1) What was the rating for Tolerance of Nicotine?2) What is the cumulative rating for marijuana?3) Which addictive property had the highest rating for cocaine?

Section 2.6

Index Numbers

A special ratio that is used to show percentage changes over a period of time.

The most famous Index Number is called the Consumer Price Index (CPI).

Consumer Price Index: What is it?

The CPI originated in 1919: Every 10 years, the Bureau of Labor

Statistics (BLS) surveys the buying habits of American families to determine which items go into the market basket.

Currently, there are approximately 80,000 items in the "basket."

Price data for these items is collected monthly from 22,500 specific outlets and 7,300 specific housing units in 44 urban areas.

HOW THE CPI IS USED

• measure of inflation• guide to making economic

decisions • used by Congress, the President,

and the Federal Reserve to help formulate fiscal and monetary policies.

CPI CALCULATORHow much does $20 now relate to $20 in 1982?

Formula for Index Numbers

Index Number = 100

Current value

Base value

BASE PERIOD

You must know what the BASE PERIOD is before you can tabulate other index numbers.

B.P. index number = 100.

< 100 represents a decrease in value.

> 100 represents an increase.

Consumer Price Index (Norway) The Consumer Price Index. 1998 = 100

All-item index 105.3 Food and non-alcoholic beverages 105.3 Alcoholic beverages and tobacco 110.7 Clothing and footwear 91.0 Housing, water, electricity, fuels 106.4 Furnishings household equipment 101.6 Health 108.9 Transportation 108.9 Communications 89.9 Recreation and culture 104.1 Education 108.5 Restaurants and hotels 107.4 Miscellaneous goods and services 107.3

Using INDEX NUMBERS

Year Gold Value Index Number

% Change YR to YR

1910 20.67

1920 20.67

1930 20.67

1940 34.5

1950 40.25

1960 36.5

1970 37.6

1980 641.2

1990 423.8

2000 272.15

2005 513

2006 628.2

2010 898