Question

The minimum wage in 1965 was $1.25 and it was $7.25 in 2015. if the minimum wage had grown with inflation, what would have been the expected value in 2015? round to the nearest cent.

Answer 1

The expected value of the minimum wage in 2015, if it had grown with inflation, would have been approximately $5.82.

Step-by-step explanation:

To find the expected value of the minimum wage in 2015 if it had grown with inflation, we need to adjust the 1965 minimum wage of $1.25 for inflation.

First, we need to calculate the inflation rate between 1965 and 2015. Let's assume the inflation rate during this period was 3% per year.

To calculate the expected value in 2015, we can use the formula:

Expected value = 1965 minimum wage * (1 + inflation rate)number of years

Expected value = $1.25 * (1 + 0.03)50

Converting this calculation to decimal form:

Expected value = $1.25 * (1.03)50

After evaluating this expression, the expected value of the minimum wage in 2015, if it had grown with inflation, would have been approximately $5.82 when rounded to the nearest cent.