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If the consumer price index for a sample of goods and services purchased in Dallas Rose from 100 at the end of 1967 to x

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by BTGmoderatorLU » Wed Jan 20, 2021 3:04 am
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Source: GMAT Paper Tests

If the consumer price index for a sample of goods and services purchased in Dallas Rose from 100 at the end of 1967 to x at the end of 1985, what was the average (arithmetic mean) annual increase in the index over this period?

A. (x+100)/18
B. x/18
C. (100-x)/18
D. (x-100)/18
E. 100x/18

The OA is D
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Re: If the consumer price index for a sample of goods and services purchased in Dallas Rose from 100 at the end of 1967

by Scott@TargetTestPrep » Wed Jan 27, 2021 5:22 am
BTGmoderatorLU wrote: ↑
Wed Jan 20, 2021 3:04 am
 Source: GMAT Paper Tests

If the consumer price index for a sample of goods and services purchased in Dallas Rose from 100 at the end of 1967 to x at the end of 1985, what was the average (arithmetic mean) annual increase in the index over this period?

A. (x+100)/18
B. x/18
C. (100-x)/18
D. (x-100)/18
E. 100x/18

The OA is D
Solution:

The average (arithmetic mean) annual increase in the index over this period is:

(Change in price index) / (Change in years)

= (x - 100) / (1985 - 1967)
= (x - 100) / 18

Answer: D

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