

Greg Norman = 653,296 x (251.1 / 109.6) = 1,496,739.29

NOTE: As HOMEWORKLIB Answering Policy, 1st question has been answered.

Answer 2

False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is not the same as the golfer with the highest PGA winnings after adjusting for inflation.

FALSE