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 Palmer, Trevino, and Norman, use the formula for converting dollar figures from an earlier era into year 2000 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar. Nominal Winnings (Dollars) Winnings in 2000 Dollars Year 1963 1970 Golfer Arnold Palmer Lee Trevino Greg Norman Tiger Woods 128,230 157,037 U.S. CPI (1983 = 100) 30.6 38.8 109.6 1986 2000 653,296 9,188,321 172.2 9,188,321 True or 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. O True False

Answer 1

Year and winnings in 2000 dollars

1963 = 128230*172.2/30.6 = 721608

1970 = 157037*172.2/38.8 = 696953

1986 = 653296*172.2/109.6 = 1026438

The statement is False as Tiger Woods is still at the highest winnings