Question

Suppose the current cost of gasoline is

​$3.48

per gallon. Find the current price index​ number, using the 1975 price of

56.7

cents as the reference value.

The current price index number is

nothing.

​(Round to one decimal place as​ needed.)

Answer 1

The current price index number is $604.2.

Explanation:

The index value is the ratio between the current value and the reference value, multiplied by 100.

In this problem, we have that:

Current value = $3.48

Reference value: $0.576

Index price = (3.48/0.576)*100 = $604.2.

The current price index number is $604.2.