Final answer:
The percentage to be assigned for Year 2 in a trend analysis, with Year 1 being the base year, is calculated by dividing the increase ($858 - $780) by the Year 1 value ($780), then multiplying by 100 and adding 100% for the base year. The result is 110%, making option a) the correct answer.
Step-by-step explanation:
To determine the percentage for Year 2 in a trend analysis with Year 1 as the base year, we calculate the percentage increase from Year 1 to Year 2. To do this, we first subtract the Year 1 value from the Year 2 value and then divide the result by the Year 1 value. Finally, we multiply by 100 to convert it into a percentage.
Calculation:
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- Year 1 value = $780
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- Year 2 value = $858
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- Year 2 percentage = ((Year 2 value - Year 1 value) / Year 1 value) × 100
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- Year 2 percentage = (($858 - $780) / $780) × 100
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- Year 2 percentage = ($78 / $780) × 100
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- Year 2 percentage = 0.10 × 100
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- Year 2 percentage = 10%
Since we are looking for the total percentage relative to the base year (Year 1) and not just the increase, we need to add 100% (representing the base year itself) to the 10% increase. Thus, the percentage to be assigned for Year 2 is:
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- 100% (base year) + 10% (increase) = 110%
Therefore, the correct answer is a) 110%.